KALYANKJIL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.9

Here’s a detailed breakdown of Kalyan Jewellers India Ltd (KALYANKJIL)

📊 Core Financials

Revenue & Profitability

Quarterly PAT dipped from ₹219 Cr to ₹188 Cr, indicating a short-term slowdown.

EPS of ₹6.93 is modest given the high valuation.

ROE (15.9%) and ROCE (14.3%) are decent but not exceptional for a retail business.

Debt & Cash Flow

Debt-to-equity ratio of 1.03 suggests moderate leverage. Not alarming, but worth monitoring.

No direct cash flow data provided, but debt levels imply some reliance on external funding.

📈 Valuation Metrics

Metric Value Remarks

P/E Ratio 87.2 Extremely high vs industry average (30.5) — signals overvaluation

P/B Ratio ~13 Based on Book Value ₹46.6 — also high

PEG Ratio 1.85 Above 1 — indicates growth is not justifying the premium

Intrinsic Value ❓ Likely below current price based on fundamentals

🧠 Business Model & Competitive Edge

Model: Retail-focused jewellery chain with strong brand presence across India.

Strengths

Wide product range (gold, diamond, platinum, etc.)

Strong regional branding and wedding season tailwinds

Challenges

High gold price volatility

Intense competition from Titan, Tanishq, and regional players

Thin margins typical of retail jewellery

📉 Technical & Sentiment Indicators

RSI at 61.8 suggests neutral-to-slightly-overbought territory.

MACD positive at 13.0 — momentum is currently bullish.

DMA50 and DMA200 are below current price — trend is upward.

FII holding slightly down (-0.06%), DII holding up (+1.37%) — mixed institutional sentiment.

🎯 Entry Zone & Long-Term View

Suggested Entry Zone: ₹565–₹574 — aligns with technical support and DMA levels

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Stop Loss: ₹545 (daily close basis)

Targets: ₹628 short-term, ₹675 medium-term

Long-Term Holding: Viable if valuation cools. Watch for consistent earnings growth and debt reduction.

Would you like a comparison with Titan or another peer to see how Kalyan stacks up?

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