Shares of Kalyan Jewellers India gained in early trade on September 15 after UBS initiated coverage on the jewellery retailer with a ‘Buy’ rating and a Rs 900 price target, implying nearly 50% upside from the stock’s previous close of Rs 601.15. The stock was trading around 1.5% higher at Rs 610 in early deals.
UBS’ bullish view comes on the back of Kalyan Jewellers’ rapid retail expansion, strong revenue growth and what the brokerage sees as an attractive valuation compared with larger organised jewellery player Titan.
According to UBS, Kalyan Jewellers has emerged as a pan-India jewellery retailer, broadly replicating Titan’s footprint while differentiating itself through a hyper-local approach.
The brokerage highlighted Kalyan’s franchise-owned, company-operated (FOCO) model as a key growth driver. Under this model, franchise partners support the capital requirements while Kalyan operates the stores, allowing the company to expand its network with a relatively lighter capital burden.
