Kalyan Jewellers shares zoom 12% on block deals

Shares of Kalyan Jewellers India surged over 12% on Friday amid large block deals. As many as 22 lakh shares changed hands over the counter on the BSE in the first three hours of trade so far, compared with two-week average volume of 3.94 lakh scrips. However, the name of buyers and sellers involved in the deal cannot be ascertained at the moment.

Kalyan Jewellers shares opened 4.3% higher at ₹119.25 against the previous closing price of ₹114.30 on the BSE. During the trade so far, the jewellery stock rallied as much as 12.5% to ₹128.55 level, while the market capitalisation jumped to ₹13,164 crore.

At the current price level, the stock trades 4% lower than its 52-week high of ₹134 touched on December 29, 2022, while it has rebounded 132% from its 52-week low of ₹55.25 hit on June 21, 2022.

The midcap jewellery stock has delivered 115% returns to its shareholders in the last one year as compared to 29% rise in the S&P BSE Midcap index. However, the stock seemed to have lost momentum in the calendar year 2023, with the share price falling nearly 1% on year-to-date (YTD) basis. In the last three months, Kalyan Jewellers shares rose nearly 14%, while it climbed 18% in a month.

For January-March quarter of 2023, Kalyan Jewellers India posted a 3.11% decline in its consolidated net profit at ₹697.99 crore against profit of ₹720.40 crore in the year ago quarter, dented by higher expenses.

However, total income rose to ₹3,396.42 crore in Q4FY23, from ₹2,868.52 crore in the year-ago period, driven by new showroom launches in non-south markets.

The total expenses remained higher at ₹3,268.47 crore, as against Rs 2,772.64 crore in Q4FY22.

At the operational front, Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) rose 17.5% to ₹256.7 crore from ₹218.5 crore in the corresponding period last year. The EBITDA margin stood at 7.6%.

For the full financial year 2023, consolidated profit nearly doubled to ₹431.93 crore, from ₹224.03 crore in the previous fiscal, despite a one-time exceptional pre-tax write off of around ₹33 crore relating to the divestment of certain non-core assets. 

Total income increased to ₹14,109.33 crore in FY23, from ₹10,856.22 crore in the previous year. The company generated 27% revenue growth from the Middle East region in Q4FY23, as compared to the same period in the previous year. The region contributed approximately 16% to its consolidated revenue.

The board of the company has also recommended a final dividend of ₹0.50 per equity share, aggregating to 5% of face value of ₹10 each, for the financial year ended March, 31, 2023.

During the quarter under review, the company added 11 new ‘Kalyan’ showrooms (9 franchised, 2 owned) across non-south markets, taking the total number of showrooms in India to 147 as on March 31, 2023. Going forward, the company expects to open 15 new showrooms across non-south markets over the coming 3 months as part of its previously communicated vision of launching 52 new showrooms during the current year. As on March 31, 2023, the total number of showrooms across India and the Middle East stood at 182.

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