Today, we recommend two stocks, one from the jewellery sector and another from the retailing (textile & apparel) sector, as recommended by the Trade Brains Portal, to buy for an upside potential of more than 33%. The global jewellery industry is projected to grow at a CAGR of 5.1% from 2024 to 2032, increasing from USD 232.94 billion to USD 242.79 billion.
This growth will be driven by rising demand for gold jewellery, increasing wealth, and greater fashion awareness. Meanwhile, the textile and apparel sector remains a key pillar of the Indian economy, accounting for 2.3% of GDP, 13% of industrial output, and 12% of total exports. We also analysed the market’s performance on Friday to understand what may lie ahead for the stock indices in the coming days.
1. Kalyan Jewellers India Ltd
- Current price: Rs 501.95
- Target price: Rs 625
- Upside: 24.5%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s Recommended
Kalyan Jewellers is a well-established jewellery retailer in India, holding a 7% market share in the organised jewellery sector and maintaining a strong presence for over three decades. It ranks among the top jewellery retailers in the country, with showrooms across 23 states and Union Territories. As of June 30, 2025, the company operated 368 stores in India, encompassing a total retail space of over 883,200 sq ft. This includes 287 Kalyan stores and 81 Candere outlets, the group’s lightweight and affordable jewellery brand. Beyond India, the company has expanded its footprint with 36 showrooms in the Middle East and 2 in the USA.
In Q1 FY26, the company reported revenue from operations of Rs 7,268.50 crore, reflecting a 31% year-on-year growth compared to Rs 5,572.80 crore in Q1 FY25. Kalyan Jewellers has been growing at a CAGR of 31% since FY21. The company reported a PAT of Rs 264.1 crore for the quarter, marking a 49% year-on-year growth, with PAT growing consistently at a CAGR of 41% since FY20.
The company’s India business continues to perform well, contributing revenue of Rs 6,142.2 crore in Q1 FY26, a 31% increase year-on-year, while PAT rose 55% to Rs 256.5 crore. In terms of regional performance, South India generated revenue of Rs 3,116.2 crore, growing 30% year-on-year, whereas non-South regions reported revenue of Rs 3,026.1 crore, up 33% year-on-year. The Middle East business also showed steady growth, with Q1 FY26 revenue at Rs 1,026.5 crore, reflecting a 27% year-on-year increase.
The company’s expansion strategy is being driven by franchised showrooms under the FOCO (Franchisee Owned, Company Operated) model, which is enabling rapid growth in both the Middle East and India in a capital-efficient and strategically advantageous manner. This model is also contributing positively to the overall return profile of the company.
Looking ahead, management has guided the opening of 446 showrooms in India, 46 showrooms in the Middle East, and 233 Candere outlets (originally launched as an online business) by 2027. Additionally, the company plans to expand the number of FOCO model showrooms to 471 by 2027.
Risk Factors
A substantial portion of Kalyan Jewellers’ revenue comes from the Indian market, making the company vulnerable to domestic economic fluctuations, regulatory shifts, and volatility in gold prices. Moreover, the jewellery retail sector is highly fragmented and faces intense competition from both organised players such as Tanishq and Senco Gold, as well as numerous unorganised retailers. Frequent changes in global gold prices can impact consumer buying behaviour, influence inventory valuation, and put pressure on profit margins.
2. Vedant Fashions Ltd
- Current price: Rs 724
- Target price: Rs 965
- Upside: 33.3%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s Recommended
Incorporated in 2002, Vedant Fashions has established itself as the market leader in India’s men’s wedding and celebration wear segment, both in terms of sales and profitability. As of Q1 FY26, the company operated 670 Exclusive Brand Outlets (EBOs) across 245 cities and towns in India, along with 14 EBOs in international markets, including the USA, UAE, Canada, and the UK.
Its total retail footprint spanned 1.78 million square feet, which includes 36,000 sq ft from its international stores across four countries. The company’s brand portfolio includes popular names such as Manyavar, a category leader in wedding and celebration wear, as well as Twamev, Diwas, and Mebaz. Mohey, another of its key brands, has the highest number of outlets among competitors and enjoys a strong nationwide presence.
In Q1 FY26, retail sales rose by 23.2% compared to Q1 FY25, while same-store sales growth (SSG) stood at 17.6% year-on-year. The company recorded revenue of Rs 281 crore, up 17% from Rs 240 crore in Q1 FY25. Vedant Fashions continued to deliver industry-leading gross margins at 66.9% during the quarter. EBITDA increased by 5.9% to Rs 121 crore, with EBITDA margins at 43.2%. Profit after tax came in at Rs 70.3 crore, marking a 12% year-on-year growth from Rs 62.5 crore.
For FY26, the company’s key priorities include driving like-for-like sales growth and expanding its retail footprint significantly by year-end. The management is focused on integrating Mohey’s flagship outlets into Manyavar stores, with Mohey currently occupying around 2.5 lakh sq ft of retail space. A notable increase in retail sales is anticipated in Q3 FY26.
The company remains committed to securing high-productivity, low-rent OC (operationally compliant) store locations and aims to add premium net retail space throughout the fiscal year. Management also expects a decline in retail inflation during the first half of FY26, which would support the acceleration of its store expansion plans.
Risk Factors
The company operates in a highly competitive ethnic and wedding wear market, facing pressure from both established brands and new entrants, which can affect its market share and pricing power. Its revenue is largely driven by weddings, festivals, and other celebratory events, making it vulnerable to seasonal fluctuations and shifts in the timing or scale of such occasions. Additionally, as apparel is a discretionary spending category, both revenue and profitability are sensitive to economic downturns, with consumer caution typically leading to reduced spending in this segment.
Market Recap September 05, 2025
On Friday, the Nifty 50 opened on a strong note at 24,818.85, rising 84.55 points from its previous close of 24,734.3. It touched an intraday high of 24,832.35 before settling at 24,741, posting a modest gain of 6.7 points or 0.027%. The index remained just below its 50-day EMA but held above the 20-, 100-, and 200-day EMAs on the daily chart.
The BSE Sensex followed a similar path, opening higher at 81,012.42, up 294.41 points from its previous close, but ended slightly lower at 80,710.76, down by 7.25 points. In terms of momentum indicators, the Relative Strength Index (RSI) for the Nifty 50 stood at 49.31, while the Sensex RSI was at 47.4, both staying comfortably below the overbought threshold of 70. The Bank Nifty Index also closed in the green, gaining 39.1 points or 0.07% to end the day at 54,114.55.
Among sectoral indices, the Nifty Auto Index led the gains, closing at 26,320.6, up 325.75 points or 1.3%. Key contributors included Eicher Motors, Mahindra & Mahindra, Ashok Leyland, and Exide Industries, which rose up to 2.4%. The Nifty Capital Market Index also performed well, ending at 4,271.35, up 43.8 points or 1%. Notable gainers included BSE Ltd, which surged 4.5%, followed by KFin Technologies Ltd with a 2.8% rise, and CAMS Ltd, up 1.8%. The Nifty Transportation & Logistics Index also featured among the top gainers, climbing 236.35 points or 0.9% to close at 25,248.7.
On the losing side, the Nifty IT Index declined the most, ending at 34,635.85, down 507.25 points or 1.44%. Persistent Systems Ltd led the losses with a 3.1% drop, while Mphasis Ltd, Coforge Ltd, and HCL Technologies Ltd also fell by up to 2.2%. The Nifty FMCG Index also closed lower at 56,292.10, down 811.95 points or 1.42%. Major losers included Varun Beverages Ltd, ITC Ltd, Radico Khaitan Ltd, and Emami Ltd, with declines of up to 4.1%.
Asian markets ended Friday on a broadly positive note. Hong Kong’s Hang Seng Index climbed 369.49 points or 1.45% to close at 25,428.00. The Shanghai Composite gained 46.63 points or 1.22% to settle at 3,812.51, while South Korea’s KOSPI edged up 4.29 points or 0.13% to close at 3,205.12. Japan’s Nikkei 225 Index also advanced, rising 403.73 points or 0.94% to finish at 42,984.00. As of 4:54 p.m. IST, US Dow Jones Futures were slightly down by 14.74 points or 0.03%, trading at 45,604.55.
For the week, the Nifty gained 1.29%, or 314.15 points, closing above the 24,700 mark. The broader Indian market saw a revival, supported by the country’s five-quarter high GDP growth of 7.8% in Q1 FY26, which exceeded the RBI’s projection of 6.5%. Sentiment was further boosted by optimism over the upcoming GST reforms, set to be implemented on September 22, 2025.
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