Kalyan Jewellers notches all-time high after strong Q3 update

Kalyan Jewellers India (KALYANKJIL) shares soared to a fresh all-time high on Friday after the company staged strong growth in a quarterly business update. The stock of the Kerala-headquartered jewellery retailer gained by as much as Rs 15.6, or 4.3 per cent, to RS 379.4 apiece on BSE before succumbing to negative territory.  

At 12:30 pm, Kalyan Jewellers shares traded weaker by Rs 3.4, or 0.9 per cent, for the day at Rs 360.4 apiece on the bourse.  

In a business update, released ahead of the market hours on Friday, the company said the October-December period was satisfying in terms of footfalls as well as revenue across its markets in India and the Middle East. 

Kalyan Jewellers registered consolidated revenue growth of more than 33 per cent for the fiscal third quarter, while growth in its India operations stood at around 40 per cent led by robust operating momentum on the ground with healthy same-store sales across key markets, the company said.  

The company continued to witness positive operating momentum in the Middle East, with revenue growth at around six per cent on a year-on-year basis. The region contributed about 13 per cent to its consolidated revenue for the quarter. 

For its digital-first jewellery platform, Candere, the company recorded revenue contraction of 34 per cent, according to the filing.  

"We have achieved this positive operating performance despite multiple headwinds during the quarter, such as extreme volatility in gold prices, a higher number of ‘shradh’ days compared to the prior year and flash floods in certain parts of Tamil Nadu which affected retail sales for almost a week," the company said. 

The company's prospects also seem good in the ever-evolving gold market which witnessed splendid gains in the year gone by. 

What analysts make of Kalyan Jewellers 

Citi maintained its bullish outlook on Kalyan Jewellers after the jewellery retailer released its financial results for the second quarter. The brokerage kepy a ‘buy’ rating on the stock with a target price of Rs 440, implying a 41 per cent upside from its previous close. 

HSBC also retained its ‘buy’ call on the stock with a target of Rs 370.  The company’s domestic sales grew 32 per cent aided by a healthy 36 per cent share of new customers while franchise-led expansion gained pace and its asset-light network expansion strategy began to deliver results, according to the brokerage. 

Kalyan Jewellers shares: Past performance  

Kalyan Jewellers shares delivered a phenomenal return of 202 per cent in a year, marking a multi-fold outperformance compared to the 20 per cent rise in the headline Nifty50 index.  

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