UBS Boosts Kalyan Jewellers Kalyan Jewellers (KJ) shares opened 1.5 % higher at ₹610 after UBS launched a coverage note on Tuesday, recommending a buy and setting a target price of ₹900 per share. The rating comes after the company’s stock fell 1.89 % to ₹601.15 on Friday, following a market‑holiday pause on Monday.
Growth Highlights UBS praised KJ’s rapid expansion, noting that the retailer’s franchise‑owned, company‑operated (FOCO) model enables it to open stores at almost twice the speed of industry peer Titan. The brokerage highlighted a revenue CAGR of roughly 35 % between FY22 and FY26, one of the highest in the organised jewellery sector. Looking ahead, UBS expects revenue and earnings to compound at about 23 % annually over the next five years, driven by continued network growth.
Valuation and Outlook Despite a six‑fold appreciation in share price between FY22 and FY26, UBS sees room for a further re‑rating. KJ trades at around 30× estimated FY28 earnings, roughly 45 % cheaper than Titan’s valuation. The brokerage’s target price of ₹900 reflects a significant upside potential, especially given the company’s strong franchise model and high growth trajectory.
Market Reaction The broader market mirrored the positive sentiment, with the Sensex up 266 points (0.36 %) to 75,047.91 and the Nifty 50 gaining 69 points (0.29 %) to 23,466.80 at 9:25 am. KJ’s market capitalisation stood at about ₹62,100 crore on Friday’s close, and the stock has outperformed the Nifty 50 by more than 24 % in 2026.
What to Watch Investors will be keen to see how KJ’s franchise model continues to fuel store additions and whether the company can sustain its projected 23 % CAGR in revenue and earnings. UBS’s bullish stance suggests that further upside may materialise if the retailer expands aggressively and maintains its high growth rates.
The next few weeks will be critical to gauge whether the market embraces UBS’s valuation call and whether KJ’s stock can sustain its recent rally amid broader market volatility.