BlueStone gains 6% as JM Financial reiterates 'Buy', sees over 20% upside

Shares of BlueStone Jewellery and Lifestyle were in demand in early trade on Thursday after brokerage JM Financial reiterated its 'Buy' rating on the stock, citing strong growth prospects amid a structural shift in India's jewellery market. 

The brokerage believes the domestic jewellery market is transitioning from wedding-led purchases to lifestyle- and self-expression-driven consumption, creating a significant opportunity for design-led and organised players such as BlueStone. 

BlueStone shares rose 6.24 per cent to ₹540 in early trade on Thursday. At 9:47 am, the stock was trading at ₹536.50, up 5.56 per cent from its previous close. At the current market price, JM Financial sees an upside potential of over 20 per cent and has maintained a target price of ₹650 per share. 

 

According to JM Financial analysts Gaurav Jogani, Mehul Desai, Dhananjay Jain, and Rohan Kampani, BlueStone has built an integrated platform to capture this opportunity. Customer interactions across its omnichannel platform are translated into insights through its technology stack and artificial intelligence (AI) capabilities, which drive product design and are converted into finished products through in-house manufacturing within 3–4 weeks.

Lifestyle jewellery demand to drive growth

JM Financial estimates India's jewellery market will expand from around $75 billion currently to $130–140 billion by 2029, with the non-wedding jewellery segment expected to grow at a faster pace. 

"To capture this opportunity, BlueStone leverages its in-house tech stack, with AI and data analytics embedded across customer acquisition, merchandising, design, inventory management, manufacturing and omnichannel retail. Management highlighted that jewellery is a natural omnichannel category where consumers typically browse online before purchasing offline, with customers browsing 10–30 times more than they buy," said the brokerage in its report.  READ | JBM Auto, Olectra rise up to 7%; what's driving investors' interest?

Design-led model, manufacturing edge

JM Financial said jewellery is a category where design, innovation and craftsmanship matter more than gold weight. BlueStone converts insights generated through omnichannel customer interactions into products through its team of 25–30 designers. 

The company offers over 15,000 designs across 20 product categories and more than 220 sub-categories, with studded jewellery accounting for 74 per cent of its portfolio. 

"The breadth of catalogue enables BlueStone to cater to consumers across occasions and price points; collections are refreshed continuously as consumer preferences evolve," said the brokerage said. 

The brokerage added that BlueStone's design capabilities are supported by its three manufacturing facilities, which provide greater control over quality, innovation, costs and fulfilment timelines. This enables a brief-to-shelf cycle of 3–4 weeks, improves inventory productivity and allows a quicker response to changing consumer preferences, creating a tighter feedback loop between customer demand and product creation. 

According to JM Financial, store economics remain attractive, with outlets typically achieving breakeven within 3–4 months and generating higher operating leverage and inventory productivity as they mature.   READ | Rajesh Exports hits lower circuit; Sebi flags ₹15-trn revenue inflation

FY30 roadmap remains ambitious

Management is targeting revenue of ₹12,000 crore by FY30, implying a CAGR of around 50 per cent over FY26–30, along with a pre-Ind AS Ebitda margin of about 14.7 per cent. Management also plans to selectively expand through the FOFO model to accelerate penetration in Tier-II and smaller cities. 

"While management's aspirations are ambitious, our estimates remain more conservative at around 26 per cent revenue CAGR over FY26–29E, driven by 237 store additions and mid-teen SSSG, along with 310 basis points of Ebitda margin expansion over FY26–29E. Consequently, successful execution of the FY30 roadmap could provide meaningful upside to our forecasts and drive further earnings upgrades and valuation re-rating," said JM Financial.   

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