Buy Kalyan Jewellers Ltd For Target Rs. 625 by Motilal Oswal Financial Services Ltd
Strong double-digit SSSG growth
Kalyan Jewellers (KALYAN) released its pre-quarterly update for 4QFY25. Here are the key takeaways:
Company level
* KALYAN reported consolidated sales growth of ~37% YoY (est. 36% in 4QFY25, 40% in 3QFY25, and 34% in 4QFY24), primarily driven by robust wedding demand.
* On 31st Mar’25, the total number of stores stood at 388, comprising 278 Kalyan India stores, 73 Candere stores, one store in the US, and 36 Kalyan Middle East stores.
* KALYAN is witnessing encouraging trends in advance collections for both Akshaya Tritiya and wedding-related purchases for the festive/wedding season. The company also opened three new showrooms in the first week of Apr’25.
* In FY26, KALYAN plans to open 170 showrooms across its Kalyan and Candere formats. This includes 75 Kalyan showrooms (all FOCO) in non-South India, including five larger-format flagship Kalyan showrooms; 15 Kalyan showrooms (all FOCO) across South India and international markets; and 80 Candere showrooms across India.
* The company has completed the signing of LOIs for its FOCO showrooms planned for FY26 across both Indian and international markets.
India division
* The Indian business grew ~39% YoY (est. 39%) during the quarter, compared to 42% YoY growth in 3QFY25 and 38% YoY growth in 4QFY24.
* The quarter recorded healthy same store sales growth of ~21% vs 24% in 3QFY25 and 17% in 4QFY24.
* The company added 25 new Kalyan showrooms in India during the quarter.
The Middle East
* Revenue grew ~24% YoY in 4QFY25.
* The Middle East contributed 12% to consol. revenue of 4QFY25.
Candere
* Candere recorded a revenue decline of ~22% YoY in 4QFY25.
* The company opened 14 Candere showrooms during the quarter.
For More Research Reports : Click Here
For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412
