Kalyan Jewellers’ stock jumped by 8.3% in early trading, reaching ₹589.45 per share after five major block deals worth ₹3,585 crore were reported on August 22.
Around 6.6 crore shares, or 6.4% of the company, were traded at a price of ₹539 per share. Highdell Investment likely sold some of its stake to the company’s promoter, Trikkur Sitarama Iyer Kalyanaraman.
Share Purchase Agreement Details:
On August 21, 2024, Kalyan Jewellers announced that Highdell Investment Ltd. had agreed to sell 2.36% of the company’s shares (24,299,066 shares) to the promoter at ₹535 per share, totaling ₹1,300 crore. This deal will increase the promoter’s ownership from 60.59% to 62.95%.
Company’s Strong Performance:
Kalyan Jewellers reported a strong performance for the quarter ending in June, with a 29% year-over-year increase in revenue to ₹468 crore and a 28% rise in net profit to ₹165 crore. The company also saw strong customer acquisition, with new customers making up over 35% of the total.
In Q1 FY25, Kalyan added 13 new showrooms across India, with same-store sales growth of 13% in the South and 11% in non-South regions. The share of studded jewelry increased to over 30% from 29% last year.
Expansion Plans:
Kalyan Jewellers is one of India’s largest jewelry retail chains, with over 217 stores. Initially, the company focused on company-owned stores to build its brand but has shifted to a franchise model since 2023, expanding to 76 stores by FY24. The company plans to open 80 new stores in FY25 through franchises, which will help generate cash flow to repay its ₹6 billion debt in India over the next two years.
Over the last 15 months, Kalyan Jewellers’ stock has surged by 440%. In June, Motilal Oswal, a domestic brokerage firm, set a target price of ₹525 per share for the stock, confident in the jewelry sector’s growth as consumers increasingly prefer organized retailers.
In FY18, the jewelry market was valued at USD 48–50 billion, with organized players holding a 20–22% share. From FY18 to FY24, the overall market grew at a 9–10% CAGR, while the organized market grew at over 17% CAGR. The past three years have been particularly strong, with 20%–30% growth in value for both total and organized segments.
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