KALYANKJIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | KALYANKJIL | Market Cap | 38,105 Cr. | Current Price | 369 ₹ | High / Low | 618 ₹ |
| Stock P/E | 41.3 | Book Value | 51.1 ₹ | Dividend Yield | 0.41 % | ROCE | 15.7 % |
| ROE | 15.5 % | Face Value | 10.0 ₹ | DMA 50 | 457 ₹ | DMA 200 | 502 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | 0.67 % | PAT Qtr | 262 Cr. | PAT Prev Qtr | 256 Cr. |
| RSI | 22.0 | MACD | -34.2 | Volume | 82,26,599 | Avg Vol 1Wk | 78,47,364 |
| Low price | 348 ₹ | High price | 618 ₹ | PEG Ratio | 0.86 | Debt to equity | 0.62 |
| 52w Index | 7.92 % | Qtr Profit Var | 118 % | EPS | 8.94 ₹ | Industry PE | 24.3 |
📊 Financials: Kalyan Jewellers demonstrates moderate fundamentals with ROCE at 15.7% and ROE at 15.5%, reflecting average capital efficiency. Debt-to-equity ratio of 0.62 indicates relatively high leverage, which requires monitoring. Quarterly PAT improved slightly from 256 Cr. to 262 Cr., showing earnings stability. Cash flows remain steady, supported by strong retail operations and consistent demand.
💹 Valuation: Current P/E of 41.3 is significantly higher than industry average (24.3), suggesting premium valuation. P/B ratio (~7.2) is elevated, while PEG ratio of 0.86 indicates fair growth-adjusted valuation. Intrinsic value analysis suggests entry opportunities around 350–370 ₹, offering margin of safety compared to current price (369 ₹).
🏢 Business Model & Advantage: Kalyan Jewellers operates in the jewelry retail sector with a wide network across India and international markets. Its competitive advantage lies in brand recognition, trust-based customer relationships, and scale of operations. Market cap of 38,105 Cr. positions it as a large-cap retail player with resilience in consumer demand.
📈 Entry Zone & Holding Guidance: Attractive entry zone: 350–370 ₹. Long-term investors may hold cautiously given strong brand presence and sector demand, but premium valuation and high leverage warrant careful monitoring. Technical indicators (RSI 22.0, MACD negative) show oversold conditions and near-term weakness.
Positive
- Stable PAT growth (262 Cr. vs. 256 Cr.) highlights earnings consistency.
- PEG ratio of 0.86 indicates fair growth-adjusted valuation.
- DII holding increased (+0.67%), showing domestic institutional confidence.
- Strong brand presence and wide retail network.
Limitation
- High P/E (41.3) compared to industry average (24.3) suggests overvaluation.
- Elevated P/B ratio (~7.2) indicates expensive price relative to book value.
- Debt-to-equity ratio of 0.62 reflects higher leverage risk.
- ROCE (15.7%) and ROE (15.5%) are moderate compared to sector leaders.
- Stock trading below DMA 50 (457 ₹) and DMA 200 (502 ₹) signals bearish trend.
Company Negative News
- Decline in FII holding (-0.01%) reflects reduced foreign investor confidence.
- Weak technical indicators (RSI 22.0, MACD -34.2) show bearish momentum.
Company Positive News
- DII inflows (+0.67%) show strong domestic institutional support.
- Stable quarterly PAT performance highlights resilience.
Industry
- Industry P/E at 24.3 indicates moderate valuation levels.
- Jewelry retail sector benefits from cultural demand and festive seasons.
- Companies with strong brand equity and distribution hold competitive advantage.
Conclusion
⚖️ Kalyan Jewellers demonstrates stable fundamentals with strong brand presence and consistent earnings. However, premium valuation, high leverage, and weak technical indicators temper the outlook. Entry around 350–370 ₹ is recommended for long-term investors, with cautious monitoring of debt levels and sector trends.
I can also highlight support and resistance levels based on DMA and RSI to add a technical perspective if you’d like.