- Kalyan Jewellers shares hit 10% upper circuit at Rs 418.25 after Q3 results
- Net profit rose 90% YoY to Rs 416.29 crore in October-December quarter
- All nine analysts have a buy rating with average target price of Rs 651.33
Shares of jewellery retailer Kalyan Jewellers Ltd. on Monday surge over 10% with the stock trading at Rs 418.25. The rally came after the company announced their strong third quarter earnings after market hours on Friday which uplifted the market sentiment. Moreover, gold and silver prices have also shown slight growth.
Kalyan Jewellers reported a 90% year-on-year growth in net profit in the October-December quarter at Rs 416.29 crore. Revenue from operations grew 42% during the quarter under review to Rs 10,343 crore compared to Rs 7,278 crore last year.
Kalyan Jewellers Q3 Results (Consolidated, YoY)
- Revenue up 42% at Rs 10,343 crore versus Rs 7,278 crore
- EBITDA up 74.5% at Rs 750 crore versus Rs 430 crore
- EBITDA margin at 7.3% versus 5.9%
- Net profit up 90% at Rs 416 crore versus Rs 219 crore
- One-time cost of Rs 41.5 crore due to new labour codes.
"We are extremely excited with the way the current year has progressed so far. The current quarter has started off very well despite the volatility in gold prices. We are upbeat about the ongoing wedding season and expect to end the financial year on a strong note," Kalyan Jewellers India Executive Director Ramesh Kalyanaraman said in a statement.
Brokerage firm HSBC has reiterated its confidence in jewellery retailer Kalyan Jewellers, but not without acknowledging that the market's mood has shifted in recent weeks. In its latest note, the brokerage maintained a 'buy' rating on the stock, while cutting its target price to Rs 650 from Rs 690. Shares of the company closed at Rs 379.80, up 0.9% on Friday.
The brokerage noted the strong operational performance, supported by operating leverage, which helped the company deliver a decent Q3 earnings. HSBC said adjusted EBITDA rose 52% year-on-year.
Kalyan Jeweller Share Price.
Total traded volume so far in the day stood at 6.54 times its 30-day average. The relative strength index was at 28.36, indicating the stock is in the overbought zone.
All nine analysts tracking Kalyan Jewellers have a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target of Rs 651.33 implies an upside of 55.7%
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