Kalyan Jeweler Stock Price: In the ups and downs of the market, the return chart of all the stocks listed recently has deteriorated. Many of these are even trading below their IPO price. However, some of these stocks are fundamentally strong and have scope for higher returns from the current prices. Among them, Kalyan Jeweler is a share in the jewelery segment. Brokerage house ICICI Securities has a strong outlook. The brokerage says that the March quarter has been better for the company and further growth is expected. It will also get the benefit of demand in the jewelery industry.
Company’s profit expected to increase
Brokerage house ICICI Securities has an investment advice in Kalyan Jeweler with a target price of Rs 100. The current price of the share is Rs 61. In this sense, 64 percent return is possible in this. According to the brokerage, the March quarter has been better for Kalyan Jeweller. Good growth was also seen in the non-south market. Margins are improving and this trend is expected to continue further. The focus of the company is on increasing the number of stores. Expansion is happening in the new market. The company’s focus is on the brand. The company is also working on the franchise model, which if successful, will bring good growth in profits. The company will also get the benefit of increasing demand in the industry. The brokerage house says that the organized sector will also get the benefit of having a hallmarking mandate.
March quarter better for the company
Kalyan Jeweler’s revenue (India business) declined 8 percent year-on-year to Rs 2400 crore in the March quarter. The non-south market has grown at 8 per cent year-on-year. Whereas in South Market business there was a decline of 15.9 fees. The revenue CAGR for 2 years is 21%. The company is also gradually increasing its market share. The company’s gross margin has improved by 57bps year-on-year to 15.2 percent. EBITDA margin stood at 7.8 percent.
The EoP store count is 124.
30% cheaper than issue price
Kalyan Jeweler was listed on the stock market on 26 March last year. The company had kept the share price under the IPO at Rs 87, while it was listed at Rs 74. On the day of listing, it closed at Rs 75.30, weakening by 13.5 per cent. Right now it is at Rs 61. That is, it has declined by 30 percent from the issue price. The stock touched a record high of Rs 90 on 9 June 2021. While the record low is Rs 55.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of digitnews.in. Markets are risky, so take expert opinion before investing.)