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KALYANKJIL - Fundamental Analysis: Financial Health & Valuation

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Rating: 4

Last Updated Time : 19 Mar 26, 07:10 pm

Fundamental Rating: 4.0

Stock Code KALYANKJIL Market Cap 40,236 Cr. Current Price 390 ₹ High / Low 618 ₹
Stock P/E 35.5 Book Value 51.1 ₹ Dividend Yield 0.39 % ROCE 15.7 %
ROE 15.5 % Face Value 10.0 ₹ DMA 50 415 ₹ DMA 200 474 ₹
Chg in FII Hold -0.01 % Chg in DII Hold 0.67 % PAT Qtr 429 Cr. PAT Prev Qtr 262 Cr.
RSI 43.4 MACD -8.39 Volume 24,15,024 Avg Vol 1Wk 27,05,209
Low price 348 ₹ High price 618 ₹ PEG Ratio 0.74 Debt to equity 0.62
52w Index 15.6 % Qtr Profit Var 96.7 % EPS 10.7 ₹ Industry PE 19.9

📊 Core Financials

  • Revenue & Profitability: PAT rose strongly (₹262 Cr → ₹429 Cr), showing robust growth. EPS at ₹10.7 reflects steady earnings capacity.
  • Margins: ROCE at 15.7% and ROE at 15.5% highlight moderate efficiency and profitability.
  • Debt: Debt-to-equity ratio of 0.62 indicates relatively higher leverage compared to peers.
  • Cash Flow: Strong operating performance supports cash generation, though debt levels need monitoring.

💹 Valuation Indicators

  • P/E: 35.5, significantly above industry average (19.9), suggesting premium valuation.
  • P/B: 7.63 (₹390 / ₹51.1), reflecting high market expectations.
  • PEG Ratio: 0.74, attractive as growth is undervalued compared to earnings.
  • Intrinsic Value: Current price ₹390 is near fair value; better entry closer to ₹348–370.

🏢 Business Model & Competitive Advantage

  • Strong presence in jewelry retail with trusted brand recognition.
  • High demand from festive and wedding seasons supports growth.
  • Debt levels provide leverage but require careful monitoring.

📈 Entry Zone & Long-Term Guidance

  • Entry Zone: ₹348–370 range offers attractive entry.
  • Long-Term Holding: Suitable for investors seeking exposure to jewelry retail growth, though valuation premium and debt warrant caution.


✅ Positive

  • Strong sequential PAT growth (+96.7%).
  • PEG ratio (0.74) suggests undervaluation relative to growth.
  • DII holdings increased by 0.67%, showing domestic institutional confidence.

⚠️ Limitation

  • ROE (15.5%) and ROCE (15.7%) are moderate compared to industry leaders.
  • Debt-to-equity ratio of 0.62 indicates relatively higher leverage.
  • High P/E (35.5) compared to industry average (19.9).
  • High P/B ratio reflects premium valuation.

📉 Company Negative News

  • FII holdings decreased slightly (-0.01%), showing reduced foreign investor confidence.
  • Technical indicators (RSI 43.4, MACD -8.39) suggest weak momentum.

📈 Company Positive News

  • Sequential PAT growth from ₹262 Cr to ₹429 Cr.
  • DII holdings increased by 0.67%, reflecting strong domestic institutional support.
  • Dividend yield of 0.39% adds to shareholder returns.

🏭 Industry

  • Industry P/E at 19.9, much lower than company’s P/E, indicating premium valuation.
  • Jewelry retail sector remains resilient with strong demand from festive and wedding seasons.

🔎 Conclusion

  • Kalyan Jewellers demonstrates solid fundamentals with strong earnings growth and brand strength.
  • Valuation is premium compared to industry, making entry less attractive at current levels.
  • Entry zone between ₹348–370 is favorable for long-term investors.
  • Overall, a fundamentally stable company with growth prospects, though short-term momentum weakness and higher debt warrant caution.

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