Kalyan Jewellers trades lower despite ‘buy’ ratings from HSBC, Citi

Kalyan Jewellers shares traded down 1.3 percent at Rs 254.8 by 12.11pm, despite a ‘buy’ rating from brokerages.

HSBC has a ‘buy’ call on the stock with a target price of Rs 300 per share. It said that consolidated sales of Kalyan Jewellers exceeded the consensus expectations. The brokerage firm said that Kalyan Jewellers is following an asset-light network expansion and has begun delivering consistent results.

Also read Kalyan Jewellers to launch 33 more showrooms in India before Diwali

Citi kept the ‘buy’ rating on the stock with a target price at Rs 230 per share. The brokerage firm said that gross margins for the company have remained stable on a year-on-year (YoY) basis at the showroom level.

Kalyan Jewellers witnessed a revenue growth of 33 percent YoY during the July-to-September quarter, said the company in its Q2FY24 earnings update. The growth was led by robust operating momentum on the ground with healthy same-store sales growth across all the key markets despite the Adhik Maas period falling in the period, said the company.

Non-south markets recorded higher revenue growth largely due to the greater number of showrooms launched in over the last 12 months.

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Kalyan Jewellers added 13 new showrooms across non-south markets during the quarter and it plans to launch 26 more over the next 40 days, taking the total store count to 51 by Diwali.

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