KALYANKJIL

Kalyan Jewellers India is expected to remain in focus on Wednesday after brokerage Citigroup reaffirmed its 'Buy' rating on the stock. The brokerage's target price suggests the shares could more than double from current levels. Although the company's June-quarter revenue growth came in below Citi's expectations, the brokerage maintained its positive long-term outlook. Kalyan Jewellers reported a 38% year-on-year increase in consolidated revenue for the quarter, while its India business also recorded 38% revenue growth, supported by a strong 28% same-store sales growth (SSSG). Despite the softer-than-expected quarterly performance, Citi remains optimistic about the company's growth prospects. The brokerage highlighted Kalyan Jewellers' franchise-led expansion strategy as a key driver of long-term growth, noting that the asset-light model enables faster store expansion while improving return on capital employed (RoCE) through lower capital requirements compared with company-owned outlets. In its June-quarter business update, Kalyan Jewellers also reported that its international business grew approximately 35% year-on-year, with West Asia delivering around 30% growth. Overseas operations accounted for nearly 14% of the company's consolidated revenue during the quarter.