Kalyan Jewellers shares jump over 11% post-encouraging Q2 business update

Shares of Kalyan Jewellers India rallied as much as 11.4 per cent to hit a high of Rs 261.05 apiece on the BSE on Friday after the jewellery retailer released its Q2 business update. The stock's all-time high level stands at Rs 261.95 on the BSE, which was touched on September 1, 2023.

In a regulatory filing with the exchanges, the company said that it has clocked a total revenue growth of around 27 per cent for the September quarter in comparison to the same period of the previous fiscal year. Revenue growth for the H1FY24 came in at approximately 29 per cent versus the corresponding period of the last fiscal. 

For its India operations, the company said that it logged revenue growth of around 32 per cent year-on-year (YoY) in the quarter that ended September given the strong momentum on the ground with healthy sales across all major markets. “Overall, the first half of the current financial year witnessed ~33% revenue growth in India when compared to the same period in the prior year,” added the filing. 

During the September quarter, the company introduced 13 new showrooms in the non-South markets. Further, as part of its previously announced showroom roll-out plan, the company will launch an additional 26 showrooms, taking the total count of showrooms launched in the current fiscal by Diwali to 51. 

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In addition, the company signed 6 Letters of Intent (LOIs) for the first set of pilot franchised showrooms in the South region and expects to launch these showrooms sometime during the second half of the current financial year.  

The company further said that its Middle East operations accounted for around 14 per cent of the total revenue for the September quarter. 

Since its listing in March 2021 at a price of Rs 74, the stock has galloped to offer investors a stellar return to the tune of 216 per cent in just over 2 years' time. 

The stock’s 1-year return has been 134 per cent, with 52-week low and high prices at Rs 90.3 and Rs 261.9, respectively. 

The stock commands a high valuation compared to its peers with a trailing twelve months (TTM) price-to-earnings ratio of 51.5. The technical indicator RSI is also trading in the mid-range signifying increasing momentum in the counter.  

Kalyan Jewellers with a market capitalisation of Rs 24,144 crore is a small-cap company. The company forayed into the business of jewellery retailing in 1993 in Thrissur, Kerala, India.