- Since its listing in March ’21, the company has gunned out 69% annual returns. - Revenue has grown 29% since FY21. - Net profits have zoomed 153% since FY21.
The company’s total debt has more than halved from Rs 3,590 crore in FY20 to Rs 1,563 crore in the first half of FY24.
The Kerala-based jewellers’ RoCE has surged from 7% in FY21 to 19.2% in the second quarter of FY24. Note: The RoCE of all new company-owned showrooms is over 25%!
- From a single showroom in Kerala in 1993 to 175 stores as of the second quarter of FY24. - 56% of stores are in non-south Indian states
Adoption of franchise-owned, company-operated (FOCO) model since FY22 has ensured capital efficiency. 55 stores under this model.
Recognising India’s localised nature of jeweller consumption, Kalyan tailors its designs to match regional preferences.
Its share of the organised jewellery sector is likely to reach 40% by 2025. It was 32% in 2020.
Kalyan faces intense competition from giants like Titan and local players. Additionally, they are trading at a high P/E of 69.5 times, making the stock expensive.