Kalyan Jewellers shares fall 7% despite 38% revenue growth in Q1

Shares of Kalyan Jewellers India Ltd. fell as much as 7.5% in early trading on Tuesday, July 7, despite the jewellery retailer reported a strong business update for the June quarter.The company said its consolidated revenue grew approximately 38% year-on-year during the first quarter of FY27, supported by healthy demand across markets.Same-store sales growth stood at around 28% during the quarter, indicating robust growth from existing stores.Kalyan Jewellers' international business also maintained strong momentum, with revenue rising nearly 35% year-on-year.Meanwhile, Candere, the company's digital-first jewellery brand, continued to outperform, recording revenue growth of approximately 112% during the quarter.In comparison to Kalyan, its peer Titan has reported a consumer business revenue growth of 41% year-on-year during the quarter, led by the Jewellery business, which grew by 39%. While Kalyan's international business saw growth of 35% during the quarter, Titan's international business more than doubled in value, rising 128% from last year during the quarter.Growth in Titan's watches and eyecare business also grew by 23% each during the quarter, in comparison to the same quarter last year. Titan's shares are trading with gains of 1.5% this morning.Shares of Kalyan Jewellers India are trading 6.2% lower on Tuesday at ₹357.6. The stock is now down 26% so far this year. The stock is the second-worst performing stock on the Nifty 500 today.Despite the 26% fall seen by the stock so far this year, it remains a "consensus buy" on the street, with all eight analysts covering the stock maintaining their "buy" rating on it. The consensus estimates of price targets implies an upside potential of 85% from current levels.Asian Markets Securities has the highest price target on the street for Kalyan Jewellers at ₹770 per share, followed by Citi at ₹750.