Kalyan Jewellers shares: What do brokerages make of jewellery retailer's Q4 update?

Kalyan Jewellers share price, Kalyan Jewellers Q4 update: The stock of Kalyan Jewellers rallied as much as 1.97 per cent to Rs 439 apiece on the NSE on Monday, April 8, as brokerages have raised their respective target prices on jewellery retailer post the company's Q4 update. The counter closed at Rs 433, up 0.58 per cent on NSE. 

Kalyan Jewellers share price target: Here's what brokerages make of Kalyan Jewellers' Q4 update

Citi has maintained a buy call on Kalyan Jewellers. The brokerage has raised the target to Rs 500 from Rs 480. The revised target implies an upside potential of 16 per cent from the previous close.

HSBC has maintained a buy call on the counter. The brokerage has raised the target to Rs 500 from Rs 420.

Kalyan’s consolidated sales were up around 34 per cent YoY in 4Q, led by strong India sales (around 38 per cent YoY) with healthy strong same-store sales growth (SSSG), beating consensus, the brokerage said in its note.

"The company opened 10 new Kalyan showrooms (nine franchise) in 4Q, taking the total India count to 204; it is set to open 80 in FY25e," the brokerage's note added.

Kalyan Jewellers Q4 update

Kalyan Jewellers reported steady sales growth, cheered by investors, despite a spike in gold prices. The jeweller reported 34 per cent year-on-year (YoY) growth in its consolidated revenue in the quarter in review, driven by strong footfalls ahead of the wedding season.
For FY4, its consolidated revenue rose 31 per cent on year, the company's business update read.

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.

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