Over 300% return in 1 year! What's next for this multibagger stock post Q4 update?

Shares of Kalyan Jewellers have delivered over 300 per cent return in the last 12 months. The multibagger stock has recovered over 325 per cent from its 52-week low of Rs 101 and is now hovering around its 52-week high of Rs 449.50.

The company is in focus following its Q4 update. It said that the recently concluded quarter has been a very encouraging one, having witnessed continued robust momentum in both footfalls and revenue across all markets in India and the Middle East despite a sharp rise in gold price during the second half of the quarter.

"We are upbeat about the ongoing quarter and are witnessing encouraging trends in the advance collections for both Akshaya Tritiya as well as for wedding purchases for the festive/wedding season," the company said.

What's next?

HSBC has maintained its 'Buy' rating and raised its target price on the counter to Rs 500 post its Q4 update. It said that the asset light network expansion is delivering results. It noted that the company's consolidated sales are up 34 per cent on an year-on-year (YoY) basis in Q4, led by strong India sales.

It further added that he company opened 10 new Kalyan showrooms (nine franchise) in Q4, taking the total India count to 204 and it is all set to open 80 showrooms in FY25.

Kalyan Jewellers: Q3 Performance

The company reported consolidated revenue of Rs 5,223 crore during the third-quarter of ongoing financial year 2023-24 (Q3) as against Rs 3,884 crore in the corresponding period last fiscal, registering a growth of over 34 per cent.

The standalone revenue for the company (India) in Q3, was Rs 4,512 crore, compared to Rs 3,219 crore in Q3 of the previous financial year, a growth of over 40 per cent.

Consolidated PAT (profit after tax) for Q3 FY24 was up around 22 per cent at Rs 180 crore as against a PAT of Rs 148 crore in the year-ago period.

 

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