Despite receiving ‘buy’ ratings from prominent brokerages, Kalyan Jewellers saw its shares decline by 1.3 percent to Rs 254.8 as of 12:11 pm.
HSBC issued a ‘buy’ call on the stock, setting a target price of Rs 300 per share. The brokerage noted that Kalyan Jewellers had surpassed consensus sales expectations and commended the company for its asset-light approach to network expansion, which is yielding consistent positive results.
Citi maintained its ‘buy’ rating on the stock with a target price of Rs 230 per share. The brokerage highlighted the company’s stable gross margins on a year-on-year (YoY) basis at the showroom level.
Kalyan Jewellers reported a significant revenue growth of 33 percent YoY in the July-to-September quarter, as indicated in its Q2FY24 earnings update. This growth was driven by strong operational performance, with robust same-store sales growth across key markets, even during a period that included the Adhik Maas, which typically impacts sales negatively.
The company’s non-south markets experienced higher revenue growth, primarily attributed to the opening of several new showrooms over the past year. During the quarter, Kalyan Jewellers added 13 new showrooms in non-south markets, and it has ambitious plans to launch 26 more within the next 40 days, aiming to achieve a total store count of 51 by Diwali.
