This Jewellery stock, which deals in the designs, manufacture and sells a range of gold, studded and other products related to jewellery across price points, plans to launch 170 new stores by FY26.
Share Price Movement
In the trading session, Kalyan Jewellers India Ltd‘s share price were trading at Rs. 457.60 per share, which is 0.28 percent lower than the previous closing price of Rs. 458.90 per share.
In the past year, the stock has delivered around 13.18 percent and has outperformed the Nifty Index. From its 52 week high of Rs. 794.60 per share, it declined by ~42 percent to the current market price.
Future Outlook
Kalyan Jewellers plans to expand aggressively in FY26 by plans to launch 170 new showrooms, under which 90 from the Kalyan brand and the remaining 80 under Candere.
The company has already completed Letter of Intents (LOI) for store openings in the first half of FY26. In the Q4FY25, it is on track to open 30 Kalyan showrooms and 15 Candere showrooms.
Expansion in international markets continues, with the first U.S. showroom already launched. They aim to achieve Rs. 1,000 crore in revenue from Candere within the next two to three years. Additionally, it is reducing debt and asset-based finance. It further expects operating leverage to drive higher profit margins in the coming years.
Q3FY25 Financial Performance
In its latest filing for the quarter ending December 2024, the company reported a 39.51 percent rise in revenue, reaching Rs. 7,287 crore compared to Rs. 5,223 crore in Q3FY24. On a quarter-over-quarter basis, the operational revenue rose by 20.14 percent from Rs. 6,065 crore in Q2FY25.
During the same period, net profit increased by 21.66 percent to Rs. 219 crore in Q3FY25, compared to Rs. 180 crore in Q3FY24, and increased by 68.46 percent from Rs. 130 crore in Q2FY25. Kalyan recognises the revenue from a single segment, which is the Jewellery Business as of the December 2024 quarter.
Gold Revenue has grown by 37 percent to Rs. 4,405.9 crore and the Studded Revenue jumped by 54 percent to Rs. 1,883.8 crore in Q3FY25. The Studded revenue growth outpaced the gold revenue. As per various sources, the studded jewellery (stones attached to gold or jewelry) holds higher margins than plain gold jewellery.
Company Profile, Promoter Pledge & Franchisee Model
Kalyan Jewellers was founded in 1993 by T.S. Kalyanaraman. It is one of the leading Indian jewellery retailers and operates over 140 showrooms across India and West Asia, offering a wide range of gold and studded jewellery products. They have around 253 showrooms as of Q3FY25. Kalyan has a market share of ~7 percent in the organised jewellery as per MOFSL. The promoters pledged shares for the December 2024 quarter stood at 19.32 percent.
The company is focusing towards a Franchisee Model with FY25 target stood at 200+ showrooms and currently stands at around 177 showrooms with Kalyan Stores in India and the Middle East, and Candere. They plan to leverage the ‘Kalyan’ brand to utilise the resources of the franchisee owner.
Written by – Santhosh S
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