Kalyan Jewellers India, one of India's largest jewellery companies, has been experiencing a remarkable surge in its share prices this year, consistently achieving new record highs. On Friday, the company's shares ascended by 4%, reaching a historic high of ₹261.90, surpassing their previous peak at ₹234.45.
In August, the shares spiked 44.13%, registering their largest monthly gain since listing. This remarkable upturn followed the inclusion of Kalyan Jewellers' shares in the MSCI Global Small Cap Indices. Over the past three months, shares have more than doubled in value, generating an impressive return of 125.85%. Furthermore, in the current year so far, the shares have surged by 94%.
The company shares were listed on March 26, 2021, at ₹75.3 apiece as compared to the issue price of ₹87. During its debut year, the shares suffered, concluding the year with a 21.26% decrease in value, reaching ₹68.5. The first half of CY22 continued to be challenging, with the stock even touching an all-time low of ₹55.
However, the second half of the year witnessed a significant turnaround, with six consecutive months of gains culminating in an impressive year-end rally of 85%. Currently, the stock has surged by 346% from its all-time low and 182.2% from its issue price.
Just a week ago, Kalyan Jewellers inaugurated its 200th showroom globally in Jammu, marking a significant milestone for the brand. The company's presence extends across 22 states and union territories in India, as well as four countries in the middle east.
In the fiscal year FY24, Kalyan Jewellers has ambitious plans to launch 52 non-south stores, with the majority of these showrooms operating under the FOCO (Franchise Owned Company Operated) model.
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.
Total revenue from the middle east operations during Q1FY24 came in at ₹700 crore as against ₹574 crore in Q1 of the previous financial year, a growth of 22%. The Middle East region contributed 16% to the overall consolidated revenue of the company.
However, the e-commerce division, Candere, reported a revenue of ₹34 crore for the quarter, down from ₹44 crore in the corresponding quarter of the previous year.
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 the corresponding quarter of the previous year.
The Middle East operations recorded a PAT of ₹17 crore for the quarter compared to a PAT of ₹14 crore in the corresponding quarter of the previous year, a growth of 24%.
06 analysts polled by MintGenie on average have a 'strong buy' call on the stock.
Disclaimer:The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie. We advise investors to check with certified experts before taking any investment decisions.
