Kalyan Jewellers shares jump 12% after Q2 results, strong commentary; UBS sees stock at ₹900

Résumé détaillé

Kalyan Jewellers' management struck an optimistic note on demand, stating that the ongoing festive quarter had started on a strong footing. The company said it was encouraged by the growth witnessed during Navratri and Dhanteras and remained upbeat about the upcoming wedding season.

Shares of Kalyan Jewellers India Ltd. will be in focus on Wednesday, November 11, after the jewellery retailer reported strong results for the September quarter, with healthy revenue growth and a sharp increase in net profit, which was aided by an exceptional item. Brokerage firm UBS has maintained a "Buy" rating on the stock with a price target of ₹900.

During the September quarter, Kalyan Jewellers reported a 31.4% increase in its consolidated revenue, which crossed the mark of ₹10,000 crore. Net profit increased by 63.6% from last year to ₹427 crore, which was aided by an exceptional gain of ₹73 crore after the sale of a non-core land parcel. Adjusted for that too, the profit figure would be higher than last year.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter grew by 29.7% from the quarter gone by last year to ₹644.7 crore, while margins remained stable at 6.25% from 6.33% last year.

Kalyan Jewellers' management struck an optimistic note on demand, stating that the ongoing festive quarter had started on a strong footing. The company said it was encouraged by the growth witnessed during Navratri and Dhanteras and remained upbeat about the upcoming wedding season.

UBS has maintained its "buy" rating for Kalyan Jewellers with a price target of ₹900. In its initial assessment of the results, UBS called the results in-line, but viewed the quarter positively.

Shares of Kalyan Jewellers ended 3.1% higher on Monday at ₹611. The stock is up 27% so far this year.

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