Add Kalyan Jewellers, target price Rs 520: ICICI Securities

ICICI Securities has an add call on Kalyan Jewellers India with a target price of Rs 520. The current market price of Kalyan Jewellers is Rs 475. Kalyan Jewellers India, incorporated in 2009, is a Small Cap company with a market cap of Rs 48601.23 crore, operating in the Gems and Jewellery sector.

Kalyan Jewellers' key products/revenue segments include Diamonds/Gems/Jewellery and Other Operating Revenue for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 7318.20 crore, up 20.14% from last quarter Total Income of Rs 6091.48 crore and up 39.57% from last year same quarter Total Income of Rs 5243.21 crore. The company has reported net profit after tax of Rs 218.68 crore in the latest quarter.

The company's top management includes Mr.Vinod Rai, Mr.T S Kalyanaraman, Mr.T K Ramesh, Mr.T K Seetharam, Mr.Salil Nair, Mr.Anish Kumar Saraf, Mr.A D M Chavali, Mr.T S Anantharaman, Ms.Kishori Jayendra Udeshi, Mr.Vinod Rai, Mr.Anil Sadasivan Nair, Mr.T S Kalyanaraman, Mr.T K Ramesh, Mr.T K Seetharam, Mr.Salil Nair, Mr.Anish Kumar Saraf, Mr.A D M Chavali, Mr.T S Anantharaman, Ms.Kishori Jayendra Udeshi, Mr.Anil Sadasivan Nair. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-12-2024, the company has a total of 103 Crore shares outstanding.

Investment Rationale
ICICI Securities' earnings estimates remain unchanged, modelling revenue / EBITDA / PAT CAGR of 28% / 25% / 39% over FY24-27E. The brokerage maintains ADD with DCF-based revised target price of Rs 520. At our target price, the stock will trade at a multiple of 33x FY27E EPS. Key risks include delay in showroom expansion and potentially higher competitive intensity in core South Indian markets.

Promoter/FII Holdings
Promoters held 62.85 per cent stake in the company as of 31-Dec-2024, while FIIs owned 16.37 per cent, DIIs 13.51 per cent.