⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
KALYANKJIL - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 05 Nov 25, 7:43 am
Back to Fundamental ListFundamental Rating: 3.9
📊 Financial Overview
- Profitability: PAT rose from ₹185 Cr to ₹256 Cr QoQ, a strong 55.4% increase, with EPS at ₹7.56.
- Return Metrics: ROE at 15.5% and ROCE at 15.7% reflect solid capital efficiency.
- Valuation: P/E of 67.5 is significantly above the industry average (31.7), indicating a premium valuation.
- P/B Ratio: With a book value of ₹46.3 and price of ₹510, P/B is ~11.0, suggesting a steep premium.
- PEG Ratio: 1.41 indicates moderate overvaluation relative to growth.
- Debt Profile: Debt-to-equity ratio of 0.69 is manageable but on the higher side for a retail business.
- Momentum: RSI at 61.8 and MACD at 3.64 suggest bullish sentiment with potential for near-term strength.
🏢 Business Model & Competitive Edge
- Kalyan Jewellers is a leading pan-India jewellery retailer with a strong presence in Tier 1 and Tier 2 cities.
- Its trust-based brand positioning and wide product range cater to diverse customer segments.
- Expansion into digital channels and franchise-led growth model enhances scalability and asset-light expansion.
💡 Entry Zone Recommendation
- Current price is near DMA 50 (₹503) and slightly below DMA 200 (₹529), indicating consolidation.
- Suggested Entry Zone: ₹490–₹510 for accumulation.
- Long-term holding is viable if earnings momentum continues and debt levels remain under control.
✅ Positive
- Strong QoQ PAT growth and improving profitability.
- ROE and ROCE above industry average, indicating efficient capital use.
- DII holdings increased by 1.22%, reflecting rising domestic investor confidence.
⚠️ Limitation
- High P/E and P/B ratios suggest valuation concerns.
- Debt-to-equity ratio of 0.69 is relatively high for a retail business.
- PEG ratio above 1.0 indicates moderate overvaluation relative to growth.
📉 Company Negative News
- FII holdings declined by 2.71%, indicating cautious foreign sentiment.
- Stock has corrected ~36% from its 52-week high of ₹795.
📈 Company Positive News
- Strong quarterly earnings and robust festive season demand outlook.
- Digital and franchise expansion strategies gaining traction in semi-urban and rural markets.
🏭 Industry
- Jewellery retail benefits from rising disposable income, festive demand, and increasing formalization of the sector.
- Industry P/E of 31.7 supports moderate valuation for branded players with national presence.
🧾 Conclusion
- Kalyan Jewellers is a well-established retail brand with strong earnings momentum and expansion potential.
- Entry near ₹490–₹510 offers a favorable long-term opportunity for growth-focused investors.
- Monitor debt levels and institutional flows to assess sustainability of premium valuation.
NIFTY 50 - Today Top Fundamental Picks Stock Picks
NEXT 50 - Today Top Fundamental Picks Stock Picks
MIDCAP - Today Top Fundamental Picks Stock Picks
SMALLCAP - Today Top Fundamental Picks Stock Picks