Kalyan Jewellers India Limited (NSE:KALYANKJIL) just released its latest quarterly results and things are looking bullish. Kalyan Jewellers India beat earnings, with revenues hitting ₹103b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 18%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kalyan Jewellers India after the latest results.
After the latest results, the ten analysts covering Kalyan Jewellers India are now predicting revenues of ₹455.8b in 2027. If met, this would reflect a meaningful 9.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 6.7% to ₹16.55. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹450.2b and earnings per share (EPS) of ₹15.79 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Kalyan Jewellers India
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.2% to ₹816. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Kalyan Jewellers India, with the most bullish analyst valuing it at ₹950 and the most bearish at ₹740 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Kalyan Jewellers India's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 20% growth on an annualised basis. This is compared to a historical growth rate of 28% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 14% annually. Even after the forecast slowdown in growth, it seems obvious that Kalyan Jewellers India is also expected to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Kalyan Jewellers India's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Kalyan Jewellers India going out to 2029, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Kalyan Jewellers India that you should be aware of.
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