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Global brokerage firm UBS shares jewelery stock Kalyan Jewelers Super bullish report has been issued for. This share is trading around Rs 570, 29% below its high. UBS has given the biggest target of 57% upside for this. This stock has done wonders in recent times. It has given a strong return of 51% in the last three months.
UBS has maintained BUY rating for Kalyan Jewelers and has given a big target of Rs 900. This is 57% more than the share price of Rs 570. Let us tell you that in January 2025, the share had made a life high of Rs 795. From there it is trading down 29%.
- Kalyan Jewelers
- CMP-₹570
- Rating- BUY
- Target- ₹900
- Potential Return- 57%
Super recovery of 74% from year’s low
Let us tell you that in the month of June this year, this share had made a low of Rs 327. From there it has recovered 74%. The stock has given a negative return of -7.5% in the last one month. It has given returns of 51% in three months, 45% in six months and 18% so far this year. It has given a return of 27% in one year.
Strong growth expected in H2
UBS believes that despite the high base, Kalyan Jewelers’ H2 growth is likely to remain strong. The company’s network expansion and strong presence in different markets can support growth. For growth, the company has adopted FOCO i.e. franchise model. As a result, rapid expansion is being facilitated.
How will the price of gold be affected?
The rise in the price of gold is having two types of effects. Firstly the demand is weakening which is negative. Second, the average ticket size of those who are purchasing is increasing. In such an environment, the company’s product mix and inventory as per the local market will be important. Talking about the overall demand trend, it seems stable.
Gold exchange may increase
UBS also said that due to the high price of gold in the coming time, there may be a rise in gold exchange. In this, customers may be more attracted towards buying new jewelery by exchanging old gold. If this happens, there may be pressure on margins. However, to manage this, the company is focusing on better product mix, cash for gold and operational leverage. This will support the pressure on margins.