Fundamental Analysis
Q2 FY26 Results (Released on 7 Nov 2025):
Kalyan Jewellers reported a net profit of ₹260 crore, doubling from ₹130 crore in the same period last year. Revenue grew 37.4% YoY to ₹7,856 crore, driven by strong demand across segments including gold and studded jewellery. EBITDA grew 55.8% to ₹497 crore, margins improved to 6.3%. Company expanded new stores with strong same-store sales growth of 16%. Middle East revenues grew 8%, and the e-commerce arm Candere is scaling but still loss-making. Despite gold price inflation, demand remained robust with 38% new customer addition.
Valuation & Financials:
P/E ratio around 67.5, indicating premium pricing. ROCE is a healthy 20.9%. Market cap approximately ₹53,000 crore. Strong balance sheet and effective cost management.
Technical Analysis
Current Price: ₹512 approx (Nov 6-7)
Support Levels: ₹500-505 (strong buying zone)
Resistance Levels: ₹525-535 (profit-booking zone)
Indicators: RSI around 49 (neutral), MACD and stochastic oscillator indicating consolidation with bullish bias. The stock trades close to 50 & 200-day moving averages signaling possible setup for an upward move.
Stock Movement Post Results
Results positive with strong revenue and profit growth; price likely to see neutral to positive momentum.
Short-term volatility expected within ₹500-530 range.
Long-term prospects remain bright given solid expansion plans and strong brand positioning.
Entry & Trade Levels
Short-term: Buy on dip near ₹500-505 with stop loss at ₹490 for safety.
Long-term: Accumulate on weakness below ₹490, with a target price of ₹550+ over 6-12 months horizon.
Key News & Events
Expansion in store network continues with continued geographic diversification.
Rising gold prices may impact short-term demand sentiment.
Market consolidations in the luxury and discretionary segment provide opportunities for leadership gain by Kalyan Jewellers.
Growing digital adoption via Candere is a positive catalyst.
Disclaimer & Disclosure
This analysis is for educational purpose only and not a buy/sell recommendation.
Investors should perform due diligence and consult financial advisors before any investment decision.
Stock market investment involves risks. Past performance does not guarantee future returns.
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