Kalyan Jewellers stock gains 2%; Citi sees jewellery stock to zoom up to Rs 440
The e-commerce division, Candere, recorded a revenue of Rs 66 crore in H1 FY24 and Rs 31 crore in Q2 FY24 versus Rs 81 crore in H1 FY23 and Rs 37 crore in Q2.
Shares of the midcap jewellery company Kalyan Jewellers continued to trade higher even as the market erased its early gains to trade in the red. Last at around 11:26 am, shares of the company were up 1.56 per cent at Rs 318.25, while at day’s high it marked a price of Rs 320.05 apiece on the BSE.
The Kerala-based company reported consolidated revenue in Q2 FY24 at Rs 4,415 crore as against Rs 3,473 crore in the corresponding quarter of the previous year, a growth of over 27%. Consolidated PAT for Q2 FY24 was Rs 135 crore as against a PAT of Rs 106 crore for the corresponding period in the previous year, a growth of over 27%.
The standalone revenue for the company (India) in Q2 FY24, was Rs 3,754 crore, as against Rs 2,841 crore in Q2 of the previous financial year, a growth of ~32%. The India operations recorded a PAT of Rs 126 crore for the quarter compared to a PAT of Rs 95 crore for the corresponding period in the previous year, a growth of ~32%. Total revenue from the Middle East operations during Q2 FY24 was Rs 629 crore as against Rs 601 crore in Q2 of the previous financial year, a growth of ~5%. The Middle East operations recorded a PAT of Rs 12 crore for the quarter compared to a PAT of Rs 14 crore for the corresponding period in the previous year. The e-commerce division, Candere, recorded a revenue of Rs 66 crore in H1 FY24 and Rs 31 crore in Q2 FY24 versus Rs 81 crore in H1 FY23 and Rs 37 crore in Q2.
Further, after the Q2 performance, the brokerage firm Citi has maintained its bullish outlook on the counter with a buy rating giving a target price of Rs 440, suggesting 41 per cent potential gains from the last close.
HSBC has also maintained a buy outlook on the stock with a target of Rs 370 per share. For the brokerage, the company’s domestic sales logged 32 per cent year-on-year (YoY)aided by a healthy 36% share of new customers. Franchise led expansion is gaining pace at the jeweller. Asset light network expansion strategy starts to deliver results, noted the brokerage.
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