We also analyse the market’s performance on Tuesday to see what may lie ahead for the major indices in the coming days.
Two stock recommendations from Trade Brains Portal for 10 September
Kalyan Jewellers India Ltd
Current price: ₹500
Target price: ₹625 in 12 months
Stop loss: ₹435
Why it’s recommended:With a 7% market share in the organised jewellery industry and a solid reputation spanning over 30 years, Kalyan Jewellers is a trustworthy jewellery retailer in India. With showrooms spread throughout 23 states and Union Territories, it is one of the nation’s leading jewellery retailers. By June 30, 2025, the company had 368 locations in India, totaling more than 883,200 square feet of retail space. This comprises 81 Candere stores, the group’s lightweight and budget-friendly jewellery brand, and 287 Kalyan stores. The company now has 36 showrooms throughout the Middle East and 2 in the USA, extending its reach beyond India.
The company reported revenue from operations of ₹7,268.50 crore, reflecting a 31.5% YoY growth in Q1 FY26, compared to ₹5,527.80 crore in Q1 FY25. Kalyan Jewellers has been growing at a 31% CAGR since FY21. The company reported a PAT of ₹264.1 crore for Q1FY26, marking a 49% YoY growth, with PAT growing consistently at 41% CAGR since FY20.
Kalyan Jeweller’s India business continues to perform excellently, contributing revenue of ₹6,142.2 crore in Q1 FY26, a 31% increase YoY, while PAT increased 55% to ₹256.5 crore.
In terms of regional performance, South India generated revenue of ₹3,116.2 crore, growing 30% YoY, whereas non-South regions reported revenue of ₹3,026.1 crore, up 33% YoY. The Middle East business also showed steady growth, with Q1 FY26 revenue at ₹1,026.5 crore, reflecting a 27% YoY increase.
By 2027, management had guided the opening of 233 Candere stores (which began as an online business), 446 showrooms in India, and 46 showrooms in the Middle East. Additionally, the company plans to expand the number of FOCO model showrooms to 471 by 2027. Franchised showrooms under the FOCO (Franchisee Owned, Company Operated) model are driving the company’s expansion strategy, allowing for quick growth in the Middle East and India in a way that is both strategically advantageous and capital-efficient. This model is also contributing positively to the overall return profile of the company.
Risk factors:Since the Indian market accounts for a sizeable chunk of Kalyan Jewellers’ revenue, the business is exposed to changes in the country’s economy, revisions in regulations, and volatility in the price of gold. Moreover, the jewellery retail sector is highly fragmented and faces intense competition from both organized players such as Tanishq and Senco Gold, as well as numerous unorganized retailers. Global gold prices often fluctuate, which can affect inventory valuation, affect consumer purchasing patterns, and strain business margins.
Vedant Fashions Ltd
Current price: ₹721
Target price: ₹965 in 12 months
Stop loss: ₹595
Why it’s recommended:Vedant Fashions, established in 2002, has emerged as the market leader in India’s men’s wedding and festive wear segment, excelling in both sales and profitability. As of Q1 FY26, the company operated 684 Exclusive Brand Outlets (EBOs) across 256 cities and towns, including 11 outlets overseas in countries such as the USA, UAE, Canada, and the UK. Its total retail presence covered 1.78 million square feet, including 36,000 sq ft from its international locations. The company’s portfolio features leading brands like Manyavar, the category’s top performer, as well as Twamev, Diwas, and Mebaz. Another key brand, Mohey, boasts the largest store network among its competitors and has established a strong pan-India presence.
In the first quarter of FY26, Vedant Fashions reported a 23.2% increase in retail sales over the same period last year, with same-store sales growing by 17.6% year-on-year. The company posted revenue of ₹281 crore, marking a 17% rise from ₹240 crore in Q1 FY25. Gross margins remained strong at 66.9%, among the best in the industry. EBITDA grew by 5.9% to ₹121 crore, with an EBITDA margin of 43.2%. Net profit rose 12.4% year-on-year, reaching ₹70.3 crore, up from ₹62.5 crore.
For the full fiscal year FY26, Vedant Fashions plans to drive growth by boosting like-for-like sales and significantly expanding its retail network. A strategic priority is the integration of Mohey’s flagship outlets into Manyavar stores, with Mohey currently occupying around 250,000 sq ft of space. A sharp rise in retail sales is expected in Q3 FY26. The company also remains focused on acquiring operationally efficient, low-rent store locations and aims to add high-quality retail space throughout the year. Additionally, a projected dip in retail inflation during the first half of the fiscal year is expected to support these expansion efforts.
Risk factors: The ethnic and wedding wear market is highly competitive, with pressure from both well-established players and emerging brands, potentially impacting Vedant Fashions’ market share and pricing power. The company’s revenue is heavily dependent on seasonal events like weddings and festivals, making it susceptible to shifts in the timing or scale of these occasions. Furthermore, as clothing is a discretionary expense, demand tends to decline during economic slowdowns, which can adversely affect both sales and profit margins.
How the market performed on Tuesday
The Nifty 50 began on a strong note, opening at 24,864, 90.95 points above its previous close of 24,773.15. The index touched an intraday high of 24,891.8 before closing the session at 24,868.6, up 95.45 points or 0.39%. It remained above all its key exponential moving averages (20, 50, 100, and 200-day) on the daily chart.
The BSE Sensex opened at 81,129.69 with, up 342.39 points from its previous close of 80,787.30. It ended the day at 81,101.32, up 314.02 points or 0.39%.
The Nifty 50’s Relative Strength Index (RSI) stood at 53.55, while the Sensex’s was at 51.56. Both remained well below the overbought threshold of 70. The Nifty Bank also ended in the green, gaining 29.20 points or 0.05% to settle at 54,216.
The Nifty IT index emerged as the top sectoral gainer, rising 945.45 points or 2.76% to close at 35,255.9, snapping a five-day losing streak. Infosys Ltd led the rally with a 5% jump following a board discussion on a share buyback. Other tech stocks such as Wipro Ltd, Tech Mahindra Ltd, Persistent Systems Ltd, and Mphasis Ltd rose up to 2.7%.
The Nifty Pharma index closed at 22,052.65, up 187.45 points or 0.86%. Dr. Reddy’s Laboratories Ltd topped the chart with a 3.3% gain, followed by Glenmark Pharmaceuticals Ltd and Zydus Lifesciences Ltd, which gained 3.1% and 2.6%, respectively. The Nifty Healthcare index advanced 111.15 points or 0.77% to close at 14,541.15.
Nifty Oil & Gas was the biggest laggard of the session, falling 32.5 points or 0.30% to close at 10,927.95. Indraprastha Gas Ltd was the worst performer, slipping 1.9%, while Aegis Logistics Ltd, HPCL, and BPCL also shed up 1.0%. The Nifty Realty index also ended in the red at 873.95, down 2.60 points or 0.30%, with stocks such as Anant Raj Ltd, DLF Ltd, Lodha Developers Ltd, and Godrej Properties Ltd declining as much as 1.8%.
Asian markets closed mixed on Tuesday. Hong Kong’s Hang Seng Index rose 289.09 points or 1.12% to finish at 25,923. However, China’s Shanghai Composite Index dropped 19.55 points or 0.51% to close at 3,807.29. South Korea’s KOSPI Index gained 40.46 points, or 1.24%, to end at 3,260.05. Japan’s Nikkei 225 Index, meanwhile, fell by 123.81 points, or 0.28%, to close at 43,520.00.
As of 4:12 pm IST, US Dow Jones Futures were up 17.96 points or 0.04% at 45,534.9.
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