Kalyan Jewellers’ spectacular quarterly update sparks a dazzling 11% stock surge

Kalyan Jewellers India Limited has reported a quarterly update for Q2FY24 today. After the quarterly update today shares of the company have surged by over 11%. The company’s strong revenue growth in Q2FY24 was led by operating momentum in both India and the Middle East. It recorded consolidated revenue growth of 27% for the recently concluded quarter when compared to the same period in the previous financial year, and 29% revenue growth in the first half of the current financial year when compared to the same period in the prior year.

India operations recorded revenue growth of 32% for Q2FY24 as compared to Q2FY23, despite the Adhik Maas period falling in the quarter from the 3rd week of July until the 3rd week of August. This growth was driven by healthy same-store sales growth across all the key markets in the country. Non-south markets recorded higher revenue growth largely due to the greater number of showrooms launched in that region over the last twelve months. Overall, the first half of the current financial year witnessed 33% revenue growth in India when compared to the same period in the prior year.

During the recently concluded quarter, the company added 13 new showrooms across non-south markets. It plans to launch a further 26 showrooms in the next 40 days, as part of the previously announced showroom roll-out plan. This will take the total number of new showrooms launched during the current financial year to 51 by Diwali.

The company launched the first franchised showroom in the Middle East region during the recently concluded quarter and has signed an additional 5 LOIs for franchised showrooms in the region. Middle East contributed 14% to the company’s consolidated revenue for the recently concluded quarter.

As of September 30, 2023, the company’s total number of showrooms across India and the Middle East stood at 209. In the last trading session, the stock closed at Rs 234.30. Today it opened at Rs 239.05 and closed around Rs 258.15, up by 10.18%. Today it hit a day high of Rs 261.05 and just missed crossing the all-time high of Rs 261.95, it has a 52-week low of Rs 90. The company currently has a market capitalization of approximately Rs 26,600 crore. Over the past one-year shares of the company have given a multibagger return of around 160%.

Kalyan Jewellers India Ltd designs, manufactures and sells a range of gold, studded and other jewellery products across various price points.

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