Kalyan Jewellers Q1 Results Review - Trailblazing Growth: ICICI Securities

The brokerage maintains Add rating on the stock with a DCF-based revised target price of Rs 600.

Customers shop at a Kalyan Jewellers India Ltd.'s store during the occasion of Akshaya Tritiya in Borivali, Mumbai on May 10, 2024. Photo: Vijay Sartape / Source: NDTV Profit

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ICICI Securities Report

Q1 FY25 result continues to inspire confidence in Kalyan Jewellers India Ltd.’s business model (franchise owned company operated) as it continues to outperform competition by gaining market share led by aggressive consumer offers (discount on making charges), higher ad spends and faster retail expansion.

Positively, same-store sales growth in July-24 is tracking better than Q1 FY25 while it has got positive tailwind (from July 23, 2024) led by cut in the custom duty as customers’ footfall rises to benefit from decline in the gold price.

All other key metrics – new customer recruit, average ticket size, retail expansion (to add 35 Kalyan and 20 Candere stores before Diwali), and operating profit margin – are at healthy level. It maintains previous guidance on retail expansion in India; at 130 (80 Kalyan and 50 Candere). Maintain Add.

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ICICI Securities Kalyan Jewellers Q1FY25 Results Review.pdf
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Also Read: Kalyan Jewellers Q1 Results: Revenue, Profit Meet Estimates

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