Kalyan Jewellers India Ltd has received a vote of confidence from Citi, which reaffirmed its 'Buy' rating on the stock with a price target of ₹650. The jewellery retailer's ambitious expansion plans and strong financial performance have caught the attention of investors and analysts alike.

Expansion Plans and Debt Repayment

Kalyan Jewellers has unveiled an aggressive growth strategy, announcing plans to open 90 new stores in the fiscal year 2026. This expansion is expected to strengthen the company's market presence and potentially drive future revenue growth.

In a move that could improve its financial health, the company has also set its sights on debt reduction. Kalyan Jewellers aims to repay ₹350.00 crore of its existing debt, which could lead to improved financial flexibility and reduced interest expenses in the coming years.

Strong Q4 Performance

The jewellery retailer has reported impressive financial results for the fourth quarter:

These robust figures demonstrate Kalyan Jewellers' ability to capitalize on strong demand in the jewellery market, despite challenging economic conditions.

Shareholder Returns

In a move that will likely please investors, Kalyan Jewellers has announced a final dividend of ₹1.50 per share for the fiscal year 2025. This dividend declaration underscores the company's commitment to delivering value to its shareholders.

Market Outlook

The reaffirmation of the 'Buy' rating by Citi, coupled with the ambitious expansion plans and strong financial performance, suggests a positive outlook for Kalyan Jewellers. The company appears well-positioned to capitalize on the growing demand in the Indian jewellery market.

As Kalyan Jewellers continues to execute its growth strategy and maintain its financial momentum, investors and industry observers will be keenly watching the company's progress in the coming quarters.

Kalyan Jewellers , a prominent player in the Indian jewelry market, has announced significant expansion plans and ambitious profit margin targets, signaling a robust growth strategy for the company.

Profit Margin Targets

The company has set its sights on enhancing profitability, with a target for profit before tax (PBT) margins to exceed 5.00%. This goal underscores Kalyan Jewellers' commitment to improving its financial performance and creating value for its shareholders.

Expansion of Candere Brand

In a move to strengthen its market presence, Kalyan Jewellers has unveiled plans for a substantial expansion of its Candere brand. The company aims to launch 80 new showrooms across India during the current financial year. This aggressive expansion strategy is designed to capture a larger share of the growing jewelry market in the country.

Diverse Operational Models

The expansion plan for Candere showrooms will employ a mix of two operational models:

1. Franchise-Owned Company-Operated (FOCO): This model allows for rapid expansion while maintaining control over operations and brand standards.

2. Company-Owned Company-Operated (COCO): This traditional model ensures complete control over both ownership and operations of the showrooms.

The combination of these models suggests a balanced approach to expansion, allowing Kalyan Jewellers to optimize its growth strategy while managing risks and maintaining brand consistency.

Conclusion

This ambitious expansion plan, coupled with the target for improved profit margins, indicates Kalyan Jewellers' confidence in the Indian jewelry market's potential and its own ability to capture a larger market share. As the company moves forward with these plans, it will be interesting to observe how these strategies impact its market position and financial performance in the coming quarters.