Kalyan Jewelers Share Price: Why is there loot in Kalyan Jewellers? What are the 5 big reasons behind the huge rise of 15%, understand here

Shares of Kerala’s famous jewelery company Kalyan Jewelers India Ltd saw a huge rise of 16.73% in the morning trade on Thursday, July 9. In fact, after the company’s June quarter (Q1) business update, global brokerage firm Citi is looking very positive about this stock, the impact of which is clearly visible on the market. As of 12:20 pm, Kalyan Jewelers stock was trading at Rs 436.60, up 16.67% from its previous closing price (Rs 374.15).

What is the real reason for the boom?

The biggest role behind this rise on Thursday is a report by Citi. Citi has double-upgraded this stock and given it a ‘Buy’ rating. Not only this, he has set a target price of Rs 750 for it. This means that there is a possibility of an increase of about 97% from the price at which the market opened on Thursday (about Rs 380).

This confidence is not out of thin air, but behind it is the company’s excellent performance in the first quarter of the current financial year (FY27):

The consolidated revenue (total earnings) of Kalyan Jewelers has increased by about 38% on an annual basis. Due to strong demand in the Indian market, ‘same-store sales growth’ (sales from the same store) in the main domestic market has been around 28%. Although this revenue growth was slightly lower than Citi’s estimate of 45%, the brokerage firm is still quite confident about the company’s long-term future.

Why does Citi see a strong future?

The brokerage firm believes that the franchise-based expansion policy of Kalyan Jewelers is doing wonders. With this, the company is expanding its network without investing much money, which will not only increase their earnings but will also improve capital efficiency. There is full hope that the company’s debt will reduce and ‘Return on Capital Employed’ (RoCE) will improve in the coming time.

Shine continues in foreign business also

Despite all the geopolitical tensions, Kalyan Jewelers’ international business has performed strongly. A growth of about 35% has been recorded in foreign trade on annual basis. There has been a jump of about 30% in the earnings from Middle East (West Asia), which mainly came from same-store sales, as the company did not open any new stores abroad during this quarter (April-June). The share of international business in the total earnings of the company was about 14%.

‘Candere’ did wonders!

The pace of Kalyan Jewellers’ digital-first jewelery platform ‘Candere’ is showing no signs of slowing down. In the first quarter, it has registered a robust revenue growth of 112% on an annual basis. During this quarter, the company has further strengthened its network by opening 12 new Kalyan showrooms and 5 new Candere showrooms in India.

What is the way forward?

The management of the company says that they have started the second quarter (Q2) on a very positive note. In view of the upcoming festival and wedding season, customer demand is expected to remain strong.

But be a little careful…

Even though Citi is very excited about this stock, it has also advised investors to keep an eye on some things. This is the first time in the last 13 quarters that the revenue growth of Kalyan Jewelers in India has been less than that of its rival ‘Titan’. If there is a sudden slowdown in the demand for jewellery. There is a delay in reducing the company’s debt. Or if the company deviates from its asset-light (asset-light, franchise) strategy, it could impact the stock.

The post Kalyan Jewelers Share Price: Why is there loot in Kalyan Jewellers? What are the 5 big reasons behind the huge rise of 15%, understand here appeared first on Latest.