Kalyan Jewellers: Fast Growth, Mixed Value

Kalyan Jewellers has delivered strong business growth, but the stock still looks like a classic debate between quality and valuation. For shareholders, the key question is whether the company’s rising profits can keep up with what the market already prices in. Kalyan Jewellers is one of India’s largest organised jewellery retailers, with a pan-India model and presence in the Middle East and the US. It reported revenue of Rs 35,743 crore in FY26, up from Rs 25,045 crore in FY25, while profit rose to Rs 1,350 crore from Rs 714 crore. Its latest quarterly revenue was Rs 10,275 crore, up 66.22% year on year, with net sales of Rs 10,274.94 crore and quarterly profit of Rs 410 crore. The company also posted ROCE of 21.9% and ROE of 24.8%. The stock was described as trading at about 9 times earnings in the article, but current market data shows a higher valuation, with a stock P/E near 33.2 and market cap around Rs 45,726 crore. That makes the stock less cheap than the headline may suggest, even though the business is performing well. The share has also had a volatile run, with the price moving from a 52-week low of Rs 327 to a high of Rs 618. For shareholders, this is beneficial if the company keeps expanding profitably, because earnings growth can support long-term value creation. Strong sales growth, healthy operating margins around 7%, and improving profitability are positives. But it can turn detrimental if growth slows, margins compress, or the valuation remains ahead of fundamentals. In short, the business looks strong, but the stock is not clearly a bargain.