Multibagger Stock Kalyan Jewellers share price hits fresh record high, up 385% in 13 months. What lies ahead?

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, said that Kalyan Jewellers stock terms witnessed a crisp surge during the greeting session, making a precocious of ₹546; however, from there, immoderate nett booking is seen with prices slipping beneath ₹500. The enactment resembles a shooting prima candlestick pattern; if prices neglect to surpass backmost supra ₹520–530, past prices whitethorn participate consolidation mode, whereas a gaffe beneath ₹480 could besides trigger further nett booking towards ₹460. 

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Brokerage Motilal Oswal successful its caller study from past week, initiated sum connected Kalyan Jewellers, noting that the concern is 1 of India's biggest jewelry retail chains, with a robust web of implicit 217 locations nationwide. Over the adjacent 2 years, the asset-light enlargement (franchise-driven) volition supply the currency flows required to wage down its indebtedness successful India. Best successful class, the FY24 studded ratio of 28% demonstrated the company's grasp of changing lawsuit patterns, including youth-led and non-traditional styles.

With a "buy" standing and a people terms of ₹525—which the banal has already surpassed successful today's session—the home brokerage initiated coverage. 

The brokerage besides emphasized the notable formalisation inclination that the jewelry manufacture has been going through, with the organised marketplace present making up 36-38% of the full jewelry marketplace arsenic opposed to astir 22% successful FY19. During FY19–24, the jewelry marketplace arsenic a full achieved an 8% gross CAGR and reached a marketplace worth of ₹6,400 billion.

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The brokerage firm is bullish astir the jewelry marketplace and sees further, swift changes successful user buying patterns arsenic they determination from local, unorganised to organised channels. This historical inclination is being driven by factors similar rising summons costs, improved buying experiences, much merchandise variety, etc.

The brokerage did, however, gully attraction to definite important concerns, including the volatility of the golden price, the nonaccomplishment of retail portion economics, peculiarly successful emerging nations, superior inefficiencies successful rapidly expanding stores, and competitory unit connected pricing (with respect to charging).

“We completed an fantabulous fiscal twelvemonth and person started the caller twelvemonth connected a beardown enactment contempt continuing volatility successful golden prices. We are witnessing encouraging momentum successful user demand, particularly astir the wedding purchases during the existent quarter," said Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers.

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Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 28 Jun 2024, 02:52 PM IST