Shares of Kerala-based Kalyan Jewellers fell 3.5 percent in early trade on Tuesday, January 10, amid what looked like profit-booking. The stock opened at a price of Rs. 125.20 per share and dipped during the morning trade to touch an intraday low of Rs. 120.80.
The fall in shares came after the stock price zoomed 6 percent on Monday on strong Q3 earnings.
On Saturday, the company reported a consolidated revenue growth of approximately 13 percent in the December quarter as compared to the same period of the previous financial year, as the quarter witnessed momentum in footfalls and revenue across all the markets majorly driven by strong festive demand.
The stock touched a 52-week high of Rs. 134.20 on December 29, 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 120 percent above its 52-week low and just 10 percent below its 52-week high.
The stock has shown an enormous growth of 90 percent in the past six months. In the last one year, it has given a positive return of nearly 70 percent.
It was trading at a price of Rs. 121.20 apiece, down by 3.23 percent, at 11:50 a.m. on the NSE.
India (domestic) operations witnessed revenue growth of around 12 percent YoY for Q3FY23 despite a strong base with Q3 of the previous financial year, the official statement mentioned.
While momentum in footfall was broad-based across geographies, non-south markets recorded higher revenue growth largely due to the greater number of showrooms launched in that region over the last twelve months.
The company witnessed gross margin expansion, which grew sequentially in the recently concluded quarter.
The Middle East market, which contributed 16 percent to the consolidated revenue, saw revenue growth of 24 percent as compared to the same quarter during the prior year. This growth was mostly same-store sales driven since the company added only one showroom in the region during the last 12 months.
It added 5 net new ‘Kalyan’ showrooms (all non-south) during the recently concluded quarter, taking the total number of showrooms in India to 136 as on December 31, 2022.
Kalyan Jewellers is a small-cap company with a market capitalisation of Rs. 12,896.26 crore that operates in the gems and 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.