KALYANKJIL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.3

📊 Core Financials & Profitability

Profit Growth: Quarterly PAT rose from ₹185 Cr to ₹256 Cr — a strong 55.4% increase, signaling robust operational momentum.

Return Metrics

ROE: 15.5% and ROCE: 15.7% — solid, reflecting efficient capital deployment.

EPS: ₹7.56 — modest for a ₹515 stock, but improving.

Debt Profile: Debt-to-equity at 0.69 — moderate, typical for retail-heavy businesses with inventory financing.

Dividend Yield: 0.29% — minimal, but consistent with reinvestment strategy.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 68.2 Highly valued vs. industry PE of 28.8 — premium pricing.

P/B Ratio ~11.1 Expensive relative to book value ₹46.3.

PEG Ratio 1.42 Fairly priced growth — not cheap, but not excessive either.

🔍 Conclusion: Valuation is stretched, but justified by strong earnings momentum and brand strength. PEG ratio suggests growth is priced reasonably.

💍 Business Model & Competitive Edge

Core Operations: Kalyan Jewellers is one of India’s largest jewellery retailers, with a pan-India presence and growing international footprint.

Strategic Strengths

Strong brand recall and trust in Tier 2/3 cities.

ROCE of 20% vs. industry average of 10% — a standout metric

1

.

Capital employed has grown 115% over five years, with ROCE remaining stable — a sign of compounding efficiency

1

.

Growth Outlook

Analysts forecast 2025 targets between ₹522 and ₹534, with stop-loss levels around ₹473–₹493

2

.

Long-term targets suggest ₹630 by December 2025 and ₹800+ by 2026

3

.

📉 Technicals & Entry Zone

RSI: 47.5 — neutral, no strong momentum.

MACD: −8.18 — bearish signal.

DMA Levels: Price below both 50-DMA and 200-DMA — short-term weakness.

📌 Suggested Entry Zone: ₹495–₹515 — near support levels and technical reference points

2

.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, brand equity, and compounding ROCE support long-term value.

Buy on Dips: Prefer entry near ₹495 with a 2–3 year horizon.

Monitor: Inventory turnover, festive season demand, and expansion into new geographies.

For deeper insights, check out Simply Wall St’s ROCE analysis, Moneymint’s long-term forecast, or StockPriceArchive’s technical targets. Let me know if you'd like a peer comparison with Senco Gold or Titan next.

1

simplywall.st

2

stockpricearchive.com

3

moneymintidea.com

Edit in a page