Kalyan Jewellers India Ltd shares rose 9.31% on Friday, reaching Rs 481.30 following strong December quarter results. Despite the surge, the stock remains down 38.47% for January. Motilal Oswal Financial Services (MOFSL) reiterated its 'Buy' rating on the stock, projecting a 42% upside with a target price of Rs 625. MOFSL highlighted Kalyan's successful franchise model contributing 40% of revenue and expansion beyond southern markets, boosting profitability and reducing debt through asset-light operations.

The brokerage noted challenges in urban markets, which could pressure discretionary categories by FY26, prompting a normalized valuation multiple of 50 times December 2026 EPS. Kalyan's Q3 revenue grew 40%, meeting estimates, while gross margins for the Indian business contracted by 170 basis points to 12.8%, attributed to rising franchise contributions.

Meanwhile, MOFSL's asset management arm dismissed bribery allegations as "baseless, malicious, and defamatory," reaffirming its ethical practices and transparency built over four decades.