I-Sec maintains Add on Kalyan Jewellers, raises target price to Rs 550

ICICI Securities has maintained Add call on Kalyan Jewellers with a target price of Rs 550. The current market price of Kalyan Jewellers is Rs 534.9. Kalyan Jewellers, incorporated in the year 2009, is a Small Cap company (having a market cap of Rs 55377.77 Crore) operating in 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 31-03-2025, the company has reported a Consolidated Total Income of Rs 6222.36 crore, down -14.97% from last quarter Total Income of Rs 7318.20 crore and up 36.34% from last year same quarter Total Income of Rs 4563.73 crore. The company has reported net profit after tax of Rs 187.60 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 31-03-2025, the company has a total of 103 crore shares outstanding.

Investment Rationale
ICICI Securities increases the EBITDA estimates by ~2% for FY27E, modelling revenue / EBITDA / PAT CAGRs of 28% / 32% / 49% over FY254-FY27E. The brokerage maintains ADD with a DCF-based revised target price of Rs 550 (vs Rs 520). At our target price, the stock will trade at a multiple of 35x FY27E EPS. Key risks include delay in showroom expansion and potentially higher competitive intensity in core south India markets.

Promoter/FII Holdings
Promoters held 62.85 per cent stake in the company as of 31-Mar-2025, while FIIs owned 16.89 per cent, DIIs 11.97 per cent.