47% rally in 4 days! Kalyan Jewellers shares rise another 10%. Should you book profit?

Shares of Kalyan Jewellers extended their winning streak on Monday, climbing another 10% to Rs 522 and registering gains for the fourth consecutive trading session. The stock has rallied 47% during this period after the company’s stronger-than-expected first-quarter business update triggered renewed buying interest.

The company’s first-quarter business update indicated an estimated 38% year-on-year growth in consolidated revenue for Q1FY27. Kalyan Jewellers attributed the strong performance to healthy operating momentum and robust same-store sales growth across its key Indian markets. This was achieved despite the entire 28-day Adhik Maas period, which occurs once every three years and is generally considered unfavourable for weddings, falling during the recently concluded quarter.

Kalyan Jewellers share price: Should you book profit?

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities said the shares have registered a fresh consolidation breakout on the weekly chart, backed by a sharp rise in trading volumes, lending credibility to the breakout. The RSI has climbed above the 60 mark, signalling strengthening bullish momentum.

The stock has also closed above the upper Bollinger Band, a characteristic often observed during strong trending moves. As long as the stock sustains above the Rs 425–430 zone, the bullish bias is likely to remain intact. Traders may consider buying on dips while maintaining a stop-loss below this support zone, he added.

Also read: Q1 surprise sends jewellery stocks shining 40% in a month. Will the surge last in next quarters?

What are analysts saying?

Citi remains bullish on Kalyan Jewellers, with a target price of Rs 750, implying 58% upside. The brokerage expects the company’s franchise-led expansion strategy to support future revenue growth and believes its asset-light model will aid deleveraging while improving return on capital employed (ROCE).

ICICI Securities has also maintained a Buy rating on Kalyan Jewellers, with a target price of Rs 670, implying 41% upside. The brokerage said the company’s robust Q1FY27 performance despite multiple headwinds underscores resilient jewellery demand. While continued store expansion and the formalisation of the industry reinforce its positive outlook, it flagged any structural decline in natural diamond prices as a key risk.

Going forward, investors will closely monitor management commentary, festive season demand and the pace of store expansion, all of which are likely to shape the sector’s performance over the coming quarters.

Read more: Kalyan Jewellers stock to double from here? Why analysts are bullish

The gold jewellery industry entered FY27 facing a four-pronged challenge. Soaring oil prices, rising inflation concerns and renewed expectations of higher interest rates amid the West Asia crisis coincided with the once-in-three-years Adhik Maas period, which typically dampens wedding-related jewellery demand. At the same time, Prime Minister Narendra Modi urged citizens to curb gold purchases to help arrest the freefall in the Indian rupee, while customs duty on gold was raised to 15% from 6%.

Despite these headwinds, India’s listed jewellery stocks have moved in the opposite direction. Backed by stronger-than-expected June quarter business updates, the sector has rallied as much as 47% in just one month.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)