BofA Takes ₹385 Cr Kalyan Jewellers Stake; Citi Target at ₹750

Kalyan Jewellers India Ltd. shares have surged about 45% over the past month after a string of positive catalysts: a 38% year-on-year jump in first-quarter revenue, a ₹385 crore stake purchase by BofA Securities Europe SA, and a Citi buy rating with a ₹750 price target.

BofA acquired 81.82 lakh shares, or 0.79% of equity, at an average ₹470.95 per share, exchange filings show. The transaction, valued at roughly ₹385 crore, was the largest disclosed institutional buy in the stock this year. Market participants said the purchase signaled confidence in the company's growth trajectory at a time when gold prices remain near record highs.

Citi initiated coverage on Kalyan Jewellers with a buy recommendation and a target price of ₹750, implying upside from recent levels around ₹680. The brokerage cited improving operating metrics, store expansion momentum, and market share gains from the unorganized sector, according to a note reviewed by AlphaScala.

The retailer reported a 38% revenue increase for the quarter ended June 2026, driven by same-store sales growth and new store additions. Kalyan Jewellers opened 17 stores in the quarter – 12 under the core Kalyan Jewellers brand and five under its Candere format – taking the total network past 250 locations across India. The company said in its operational update that consumer demand remained resilient despite elevated gold prices, with wedding-season spending offsetting some affordability concerns.

Gold prices have stayed above ₹70,000 per 10 grams in domestic markets for much of the quarter, compressing margins for smaller jewellers. Organised players like Kalyan Jewellers have used brand recognition and wider product ranges to capture customers from unorganized rivals, analysts said. The organised jewellery segment has grown to roughly 35% of the Indian market, up from 25% five years ago, according to industry data cited by the company.

Institutional ownership of Kalyan Jewellers is concentrated. Motilal Oswal Midcap Fund holds 9.38% of equity, making it the largest public shareholder after the founding family. Other domestic institutions hold another 6.7%. The strong institutional base has provided a floor for the stock during periods of gold-price volatility, traders said.

The stock's recent run has pushed its price-to-earnings multiple to about 45 times trailing earnings, above its five-year average of 32 times. Some fund managers said the premium reflects faster earnings growth relative to peers. Titan Co. trades at roughly 55 times earnings, while Tribhovandas Bhimji Zaveri trades at 28 times.

Kalyan Jewellers will report its full quarterly results in the first half of August. Investors said the numbers will need to match the operational update's tone to sustain the rally. A miss on margins or same-store growth could trigger profit-taking, two traders tracking the stock said.

For now, the combination of a marquee institutional buyer, an above-consensus revenue print, and a fresh brokerage overweight has reset sentiment around the stock. The question is whether the company can keep opening stores at the same pace without diluting returns on capital.