Shares of Kalyan Jewellers India, one of India's largest jewellery companies, spiked 10.2% to hit a fresh all-time high of ₹258.3 apiece during Friday's early trade. This sharp surge came in response to the company's Q2FY24 business update.
In an exchange filing on Friday, the company reported strong performance in terms of both foot traffic and revenue across all its markets in India and the Middle East during Q2FY24.
For the quarter ending in September, the company achieved consolidated revenue growth of 27% compared to the same period in the previous financial year and it saw 29% revenue growth in the first half of the current financial year when compared to the same period in the prior year.
In India, the company saw revenue growth of 32% during Q2FY24 compared to Q2FY23. This growth was led by robust operating momentum on the ground with healthy same-store sales growth across all the key markets in the country.
During the quarter, Kalyan Jewellers added 13 new 'Kalyan' showrooms in non-southern markets, with plans to launch an additional 26 showrooms in the next 40 days as part of its previously announced expansion plan. This will bring the total number of new showrooms launched in the current financial year to 51 by Diwali.
In addition, the company signed six LOIs for the first set of pilot franchised showrooms in the south region, and the company expects to launch these showrooms sometime during the second half of the current financial year.
Meanwhile, the company's digital-first jewellery platform, Candere, launched its first franchised showroom in Jammu during Q2 FY24.
"Candere recorded a revenue de-growth of 15% during September quarter as compared to the same period during the last year. However, we are continuing to witness encouraging trends in its already-opened physical showrooms and have additionally signed 25 LOIs with potential franchisees," the company said in an exchange filing.
Stock Price History
Kalyan Jewellers has been experiencing a remarkable surge in its share price this year, producing a return of 101.5% so far. In August alone, the shares spiked 45%, registering their largest monthly gain since listing. This remarkable surge followed the inclusion of Kalyan Jewellers' shares in the MSCI Global Small Cap Indices.
Over the past six months, shares have more than doubled in value, generating an impressive return of 139%. Furthermore, over the last one-year period, they are up by 153%. The shares were listed on March 26, 2021, at ₹75.3 apiece as compared to the issue price of ₹87. At current levels, the stock is trading 197% higher than its IPO price.
Q1FY24 Performance
For the June-ending quarter, the company recorded consolidated revenue of ₹4,376 crore, a growth of 31% compared to ₹3,333 crore in the corresponding quarter of the previous year, driven by an acceleration in store expansion.
The consolidated profit after tax (PAT) for the quarter reached ₹144 crore, reflecting a 33% increase from the PAT of ₹108 crore recorded during the same period in the previous year.
The India operations recorded a PAT of ₹129 crore for the quarter, compared to a PAT of ₹95 crore in Q1FY23. The Middle East operations recorded a PAT of ₹17 crore, a growth of 24% YoY.
06 analysts polled by MintGenie on average have a 'buy' call on the stock.
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