Kalyan Jewellers shares jump over 4% to hit all-time high on strong Q3 update

Shares of Kalyan Jewellers India, one of India's largest jewellery companies, spiked 4.40% to hit a fresh all-time high of ₹379.75 apiece during Friday's early trade. This sharp surge came in response to the company's Q3FY24 business update.

In an exchange filing today, the company reported strong performance in terms of both foot traffic and revenue across all its markets in India and the Middle East for the December quarter.

The company said it had achieved this positive operating performance despite multiple headwinds during the quarter, such as extreme volatility in gold prices, a higher number of “Shradh” days compared to the prior year, and flash floods in certain parts of Tamil Nadu.

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In Q3FY24, the company achieved a consolidated revenue growth of 33% compared to the same period in the previous financial year. In India, the company saw revenue growth of 40% during the quarter compared to the same period of last year. This growth was led by robust operating momentum on the ground and healthy same-store sales growth across all the key markets in the country, according to the company's exchange filing. 

During the quarter, Kalyan Jewellers added 22 new 'Kalyan' showrooms in India. Additionally, the company said it had completed signing LOIs for the 80 showrooms planned for FY 2025, with a significant majority of these being established under a revised franchise model with further improved economics for Kalyan.

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In the Middle East, the company continued to witness positive operating momentum. Revenue growth for Q3FY24 came in at 6% when compared to the same period in the previous financial year. The Middle East contributed 13% to the company's consolidated revenue during the quarter. 

The company's digital-first jewellery platform, Candere, recorded a revenue de-growth of 34% during the quarter as compared to the same period of last year. However, the company said it is witnessing encouraging trends in its already-opened seven physical showrooms.

As of December 31, 2023, the company boasts a total of 235 showrooms spread across India and the Middle East. In the upcoming quarter, the company has ambitious plans to expand its footprint by adding 15 new 'Kalyan' showrooms in India, 2 in the Middle East, and an additional 13 'Candere' showrooms.

Stock Performance

Over the last one-year period, shares of Kalyan Jewellers have jumped from ₹123 apiece to ₹363, delivering a multi-bagger return of 195%.

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The shares were listed on March 26, 2021, at ₹75.3 apiece as compared to the issue price of ₹87. At current levels, the stock is trading 317% higher than its IPO price.

Q2FY24 Scorecard

For the September quarter (Q2FY24), the company recorded consolidated revenue of ₹4,415 crore, a growth of 27.12% compared to ₹3,473 crore in the corresponding quarter of the previous year, driven by an acceleration in store expansion.

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The consolidated profit after tax (PAT) for the quarter reached ₹135 crore, reflecting a 27.35% increase from the PAT of ₹106 crore recorded during the same period in the previous year.

At 10:15 AM, the stock was trading with a gain of 2.40% at ₹372.45 apiece. 

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