Shares of Kalyan Jewellers India rose 7.7 percent on Friday, July 07, to hit a 52-week high of Rs. 165.70 during the early trading session on BSE.
This surge was attributed to the company's announcement of a 31 percent year-on-year growth in consolidated revenue for the June quarter. The positive performance was driven by the sustained momentum in footfalls and revenue across both Indian and Middle Eastern markets.
During Friday’s trade, the stock opened at a price of Rs. 157.25 per share against the previous close of Rs. 153.90 per share and grew further during the early trading session to touch an intraday high of Rs. 165.70.
It was trading at ₹165.10, up by 7.28 percent, at 11:15 a.m. on the BSE.
The stock has shown tremendous growth of nearly 50 percent in the last one month. Moreover, in the past one year, it has given a positive return of over 159 percent. Furthermore, in the last five years, the stock has gained almost 120 percent.
“The recently concluded quarter has been yet another positive one for Kalyan Jewellers, having witnessed continued robust momentum in both footfalls and revenue across all our markets in India and the Middle East over the past several quarters,” the company said.
The company stated that the momentum in same-store revenue growth was widespread across various regions. However, non-south markets exhibited higher overall revenue growth, primarily due to the increased number of showrooms launched in that area over the past year.
In terms of gross margin at the showroom level, there has been an improvement compared to the same period in the previous financial year, and it has remained relatively consistent with the prior quarter.
Kalyan Jewellers noted that the blended gross margin has declined both sequentially and when compared to the same period in the previous financial year, as anticipated, due to the higher proportion of revenue from franchised showrooms.
During the recently concluded quarter, Kalyan Jewellers has expanded its presence by opening 12 new 'Kalyan' showrooms in non-south markets. Looking ahead, the company plans to launch approximately 20 additional showrooms in non-south markets before Diwali.
This is in line with their previously communicated goal of opening a total of 52 new showrooms during the current year.
Kalyan Jewellers India Ltd., established in 2009, is a small-cap company with a capitalization of Rs. 16,934.54 crore that operates in the gems & jewellery industry. The company is engaged in offering gold, diamond, platinum and silver jewellery products and has approximately 137 retail stores spread across India and the Middle East.
According to a MintGenie poll, 6 analysts on average have a ‘STRONG BUY’ call on the stock.