ICICI Securities recommends buying Kalyan Jewellers shares

ICICI Securities has recommended investors to add Kalyan Jewellers to their portfolios. The firm set a target price of Rs 520 for the stock, which is currently priced at Rs 475. Kalyan Jewellers showed strong growth in its latest financial results. In the third quarter of FY24, the company's revenue rose by 39.57% compared to the same period last year. Their net profit reached Rs 218.68 crore. The company operates in the Gems and Jewellery sector and was incorporated in 2009. It has a market capitalization of Rs 48,601.23 crore. Key segments for Kalyan Jewellers include diamonds, gems, and other jewellery-related revenue. ICICI Securities expects continued strong growth, projecting a revenue and profit increase of 28% and 39%, respectively, from FY24 to FY27. However, they also highlighted risks such as delays in expanding showrooms and rising competition, especially in South India. As of December 31, 2024, promoters held 62.85% of the shares. Foreign Institutional Investors (FIIs) owned 16.37%, and Domestic Institutional Investors (DIIs) held 13.51%.