Shares of Kalyan Jewellers India rose 3.4 percent on Monday, December 12, after the company said that it is planning to expand its retail footprint by over 30 percent in the next calendar year by adding 52 showrooms.
This strategy is in accordance with Kalyan Jewellers' Vision 2025, which set a 50 percent sales contribution from non-South markets as its goal.
During Monday’s trade, the stock opened at a price of Rs. 112 per share against the previous close of Rs. 110.65 per share and grew further to touch an intraday high of Rs. 114.45.
The stock was trading at ₹113, up by 2.12 percent, at 10:45 a.m. on the NSE.
The stock touched a 52-week high of Rs. 116.40 on December 5, 2022 and a 52-week low of Rs. 55.05 on June 20, 2022, indicating that at the current level, the stock is trading over 105 percent above its 52-week low and just 3 percent below its 52-week high.
The stock has shown tremendous growth of nearly 93 percent in the last six months. Moreover, in the past one year, it has given a positive return of over 60 percent. In the last five years, the stock has gained almost 50 percent.
The expansion will mainly focus on the non-South region, which currently contributes 35 percent to the Indian business. It plans to scale up existing operations in all the metros and is also looking to extend its geographical footprint in tier II and III markets in the north, east and western regions.
On a global level, Kalyan Jewellers is witnessing positive demand momentum and buoyant customer sentiment in the middle-eastern business which contributes around 17 percent to its consolidated revenue.
The company is looking at initiating a pilot franchise model in the region, post which, a robust expansion plan will be laid out for its international operations, it said in an official statement.
Last month, the company reported a 54.02 percent growth in consolidated profit after tax (PAT) at ₹105.92 crore during the quarter that ended September 30. The figures for the same stood at ₹68.77 crore during the corresponding period of the previous financial year.
In the quarter under review, the company's operating revenue increased by 20.22 percent to ₹3,472.91 crore from ₹2,888.69 crore in the same quarter last year.
Established in 2009, Kalyan Jewellers is a small-cap company with a market capitalisation of Rs. 11,397.54 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.