{"id":9738,"date":"2025-12-11T10:21:40","date_gmt":"2025-12-11T04:51:40","guid":{"rendered":"https:\/\/thankyoubharat.com\/index.php\/2025\/12\/11\/invest4edu-upgrades-khazanchi-jewellers-target-price-to-%e2%82%b9900-signals-23-upside\/"},"modified":"2025-12-11T10:21:40","modified_gmt":"2025-12-11T04:51:40","slug":"invest4edu-upgrades-khazanchi-jewellers-target-price-to-%e2%82%b9900-signals-23-upside","status":"publish","type":"post","link":"https:\/\/thankyoubharat.com\/index.php\/2025\/12\/11\/invest4edu-upgrades-khazanchi-jewellers-target-price-to-%e2%82%b9900-signals-23-upside\/","title":{"rendered":"Invest4Edu Upgrades Khazanchi Jewellers\u2019 Target Price to \u20b9900; Signals 23% Upside"},"content":{"rendered":"
\n

Mumbai (Maharashtra) [India], December 11:<\/strong> invest4Edu Initiates Coverage Update on Khazanchi Jewellers \u2013Invest4Edu Research has issued a BUY rating on Khazanchi Jewellers Limited following a strong Q2 FY26 performance, revising its target price to \u20b9900 from the previous \u20b9805. With the stock currently trading at \u20b9734, the brokerage expects an upside potential of 23%, supported by robust earnings, margin expansion, and a balanced wholesale\u2013retail growth strategy.<\/p>\n

In Q2 FY26, the company reported 46.2% YoY revenue growth to\u00a0\u20b9548.6 crore, driven by sustained wholesale demand and improving traction in its design-led retail offerings. Profitability surged, with EBITDA rising 113.3% YoY to\u00a0\u20b932.3 crore and PAT increasing 119.5% YoY to\u00a0\u20b923.5 crore. In H1 FY26, revenue stood at\u00a0\u20b9952.34 crore, up 25.94% YoY, while EBITDA increased to\u00a0\u20b953.36 crore, up 87.29% YoY. PAT rose to\u00a0\u20b938.70 crore, up 93.66% YoY, reflecting a stronger product mix and improved operational efficiencies.<\/p>\n

B2B Segment: The Core Engine of Scale<\/strong><\/p>\n

The company continues to maintain a dominant presence in India\u2019s organised jewellery wholesale ecosystem, with ~90% of revenue coming from B2B operations. The company supplies to jewellers across India, backed by a design portfolio of over 5 lakh unique designs ranging from traditional wedding sets to modern, lightweight collections.<\/p>\n

Margins in the B2B segment remain healthy, with gold ornament margins at 4.5\u20135%, and diamond jewellery at 10\u201312%. The company\u2019s premium natural diamond line, Vajraa Diamonds, saw encouraging uptake this quarter, reinforcing\u00a0the company\u2019s growing influence in value-added categories.<\/p>\n

Retail Expansion to Boost Margins & Brand Equity<\/strong><\/p>\n

While wholesale drives scale,\u00a0the company\u00a0is steadily enhancing its retail presence to strengthen blended margins. The company\u2019s upcoming 10,000 sq. ft. flagship showroom in Sowcarpet, Chennai, opening in\u00a0January 2026,\u00a0is expected to contribute\u00a0\u20b9550\u2013600 crore in annual revenue and lift retail margins from the current 9\u201310% to 12\u201313%.<\/p>\n

The flagship store will showcase premium Kundan, Polki, Jadau, Diamond, and Gemstone jewellery and is expected to significantly accelerate the\u00a0expansion\u00a0of\u00a0high-value B2C sales. Management aims to increase retail contribution to\u00a020\u201325%\u00a0post\u00a0FY27,\u00a0a transition viewed positively by analysts.<\/p>\n

Strategic Focus on Value-Added Jewellery<\/strong><\/p>\n

The company\u00a0has purposefully reduced its exposure to low-margin bullion sales, reallocating capital towards ornaments and diamonds\u2014categories with structurally higher profitability. ERP-led digital transformation and real-time inventory replenishment tools are being implemented to improve capital efficiency and accelerate turnover cycles.<\/p>\n

With the Indian jewellery market rapidly formalising, Khazanchi\u2019s BIS hallmarking credibility, product innovation, and extensive design library position it strongly to capture rising demand across both wholesale and retail channels.<\/p>\n

Valuation & Outlook<\/strong><\/p>\n

Invest4Edu notes that\u00a0the company\u00a0is on track to cross\u00a0\u20b92,000 crore in revenue for FY26, supported by festive season demand and retail expansion. Based on 21.5x FY27E earnings, the revised\u00a0\u20b9900 target price reflects confidence in the company\u2019s margin trajectory, diversified portfolio, and dual-engine growth model.<\/p>\n

About Khazanchi Jewellers Limited<\/strong><\/p>\n

Khazanchi Jewellers, with over five decades of experience and located in Tamil Nadu, holds a significant position in the Indian jewellery sector. The company serves as a pivotal player in both wholesale and retail markets, specializing in a wide array of jewellery products. Offerings range from gold, diamonds, and precious stones to exquisite fancy jewellery, encompassing sought-after bullion items like coins and bars. Their business model involves raw material procurement, manufacturing and designing, the placement of products, and sales to end customers.<\/p>\n

Disclaimer:<\/strong> This article is for informational purposes only and does not constitute financial advice.<\/em><\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Mumbai (Maharashtra) [India], December 11: invest4Edu Initiates Coverage Update on Khazanchi Jewellers \u2013Invest4Edu Research has issued a BUY rating on Khazanchi Jewellers Limited following a strong Q2 FY26 performance, revising its target price to \u20b9900 from the previous \u20b9805. With the stock currently trading at \u20b9734, the brokerage expects an upside potential of 23%, supported<\/p>\n","protected":false},"author":1,"featured_media":9739,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[13],"class_list":["post-9738","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/thankyoubharat.com\/index.php\/wp-json\/wp\/v2\/posts\/9738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thankyoubharat.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thankyoubharat.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thankyoubharat.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thankyoubharat.com\/index.php\/wp-json\/wp\/v2\/comments?post=9738"}],"version-history":[{"count":0,"href":"https:\/\/thankyoubharat.com\/index.php\/wp-json\/wp\/v2\/posts\/9738\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thankyoubharat.com\/index.php\/wp-json\/wp\/v2\/media\/9739"}],"wp:attachment":[{"href":"https:\/\/thankyoubharat.com\/index.php\/wp-json\/wp\/v2\/media?parent=9738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thankyoubharat.com\/index.php\/wp-json\/wp\/v2\/categories?post=9738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thankyoubharat.com\/index.php\/wp-json\/wp\/v2\/tags?post=9738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}