Kalyan Jewellers soars 25% in 4 days post Q3 results; up 30% from Jan low

However, still, the stock quotes 31 per cent lower when compared with its all-time high price of Rs 794.60 hit on January 1.

Shares of Kalyan Jewellers have moved higher by 9 per cent to Rs 549 on the BSE in Tuesday’s intra-day trade on back of heavy volumes. In four days, the stock price of the jewellery company soared 25 per cent after the company reported a 22 per cent year-on-year (YoY) jump in consolidated profit after tax (PAT) at Rs 219 crore in December 2024 quarter (Q3FY25). PAT growth would be 44 per cent adjusting for the loss due to reduction in customs duty (announced during the Union Budget in July 2024).

 

At 02:55 PM; Kalyan Jewellers was trading 7 per cent higher at Rs 536.90, as compared to 1.7 per cent rise in the BSE Sensex. A combined 34.52 million representing 3.3 per cent of total equity of the company changed hands on the NSE and BSE.

 

With today’s gain, the stock price of Kalyan Jewellers has recovered 30 per cent from its previous month low of Rs 420.80 touched on January 28, 2025. However, still, the stock quotes 31 per cent lower from its all-time high price of Rs 794.60 hit on January 1.

 

The company’s consolidated revenue grew 40 per cent YoY to Rs 7,287 crore in Q3FY25 as against Rs 5,223 crore in the corresponding period of the previous year.

 

Growth was driven by good traction during the festive and wedding season. The momentum was resilient in January 2025 as well, despite volatility in gold prices. The growth was also supported by the company’s focus on new customer acquisition (33 per cent share of new customers in 3QFY25). Revenue growth in studded (+54 per cent) outpaced gold revenue growth (+37 per cent), leading to an increase in studded share to 30 per cent (27 per cent in Q3FY24).

 

The current quarter (January to March) has started off well despite the volatility in gold prices. The management is upbeat about the ongoing wedding season and expects to end the financial year on a strong note.

 

Kalyan Jewellers is one the largest jewellery retailers in India with a presence in the Middle East and the USA. The company has 349 showrooms across India, USA and the Middle East, with a retail area exceeding 9,08,000 sq. ft.

 

With the successful scale-up of its new franchise businesses (~40 revenue contribution) and sustained success in non-southern markets, the company has established itself as a leading brand in the industry. Its non-south expansion has improved the studded jewelry mix, while asset-light expansion supports cash flow generation for debt repayment and enhances profitability by lowering interest costs. It is also gaining momentum in the Middle East and the US, analysts at Motilal Oswal Financial Services (MOFSL) said in result update. The brokerage firm reiterates BUY rating on the stock with a target price of Rs 625.