255% returns in a year: Kalyan Jewellers shares in focus as company to acquire remaining 15% stake in Enovate Lifestyles

Kalyan Jewellers shares will be in spotlight on Tuesday (June 4) as the company said it will acquire the remaining 15 per cent stake in its e-commerce subsidiary Enovate Lifestyles, which operates under the brand Candere, for Rs 42 crore.

As per a report by PTI, the deal, to be completed in three tranches, will make Candere a wholly owned unit as Kalyan Jewellers shifts focus from pure e-commerce to an omnichannel strategy, the company said in a regulatory filing.

Kalyan Jewellers first acquired a majority stake in Candere in 2017 to enter the online jewellery market. The latest transaction involves buying 57,320 equity shares from existing shareholder Rupesh Jain.

"We're excited to explore an emerging market segment within the jewellery industry, focusing on lightweight, fashion-forward designs," Managing Director T S Kalyanaraman said.

Candere, which reported an annual revenue of Rs 130.3 crore in the 2023-24 fiscal, launched 11 physical showrooms last year and plans to quadruple its offline presence this fiscal.

Kalyan Jewellers Q4 results 

Kalyan Jewellers' India business recorded 38 per cent on-year growth in Q4, on the back of healthy same-store sales growth, the highest in all FY24 quarters. For the full year, India's businesses's revenue grew by 36 per cent from the previous year.

It also added 10 new 'Kalyan' showrooms in India, with nine following the franchise-owned-company-operated model.

The Middle East, which contributes 14 per cent to the company's revenue, saw two new showrooms open. Strong same-store sales growth in the region contributed to a 14 per cent revenue increase in the March quarter.

Kalyan Jewellers also expressed optimism over the ongoing quarter, saying it noted positive trends in advance collections for both Akshaya Tritiya and purchases related to weddings.

Kalyan Jewellers share price: Past performance 

In a year, shares of Kalyan Jewellers have given multi-bagger returns of over 252 per cent against Nifty50's rise of over 25 per cent.

(With inputs from agencies.)

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