Among India’s glittering jewellery brands, Kalyan Jewellers has carved out a distinctive space through sheer scale, mass appeal, and regional trust. What started as a humble gold retail business in Kerala has become one of India’s largest jewellery chains, with a footprint that spans metros and tier-2 towns alike.
But as of today, the big question for investors is this — Is Kalyan Jewellers still a compounding gold story, or has the shine dulled beneath its glossy store count and marketing blitz?
Let’s evaluate the stock with facts, not sentiment.
1. What Does Kalyan Jewellers Really Do?
Founded: 1993 by T.S. Kalyanaraman in Thrissur, Kerala
Listed on: NSE/BSE (March 2021 IPO)
Core Business Model:
- Retailer of gold, diamond, and precious stone jewellery
- Operates via company-owned showrooms (not franchisee)
- Offers regional and wedding-focused designs across India and the Middle East
- High focus on customer trust, BIS certification, and price transparency
Presence (as of Q3FY24):
- 256 showrooms across India and 5 GCC countries
- Approx. 75% revenue from South India
- E-commerce arm: Candere.com (wholly owned)
Source: Kalyan Jewellers Investor Presentation Q3FY24
2. How Has the Stock Performed Lately?
| Date | CMP (₹) | 52-Week Range (₹) | Market Cap (₹ Cr) | YTD Return (%) |
|---|---|---|---|---|
| April 15, 2025 | ₹371.10 | ₹105.80 – ₹402.40 | ₹38,300 Cr | +62.4% |
The stock has rallied sharply in the past 12 months, driven by margin expansion, festive sales, and aggressive store openings.
Source: Moneycontrol, NSE India
3. What Do the Financials Say?
| Metric | FY21 | FY22 | FY23 | 9MFY24 |
|---|---|---|---|---|
| Revenue (₹ Cr) | 8,573 | 10,818 | 14,071 | 12,509 |
| EBITDA (₹ Cr) | 501 | 793 | 1,209 | 1,140 |
| Net Profit (₹ Cr) | 229 | 383 | 517 | 568 |
| EBITDA Margin (%) | 5.8% | 7.3% | 8.6% | 9.1% |
| ROE (%) | 8.4% | 13.2% | 15.1% | 16.4* |
| ROCE (%) | 9.8% | 13.8% | 15.5% | 17.2* |
| Net Debt/Equity | 1.2x | 0.9x | 0.6x | 0.4x |
*Annualized for FY24
Kalyan Jewellers’ Margins have consistently improved, while debt has reduced steadily, indicating better working capital management.
Source: Tijori Finance, Screener
4. Peer Comparison: Is It Priced Fairly?
| Company | ROE (%) | EBITDA Margin (%) | Net Debt/Equity | P/E (TTM) | P/B Ratio |
|---|---|---|---|---|---|
| Kalyan Jewellers | 16.4 | 9.1 | 0.4 | 28.5x | 4.2x |
| Titan Company | 26.2 | 12.1 | 0.1 | 70.4x | 21.1x |
| Senco Gold | 14.3 | 8.2 | 0.7 | 22.9x | 3.4x |
| Thangamayil Jewellery | 13.5 | 7.9 | 0.6 | 18.6x | 2.1x |
While Titan remains the benchmark in premium jewellery retail, Kalyan Jewellers is catching up in both profitability and valuation efficiency.
Source: Moneycontrol, Screener.in
5. What’s Driving the Growth?
- Wedding Demand: Jewellery is an emotional purchase in India; post-COVID revenge weddings have boosted demand.
- Rural/Non-Metro Penetration: ~65% of Kalyan Jewellers stores are in non-metro locations
- Trust-led Branding: Brand ambassadors across states (Amitabh Bachchan, Nagarjuna, Katrina Kaif, etc.) boost recall
- Omnichannel Retail: Candere + offline showroom synergy increases customer acquisition
- Working Capital Management: Gold metal loan usage has reduced borrowing costs
The firm’s aggressive expansion strategy now focuses on West and North India.
6. What Are the Risks?
- High Gold Prices: Can reduce footfall or push down average ticket size
- Inventory Heavy Model: Any slowdown in sales risks working capital tightness
- Low Entry Barriers: Jewellery remains a fragmented industry
- Titan Dominance: Tata Group’s jewellery business eats up premium share
- Regulatory Risks: BIS hallmarking mandates and import duty fluctuations
While the brand strength helps mitigate some concerns, the operating leverage magnifies both upside and downside.
7. What’s New in FY24–25?
- Opened 46 new showrooms in FY24, taking total to 256
- Middle East expansion: 7 new stores planned in FY25
- Candere is now profitable, showing 18% YoY GMV growth
- Buyback proposal of ₹275 Cr approved by board in Feb 2025
- Collaboration with Tanishq ruled out: Focus on organic growth
Kalyan Jewellers’ board continues to favor growth over dividends, choosing reinvestment.
8. Capex and Strategy Going Forward
- Planned Capex (FY25–27): ₹1,000 Cr (store addition + tech integration)
- Target of 400 stores by FY27
- Increase Candere’s share to 10% of total revenue
- Launch of jewellery subscription plans and gold savings schemes in FY25
- Focus on gross margin improvement through in-house designs
The strategy is to move from scale to profitability without compromising customer base.
9. What Do Analysts Say?
| Brokerage | Rating | Target Price (₹) | Key Commentary |
|---|---|---|---|
| Axis Securities | Buy | ₹420 | Execution consistent, valuation fair |
| Motilal Oswal | Neutral | ₹390 | Watchful on gold volatility and working capital |
| JM Financial | Buy | ₹435 | Store-level EBITDA impressive, low debt a plus |
Analysts are largely supportive, though cautious about valuations post-run-up.
10. Conclusion: Shining Gold or Lost Story Sold?
Kalyan Jewellers has grown from a southern regional brand into a pan-India story with a presence in the Middle East. With rising store-level profitability, lower debt, and a consistent branding strategy, the fundamentals are intact.
However, execution and gold-price dependence remain key watchpoints. The story isn’t lost—it’s evolving. Whether it shines brighter or gets overshadowed by larger players depends on how efficiently it balances growth, inventory, and margins.
For investors, Kalyan Jewellers isn’t a speculative gold rush—it’s a play on aspirational India, organized retail, and brand-led trust.
Disclaimer: This article is for informational purposes only. Investors should conduct their own research or consult a financial advisor before making any investment decisions.
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