In a land where conversations about gold are as common as cups of chai, Kalyan Jewellers stands as a prominent figure in India’s love affair with this precious metal. In a country where gold isn’t just a shiny metal but also a trusted way to save for life’s unforeseen twists – a bit like our “Plan B” – Kalyan Jewellers has earned its place as a reliable custodian of our golden dreams. With a hint of Indian humor, we often say, “When life hands you lemons, swap them for gold!” Kalyan Jewellers, known for its timeless craftsmanship and an extensive range of exquisite designs, makes this transition not only possible but also delightful.
As of January 10, 2024, Kalyan Jewellers has expanded its presence to encompass 22 States and Union Territories in India, as well as four countries in West Asia. They are set to introduce 33 new showrooms by the time of Diwali.
So, let’s try and understand Kalyan Jewellers’ growth trajectory and understand if it is a good investment option.
About Kalyan Jewellers India
Kalyan Jewellers, established by Mr. T.S. Kalyanaraman, stands as a prominent player in India’s jewelry landscape, capturing a noteworthy 6% share in the organized jewelry market as of FY20. The brand presents a diverse collection to cater to varied customer preferences, spanning wedding jewelry, mid to high-end pieces, and budget-conscious regional jewelry.
Their lineup includes renowned brands like Nimah, Tejasvi, and Ziah, addressing every occasion. In terms of revenue composition, gold products make up 76%, studded products 22%, and other products 2%.
Beyond India, Kalyan Jewellers has expanded its reach, with a presence in five Middle Eastern countries through 33 showrooms. They employ a customer-focused approach with “My Kalyan” centers spanning approximately 990 locations across 21 Indian states and union territories.
It competes with notable peers such as Tanishq, Malabar Gold & Diamonds, and PC Jeweller, offering customers a diverse array of choices in the world of fine jewelry.
Kalyan Jewellers not only sources gold externally but also operates in-house manufacturing facilities in Sharjah and Oman. The company is committed to expansion, particularly in non-south markets, with a strategic goal of achieving a 50% market share by FY24 or FY25.
Q1 Fy2024 Key Points And Summary:
- Kalyan Jewellers achieved over 34% revenue growth in Q1FY24 compared to Q1FY23, driven by strong underlying operational performance.
- New customer acquisitions remained robust, accounting for more than 36% of the customer base.
- The company expanded its presence by opening 12 new showrooms in India during the quarter.
- Showroom gross margins increased year-on-year and remained stable every quarter.
- A higher proportion of revenue now comes from franchised showrooms, resulting in lower overall gross margins and EBITDA margins.
- Despite this, there was an improvement in the Profit After Tax (PAT) margin, leading to higher PAT growth compared to revenue growth.
- Slight decline in gross margin attributed to a higher share of plain gold revenue.
- Consumer sentiment remains robust, contributing to a significant 22% YoY revenue growth primarily driven by SSSG (Same-store sales Growth).
Promoters: Promoters have consistently held the majority of shares, maintaining a strong presence of around 60.5% throughout the past year.
Public: The public’s shareholding has remained relatively constant, ranging from 33% to 34.7%. This suggests that the general public’s interest in the company has not significantly fluctuated over the year.
Foreign Institutional Investors: FIIs displayed some volatility in their holdings over the year, with a decline from around 4.8% in March 2021 to approximately 2.87% in September 2021. A remarkable surge occurred in December 2022, with their stake rising to 28.72% before stabilizing at 29.65% in June 2023.
Domestic Institutional Investors: DIIs showed a more consistent trajectory, with a minor dip in September 2022 before steadily climbing to 5.17% in June 2023.
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| When | Maximum Price | Minimum Price |
| January 2024 | 409.32 | 355.93 |
| February 2024 | 417.67 | 363.19 |
| March 2024 | 426.20 | 370.61 |
| April 2024 | 413.78 | 359.81 |
| May 2024 | 407.67 | 354.49 |
| June 2024 | 422.34 | 367.26 |
| July 2024 | 418.12 | 363.58 |
| August 2024 | 434.85 | 378.13 |
| September 2024 | 452.24 | 393.25 |
| October 2024 | 443.37 | 385.54 |
| November 2024 | 456.67 | 397.11 |
| December 2024 | 468.09 | 407.04 |
In January 2024, Kalyan Jewellers’ share price is anticipated to fluctuate between a maximum of ₹409.32 and a minimum of ₹355.93, with projections continuing through the year. The stock is predicted to reach its highest in December at ₹468.09.
Presently, the market capitalization stands at ₹39,070 Cr., while the current stock price is ₹379 as of January 10, 2024, with a high/low range of ₹392/101. The stock’s P/E ratio is 75.3, and its book value is ₹37.4.
| When | Maximum Price | Minimum Price |
| January 2025 | 477.45 | 367.27 |
| February 2025 | 489.69 | 376.69 |
| March 2025 | 508.79 | 391.38 |
| April 2025 | 498.82 | 383.71 |
| May 2025 | 484.29 | 372.53 |
| June 2025 | 506.08 | 389.29 |
| July 2025 | 496.16 | 381.66 |
| August 2025 | 511.50 | 393.46 |
| September 2025 | 529.41 | 407.24 |
| October 2025 | 543.17 | 417.82 |
| November 2025 | 556.75 | 428.27 |
| December 2025 | 570.67 | 438.98 |
In 2025, Kalyan Jewellers’ share price is expected to witness a gradual upward trend. Starting at a maximum of ₹477.45 in January, it is projected to reach its peak at ₹570.67 in December, with intermittent fluctuations throughout the year.
The minimum prices range from ₹367.27 to ₹438.98, indicating potential growth and stability in the market. Investors may find opportunities in this anticipated positive trajectory.
| When | Maximum Price | Minimum Price |
| January 2026 | 587.79 | 452.14 |
| February 2026 | 602.86 | 463.74 |
| March 2026 | 626.37 | 481.82 |
| April 2026 | 614.09 | 472.38 |
| May 2026 | 596.20 | 458.62 |
| June 2026 | 623.03 | 479.26 |
| July 2026 | 610.82 | 469.86 |
| August 2026 | 629.71 | 484.39 |
| September 2026 | 651.75 | 501.34 |
| October 2026 | 668.69 | 514.38 |
| November 2026 | 685.41 | 527.24 |
| December 2026 | 702.55 | 540.42 |
Anticipated to continue its positive trajectory, Kalyan Jewellers’ share prices in 2026 are forecasted to rise steadily. Starting at a maximum of ₹587.79 in January, the prices are expected to peak at ₹702.55 by December, with fluctuations ranging from ₹452.14 to ₹540.42. This outlook suggests a promising investment potential, showcasing the company’s growth prospects throughout the year.
| When | Maximum Price | Minimum Price |
| January 2027 | 716.60 | 551.23 |
| February 2027 | 734.97 | 565.36 |
| March 2027 | 763.63 | 587.41 |
| April 2027 | 748.66 | 575.89 |
| May 2027 | 726.86 | 559.12 |
| June 2027 | 759.56 | 584.28 |
| July 2027 | 744.67 | 572.82 |
| August 2027 | 767.70 | 590.54 |
| September 2027 | 794.57 | 611.21 |
| October 2027 | 815.23 | 627.10 |
| November 2027 | 835.61 | 642.78 |
| December 2027 | 856.50 | 658.85 |
| When | Maximum Price | Minimum Price |
| January 2028 | 873.63 | 672.02 |
| February 2028 | 896.03 | 689.26 |
| March 2028 | 930.98 | 716.14 |
| April 2028 | 912.72 | 702.09 |
| May 2028 | 886.14 | 681.64 |
| June 2028 | 926.01 | 712.32 |
| July 2028 | 907.86 | 698.35 |
| August 2028 | 935.94 | 719.95 |
| September 2028 | 968.69 | 745.15 |
| October 2028 | 993.88 | 764.52 |
| November 2028 | 1,018.73 | 783.64 |
| December 2028 | 1,044.19 | 803.23 |
| When | Maximum Price | Minimum Price |
| January 2029 | 1,065.08 | 819.29 |
| February 2029 | 1,092.39 | 840.30 |
| March 2029 | 1,134.99 | 873.07 |
| April 2029 | 1,112.74 | 855.95 |
| May 2029 | 1,080.33 | 831.02 |
| June 2029 | 1,128.94 | 868.42 |
| July 2029 | 1,106.80 | 851.39 |
| August 2029 | 1,141.04 | 877.72 |
| September 2029 | 1,180.97 | 908.44 |
| October 2029 | 1,211.68 | 932.06 |
| November 2029 | 1,241.97 | 955.36 |
| December 2029 | 1,273.02 | 979.25 |
| When | Maximum Price | Minimum Price |
| January 2030 | 1,298.48 | 998.83 |
| February 2030 | 1,331.77 | 1,024.44 |
| March 2030 | 1,383.71 | 1,064.39 |
| April 2030 | 1,356.58 | 1,043.52 |
| May 2030 | 1,317.07 | 1,013.13 |
| June 2030 | 1,376.34 | 1,058.72 |
| July 2030 | 1,349.35 | 1,037.96 |
| August 2030 | 1,391.08 | 1,070.06 |
| September 2030 | 1,439.77 | 1,107.52 |
| October 2030 | 1,477.20 | 1,136.31 |
| November 2030 | 1,514.13 | 1,164.72 |
| December 2030 | 1,551.99 | 1,193.84 |
Kalyan Jewellers India Financial Condition: Last 5 Years
| 2019 | 2020 | 2021 | 2022 | 2023 (TTM) | |
|---|---|---|---|---|---|
| Sales | 9,771 | 10,101 | 8,573 | 10,818 | 14,071 |
| Expenses | 9,151 | 9,302 | 7,949 | 9,965 | 12,906 |
| Op. Profit | 620 | 799 | 624 | 853 | 1,165 |
| OPM % | 6% | 8% | 7% | 8% | 8% |
| Other Inc. | 42 | 80 | 45 | 38 | 5 |
| Interest | 418 | 419 | 405 | 360 | 353 |
| Deprec. | 224 | 239 | 225 | 232 | 245 |
| PBT | 21 | 221 | 39 | 299 | 572 |
| Tax % | 123% | 36% | 115% | 25% | 24% |
| Net Profit | -5 | 142 | -6 | 224 | 432 |
| EPS | -0.04 | 1.70 | -0.06 | 2.18 | 4.20 |
| Div. Payout | 0% | 0% | 0% | 0% | 12% |
Over the last five years, Kalyan Jewellers India has demonstrated commendable financial performance. Sales have consistently grown, reaching ₹14,071 Crores in the trailing twelve months (TTM), reflecting a compounded sales growth of 23%. Operating profit has increased, yielding an 8% operating profit margin. The company’s net profit has also shown robust growth, with a 30% compounded growth over five years, reaching ₹432 Crores in the TTM. The stock price has surged, posting an impressive 216% return over the last year. The return on equity has steadily improved, standing at 13% for the last year, showcasing the company’s financial strength and shareholder value.
FAQs
What Is The Market Cap Of the Kalyan Jewellers?
Kalyan Jewellers has a market capitalization of ₹39,070 crore, highlighting its substantial position in the jewelry industry.
It’s projected that the share price could range from ₹438.98 (minimum) to ₹570.67 (maximum) by December 2025.
What Is Kalyan Jewellers’ PE Ratio?
The P/E ratio is 75.3.
Also read:
Should One Invest In Kalyan Jewellers?
Kalyan Jewellers‘ financial condition, as reflected in the provided data, offers a mixed but generally positive picture for investors. Over the years, the company has consistently increased its sales, reflecting strong demand for its products. Moreover, its operating profit margins have shown improvement, reaching 8% in March 2023, indicating effective cost management and operational efficiency. This bodes well for profitability.
However, there are areas warranting scrutiny. Notably, there was a significant drop in other income from ₹80 crores in March 2022 to ₹5 crores in March 2023. This decline could potentially impact overall profitability and should be investigated further. Furthermore, while the company has demonstrated impressive profit growth, its net profit margins remain relatively thin. Additionally, the recent entry into dividend distribution, albeit at a modest 12% payout, might be perceived as a cautious approach, leaving investors hoping for more substantial returns somewhat unsatisfied.
The stock’s high P/E ratio of 75.3 may also raise concerns among value-oriented investors, as it implies that the stock may be trading at a premium. It suggests a high level of investor optimism and expectations for future growth, which places a certain level of pressure on the company to meet these expectations.
Nevertheless, Kalyan Jewellers’ healthy financial ratios, including ROCE and ROE, showcase efficient capital utilization and a commitment to creating shareholder value. The compounded profit growth rates underscore the company’s consistent performance over time.
In conclusion, while Kalyan Jewellers exhibits notable strengths in its sales growth, profitability, and operational efficiency, investors should remain cautious about factors like other income, net profit margins, and the relatively high stock valuation. A balanced investment approach, considering both growth potential and potential risks, is advisable in this context.
What did we learn?
- 1 About Kalyan Jewellers India
- 2 Q1 Fy2024 Key Points And Summary:
- 3 SHAREHOLDING PATTERNS
- 4 How to purchase Kalyan Jewellers shares?
- 5 Kalyan Jewellers Share Price Target 2024 To 2030
- 5.1 Kalyan Jewellers Share Price Target 2024
- 5.2 Kalyan Jewellers Share Price Target 2025
- 5.3 Kalyan Jewellers Share Price Target 2026
- 5.4 Kalyan Jewellers Share Price Target 2027
- 5.5 Kalyan Jewellers Share Price Target 2028
- 5.6 Kalyan Jewellers Share Price Target 2029
- 5.7 Kalyan Jewellers Share Price Target 2030
- 6 Kalyan Jewellers India Financial Condition: Last 5 Years
- 7 FAQs
- 8 Should One Invest In Kalyan Jewellers?
