Kalyan Jewellers Stock Performance Update
The shares of Kalyan Jewellers experienced a significant surge, rising over 4% on September 12, and reaching a new 52-week high of ₹683.15. This remarkable ascent comes on the heels of an announcement from brokerage giant HSBC, which has notably increased its target price for the stock, signaling strong investor confidence in the company’s future prospects.
Revised Target Price and Growth Potential
HSBC has reaffirmed its bullish stance on Kalyan Jewellers, forecasting a potential price increase of approximately 19%. The brokerage firm has upgraded its target price for the stock from ₹600 to a robust ₹810, suggesting that there is still substantial room for growth within this stock, which has appreciated over eight times in value over the past two years.
Current Trading Activity
As of 11:12 AM, Kalyan Jewellers shares were trading at ₹675.35 on the National Stock Exchange (NSE). The trading volume for the stock was notably strong, with 6.3 million shares exchanged, surpassing its average trading volume of 5 million shares over the past week. This indicates heightened investor interest and confidence in Kalyan Jewellers’ performance.
Positive Outlook and Strategic Expansion
HSBC expressed its admiration for Kalyan Jewellers, particularly highlighting its pragmatic capital expansion strategies. The brokerage believes that the company’s strong and continuous growth trajectory positions it favorably in a competitive landscape, especially against rivals like Titan.
Valuation Comparisons and Promoter’s Stake
Kalyan Jewellers currently trades at an estimated FY26 PE ratio of 56x, approximately 10% lower than that of Titan. This valuation makes Kalyan Jewellers an attractive proposition compared to other companies in the consumer sector. Additionally, there was a recent development where the company’s promoter, Trikur Sitarama Iyer Kalyanaraman, increased his stake by acquiring an additional 2.36% earlier last month from global private equity firm Warburg Pincus. This move amplifies the expectations of robust growth for Kalyan Jewellers moving forward.
Conclusion
Kalyan Jewellers appears well-positioned for sustained growth, thanks to its strategic initiatives and favorable market conditions. Investors are encouraged to monitor its stock performance closely, especially in light of HSBC’s positive outlook and target price upgrades.
Disclaimer
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