Multibagger stock: Kalyan Jewellers achieves over 280% return in 10 months; up 355% from IPO price
Kalyan Jewellers India's stock price surged by 284% to ₹395 per share, with record highs each month since May 2023. The company's financial performance improved due to higher gold prices. In Q3FY24, revenue increased by 34% to ₹5,223 crore, with a PAT growth of 22%.
Kalyan Jewellers, one of India's largest jewellery companies, has witnessed a remarkable surge in its stock price since April 2023, consistently reaching new record highs each month.
This impressive performance is largely attributed to a significant increase in gold prices, resulting in improved price realisation, improved financial performance in recent quarters, and a strong emphasis on expanding its market presence.
Starting from ₹102.95 apiece in April last year, the company's shares have surged by 284% to reach the current value of ₹395 per share. On March 02, the stock hit an all-time high of ₹419 per share.
Notably, the stock finished the last eight out of ten months in the green, with August 2023 marking the highest monthly gain at 45%, followed by a 40% rally in June.
Kalyan Jewellers' shares debuted on March 26, 2021, at ₹75.3 per share, compared to the issue price of ₹87. Despite a challenging first year, ending with a 21.26% decrease in value to ₹68.5, the stock rebounded in CY22, posting a solid gain of 85%.
This momentum continued into CY23, with a whopping return of 180%, and the stock has already risen by 12% in the current year. Taking the stock's current value into account, it is up by 425% from its listing price and 355% from its IPO price.
For the December quarter (Q3FY24), the company recorded consolidated revenue of ₹5,223 crore, up by 34% as compared to ₹3,884 crore in the corresponding period of the previous year. The consolidated PAT for Q3 FY24 stood at ₹180 crore as against a PAT of ₹148 crore for the corresponding period in the previous year, a growth of 22%.
During the quarter, Kalyan Jewellers added 22 new 'Kalyan' showrooms in India. Additionally, the company completed signing LOIs for the 80 showrooms planned for FY 2025, with a significant majority of these being established under a revised franchise model with further improved economics for Kalyan.
At the end of the third quarter, the company boasted a total of 235 showrooms spread across India and the Middle East.
Going forward, the proportion of organised retail in the jewellery sector is set to continue, driven by the marketing efforts of organised retailers. Estimates suggest that organised players' share is expected to reach 60% by 2025. Additionally, sales of wedding jewellery are projected to rise in the coming years, along with daily and fashion wear pieces.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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