Buy Kalyan Jewellers India, target price Rs 100: ICICI Securities

ICICI Securities has buy call on Kalyan Jewellers India with a target price of Rs 100. The current market price of Kalyan Jewellers India Ltd. is Rs 60.8. Time period given by analyst is one year when Kalyan Jewellers India Ltd. price can reach defined target.

Kalyan Jewellers India Ltd., incorporated in the year 2009, is a Small Cap company (having a market cap of Rs 6288.47 Crore) operating in Gems and Jewellery sector.

Kalyan Jewellers India Ltd. key Products/Revenue Segments include Diamonds/Gems/Jewellery and Other Operating Revenue for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 2868.52 Crore, down -16.92 % from last quarter Total Income of Rs 3452.56 Crore and down -6.53 % from last year same quarter Total Income of Rs 3068.88 Crore. Company reported net profit after tax of Rs 72.04 Crore in latest quarter.

Investment Rationale
The brokerage cuts earnings estimate by ~6-2% for FY23-FY24E. It models revenue and EBITDA CAGRs of 16% and 25% over FY22-FY24E. It maintains BUY with a DCF-based unchanged target price of Rs100. Key risks: delay in showroom expansion and potentially higher competitive intensity in core south India markets.

Promoter/FII Holdings
Promoters held 60.54 per cent stake in the company as of 31-Mar-2022, while FIIs owned 3.05 per cent, DIIs 1.74 per cent.