Buy Kalyan Jewellers Ltd For Target Rs.875 By Motilal Oswal Financial Services Ltd
Strong double-digit SSSG
Kalyan Jewellers (KALYAN) released its pre-quarterly update for 3QFY25. Here are the key takeaways:
Company-level performance
* KALYAN reported consolidated sales growth of ~39% YoY (est. 38%; 37% in 2QFY25 and 35% in 3QFY24), maintaining strong momentum across its markets in India and the Middle East.
* On 31st Dec’24, the total number of stores stood at 349, with 253 stores of Kalyan India, 59 stores of Candere, 1 store in the US, and 36 stores of Kalyan in the Middle East.
* KALYAN plans to open 30 Kalyan showrooms and 15 Candere showrooms in India in 4QFY25.
* In FY26, KALYAN plans to launch 170 showrooms for Kalyan and Candere formats - 75 Kalyan showrooms (all FOCO) in non-South India regions, 15 Kalyan showrooms (all FOCO) across South India and international markets, and 80 Candere showrooms in India.
* The company has already started signing LOIs for FOCO showrooms planned for FY26 in India and international markets.
India division
* India business grew ~41% YoY (est. 41%) during the quarter, compared to 39% YoY growth in 2QFY25 and 40% YoY growth in 3QFY24.
* Revenue growth was driven by strong festive and wedding demand across both gold and studded categories.
* Same-store sales growth (SSSG) was 24% (est. 21%) during the quarter, compared to 23% in 2QFY25 and 11% in 3QFY24.
* The company added 24 new Kalyan FOCO showrooms and 23 Candere showrooms in India during the quarter.
The Middle East
* Revenue grew ~22% YoY in 3QFY25.
* The region contributed 11% to consol. revenue in 3QFY25.
* Kalyan opened its first COCO showroom in the US during the quarter.
Candere
* Candere recorded revenue growth of ~89% YoY in 3QFY25.
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