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Hidden Gem - Bluestone Jewellery & Lifestyle (Target Price 645)

ICICIdirect Research 24 Apr 2026 DISCLAIMER

BlueStone Jewellery & Lifestyle Ltd (BlueStone), founded in 2011, is an omnichannel, digital first direct to consumer (D2C) jewellery retailer in India focused on contemporary lifestyle jewellery. It is the 2nd largest player in studded segment in India.
BlueStone differentiates itself from other branded jewellery players on back of its unique product profile (light weight jewellery for daily use), higher studded mix (60-65%) and omni channel distribution route enable it to deliver strong revenue growth with higher gross margins.
Higher studded mix results in higher gross margins for BlueStone at 37-38% compared to conventional jewellery players achieving gross margins of 15-20%.
Strong Omni channel led business model, unique product profile and consistent store addition aided the companies revenues to grow at CAGR of 58% over FY21-26 to Rs2436cr. With store addition of 60-70 stores per annum and improved store fundamentals will help revenues to grow at CAGR of 30% over FY26-28E to Rs4,133cr.
The company’s EBIDTA margins improved to ~10% in FY26 from 4% in FY22 on back of strong operating leverage. Around 150 stores out of 340 stores have attained maturity and revenues of ~Rs10cr per store. Around 20 stores opened in FY20 are clocking revenues of Rs10cr+ per store and are achieving EBIDTA margins of 25%+.
This gives an indication of strong potential of margin expansion in the coming years. We expect EBIDTA margins to touch 14% in FY28. Overall, the company’s EBIDTA is expected to grow at CAGR of 56% over FY26-28E.
Operating cash flows are expected to turn positive in FY27 and scale-up in the subsequent years. This will take care of store additions in the coming years reducing stress on the balance sheet. Thus, Bluestone is expected to achieve at PAT of Rs151cr in FY28E from loss of Rs95cr in FY26.
It will delivered strong performance in Q4FY26 with revenues growing by 48% YoY to Rs681.5cr driven by 34% SSSG. Adjusting for inventory gains, EBIDTA margins improved by 490bps YoY to 10.8%. Losses at PAT level reduced substantially to Rs7cr in Q4FY26 from Rs50cr in Q4FY25.
We recommend Buy on the stock with revised price target of Rs645. Since our initiation on Apr, 9 2026 the stock has delivered good return of 17%. We expect the momentum to continue on back of good earning visibility.

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