Kalyan Jewellers share price hits 6-month high as rally extends to fourth straight session. Is ₹700 the next stop?
It highlighted the company's hyperlocal approach to cater to diverse regional consumer preferences, the increasing share of organized players in the jewellry market, and Kalyan's rapid expansion strategy via its franchise model as key drivers of future growth.
Notably, JM Financial believes the shift to an asset-light franchise structure will support faster store rollouts and long-term profitability.
The stock's reasonable valuations also contribute to the brokerage's optimistic outlook. The brokerage has assigned a target price of ₹ 700 apiece for the stock.
According to the brokerage, Kalyan has been on an aggressive expansion spree since adopting the franchise model. This approach, considered highly capital-efficient, places the responsibility for store inventory and capex on franchise partners, thereby enabling quicker store additions. In FY25, Kalyan added 74 net stores in India and is targeting the addition of 85–90 stores annually over FY26–28E.
JM Financial believes the company would need five to six more years of expansion at this pace to match Tanishq in terms of store count.
The brokerage said, the company, over the years, has developed strong competitive moats, including brand positioning built on trust and transparency, a hyperlocal strategy, and its 'My Kalyan' initiative that enables customer acquisition in regions where it has no physical presence—contributing 15% of FY24 revenue and said it also maintains a well-balanced product mix.
Further, Kalyan has taken meaningful steps to improve corporate governance, such as appointing best-in-class auditors and selling non-core assets to reduce debt, which JM Financial believes will strengthen investor confidence.
On the financial front, the brokerage estimates revenue, EBITDA, and PAT to grow at a CAGR of 25%, 23%, and 31%, respectively, over FY25–28E, led by the addition of 278 new stores during the period. RoE and RoIC are also expected to improve to 24% and 23% by FY28 from 18% and 13% in FY25, reflecting enhanced profitability and lower capital requirements under the franchise model.
Kalyan Jewellers has shown consistent performance, with over 26% year-on-year growth in both revenue and PAT for the last eight quarters. JM Financial believes this sustained momentum has positioned Kalyan as a positive outlier in the discretionary space, which could lead to a potential re-rating of the stock.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Business Standard
13 hours ago
- Business Standard
Kalyan Jewellers eyes expansion through franchise model to reduce debt
Jewellery retailer Kalyan Jewellers plans to open 170 stores through a franchise model in domestic and overseas markets this fiscal, which will help reduce its debt liabilities, a senior company official has said. As of June 30, 2025, Kalyan Jewellers' total showrooms across India and the Middle East stood at 406 (Kalyan India - 287, Kalyan Middle East - 36, Kalyan USA - 2, Candere - 81), according to a regulatory filing. "We are planning to open 170 showrooms in 2025-26, of which 90 will be Kalyan, and of these, seven will be overseas - UK, US and Middle East. We are also looking at opening 80 stores under our lifestyle jewellery brand Candere. "The domestic expansion will be across non-south markets, including tier I, II, III and IV markets through the franchise model. Going forward, the company will expand through the franchise model and will use the excess cash to reduce debt," Kalyan Jewellers Executive Director Ramesh Kalyanaraman told PTI. Going forward, the company will expand through a franchise model and will use the excess cash to reduce its debt, he added. "Last year, we reduced Rs 400 crore debt, and this year we are planning to reduce it further by Rs 300 crore, primarily targeting our Gold Metal Loan (GML) liabilities, which will make the company's balance sheet lighter. We have land parcel collaterals mortgaged with banks for this overdraft facility. When we reduce debt, our collateral comes out, which can be further brought into the system that will make our balance sheet lighter," he noted. The Thrissur-headquartered company has a capex of around Rs 350-400 crore for maintenance and inventory for this financial year, Kalyanaraman said. "As the expansion is through franchises, we don't have to invest. Our capex for maintenance and inventory for this financial year is around Rs 350-400 crore," he stated. About plans on Candere, Kalyanaraman said, currently, the company is focusing on domestic expansion of its lifestyle jewellery brand. "For Candere, our focus will be India, besides this store in Dubai, which will open in the next quarter. We need the brand to stabilise in the domestic market and then chalk out expansion plans outside of India, which will be around 2027-28," he added. On the overall overseas expansion plans, he said Kalyan Jewellers will enter the UK this fiscal. "Our overseas expansion will be focused on the US, UK and the Middle East till next fiscal. We are getting inquiries from countries like Australia, Malaysia, and Singapore, having a large Indian diaspora; however, our overseas expansion will be very calibrated," he said. On Manufacturing, he said the company has contract manufacturers, and as of now, it is focused on front-end retailing. "We are working on improving the back-end and developing the roadmap for strengthening the back-end that will include setting up a contract manufacturing hub in Thrissur before the end of this financial year. We have acquired land for this purpose that will bring together our contract manufacturers under one place in the city," the director said. "Currently, we have over 1,000 contract manufacturers across the country." About the company's revenue expectation this fiscal, he said the expansion is on track, which will give Kalyan Jewellers a market share growth. Monsoon is also good this year. The same store sales for the past 8-9 quarters are seeing double-digit growth, and there is a tailwind for the organised segment, he pointed out. "Therefore, all put together, we are very optimistic going forward," he added. The company had reported consolidated net revenue of Rs 5,557.63 crore in the first quarter (April-June) of the 2025-26. On market share expectations, he said market share grows every year in the range of over 1 per cent for Kalyan. The company's current market share in the organised segment is around 8-9 per cent, Kalyanaraman added.
Time of India
13 hours ago
- Time of India
Kalyan Jewellers eyeing expansion through franchise model to reduce debt
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Jewellery retailer Kalyan Jewellers plans to open 170 stores through a franchise model in domestic and overseas markets this fiscal, which will help reduce its debt liabilities, a senior company official has of June 30, 2025, Kalyan Jewellers' total showrooms across India and the Middle East stood at 406 (Kalyan India - 287, Kalyan Middle East - 36, Kalyan USA - 2, Candere - 81), according to a regulatory filing."We are planning to open 170 showrooms in 2025-26, of which 90 will be Kalyan, and of these, seven will be overseas - UK, US and Middle East. We are also looking at opening 80 stores under our lifestyle jewellery brand Candere."The domestic expansion will be across non-south markets, including tier I, II, III and IV markets through the franchise model. Going forward, the company will expand through the franchise model and will use the excess cash to reduce debt," Kalyan Jewellers Executive Director Ramesh Kalyanaraman told forward, the company will expand through a franchise model and will use the excess cash to reduce its debt, he added."Last year, we reduced Rs 400 crore debt, and this year we are planning to reduce it further by Rs 300 crore, primarily targeting our Gold Metal Loan (GML) liabilities, which will make the company's balance sheet lighter. We have land parcel collaterals mortgaged with banks for this overdraft facility. When we reduce debt, our collateral comes out, which can be further brought into the system that will make our balance sheet lighter," he Thrissur-headquartered company has a capex of around Rs 350-400 crore for maintenance and inventory for this financial year, Kalyanaraman said."As the expansion is through franchises, we don't have to invest. Our capex for maintenance and inventory for this financial year is around Rs 350-400 crore," he plans on Candere, Kalyanaraman said, currently, the company is focusing on domestic expansion of its lifestyle jewellery brand."For Candere, our focus will be India, besides this store in Dubai, which will open in the next quarter. We need the brand to stabilise in the domestic market and then chalk out expansion plans outside of India, which will be around 2027-28," he the overall overseas expansion plans, he said Kalyan Jewellers will enter the UK this fiscal."Our overseas expansion will be focused on the US, UK and the Middle East till next fiscal. We are getting inquiries from countries like Australia, Malaysia, and Singapore, having a large Indian diaspora; however, our overseas expansion will be very calibrated," he Manufacturing, he said the company has contract manufacturers, and as of now, it is focused on front-end retailing."We are working on improving the back-end and developing the roadmap for strengthening the back-end that will include setting up a contract manufacturing hub in Thrissur before the end of this financial year. We have acquired land for this purpose that will bring together our contract manufacturers under one place in the city," the director said."Currently, we have over 1,000 contract manufacturers across the country."About the company's revenue expectation this fiscal, he said the expansion is on track, which will give Kalyan Jewellers a market share growth. Monsoon is also good this year. The same store sales for the past 8-9 quarters are seeing double-digit growth, and there is a tailwind for the organised segment, he pointed out."Therefore, all put together, we are very optimistic going forward," he company had reported consolidated net revenue of Rs 5,557.63 crore in the first quarter (April-June) of the market share expectations, he said market share grows every year in the range of over 1 per cent for company's current market share in the organised segment is around 8-9 per cent, Kalyanaraman added.
News18
13 hours ago
- News18
Kalyan Jewellers eyeing expansion through franchise model to reduce debt
Mumbai, Aug 3 (PTI) Jewellery retailer Kalyan Jewellers plans to open 170 stores through a franchise model in domestic and overseas markets this fiscal, which will help reduce its debt liabilities, a senior company official has said. As of June 30, 2025, Kalyan Jewellers' total showrooms across India and the Middle East stood at 406 (Kalyan India – 287, Kalyan Middle East – 36, Kalyan USA – 2, Candere – 81), according to a regulatory filing. 'We are planning to open 170 showrooms in 2025-26, of which 90 will be Kalyan, and of these, seven will be overseas – UK, US and Middle East. We are also looking at opening 80 stores under our lifestyle jewellery brand Candere. 'The domestic expansion will be across non-south markets, including tier I, II, III and IV markets through the franchise model. Going forward, the company will expand through the franchise model and will use the excess cash to reduce debt," Kalyan Jewellers Executive Director Ramesh Kalyanaraman told PTI. Going forward, the company will expand through a franchise model and will use the excess cash to reduce its debt, he added. 'Last year, we reduced Rs 400 crore debt, and this year we are planning to reduce it further by Rs 300 crore, primarily targeting our Gold Metal Loan (GML) liabilities, which will make the company's balance sheet lighter. We have land parcel collaterals mortgaged with banks for this overdraft facility. When we reduce debt, our collateral comes out, which can be further brought into the system that will make our balance sheet lighter," he noted. The Thrissur-headquartered company has a capex of around Rs 350-400 crore for maintenance and inventory for this financial year, Kalyanaraman said. 'As the expansion is through franchises, we don't have to invest. Our capex for maintenance and inventory for this financial year is around Rs 350-400 crore," he stated. About plans on Candere, Kalyanaraman said, currently, the company is focusing on domestic expansion of its lifestyle jewellery brand. 'For Candere, our focus will be India, besides this store in Dubai, which will open in the next quarter. We need the brand to stabilise in the domestic market and then chalk out expansion plans outside of India, which will be around 2027-28," he added. On the overall overseas expansion plans, he said Kalyan Jewellers will enter the UK this fiscal. 'Our overseas expansion will be focused on the US, UK and the Middle East till next fiscal. We are getting inquiries from countries like Australia, Malaysia, and Singapore, having a large Indian diaspora; however, our overseas expansion will be very calibrated," he said. On Manufacturing, he said the company has contract manufacturers, and as of now, it is focused on front-end retailing. 'We are working on improving the back-end and developing the roadmap for strengthening the back-end that will include setting up a contract manufacturing hub in Thrissur before the end of this financial year. We have acquired land for this purpose that will bring together our contract manufacturers under one place in the city," the director said. 'Currently, we have over 1,000 contract manufacturers across the country." About the company's revenue expectation this fiscal, he said the expansion is on track, which will give Kalyan Jewellers a market share growth. Monsoon is also good this year. The same store sales for the past 8-9 quarters are seeing double-digit growth, and there is a tailwind for the organised segment, he pointed out. 'Therefore, all put together, we are very optimistic going forward," he added. The company had reported consolidated net revenue of Rs 5,557.63 crore in the first quarter (April-June) of the 2025-26. On market share expectations, he said market share grows every year in the range of over 1 per cent for Kalyan. The company's current market share in the organised segment is around 8-9 per cent, Kalyanaraman added. PTI SM BAL BAL (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: August 03, 2025, 12:00 IST News agency-feeds Kalyan Jewellers eyeing expansion through franchise model to reduce debt Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
