The brokerage house has given investment advice in Kalyan Jewelers and has estimated an upside of 60 percent. The company’s conso revenue may grow by 105 percent in Q1FY23.
Kalyan Jewellers Stock Price: If you are looking for a better bullion stock to invest, then you can keep an eye on Kalyan Jewelers. The stock of this company, which runs a nationwide jewelery chain, is trading 27 percent below its IPO price launched last year. In such a situation, if you miss during the IPO, you can get high returns by investing now. Brokerage house Centrum Broking has given investment advice in the stock and has forecast an upside of 60 per cent. The brokerage house strongly says that the company’s Conso revenue may increase by 105 percent in Q1FY23. The company’s plan is on expansion through online and offline across the country. At the same time, the company is focusing on gaining market edge through new age design.
Revenue growth expected to exceed 100%
According to the report of brokerage house Centrum, the June quarter can prove to be better for Kalyan Jewellers. The company has said in the information given to the exchange that during Q1FY23 there is a strong momentum in the footfall and India and Middle East revenue. The company’s conso revenue may grow by 105 percent in Q1FY23. The company’s revenue in India business is expected to grow by 115 per cent year-on-year. Management has indicated that the company is benefiting from the demand shift from unorganized to organized sector and is seeing strong operating momentum.
Shares can give 60% return
On the margin front, it is expected to improve on a year-on-year basis. Talking about the Middle East, the operating revenue coming from the region can see 65 percent growth on a yearly basis. The online format Candere has achieved over 80 per cent revenue growth during the June quarter. Overall brokerage house Kalyan Jewelers is positive on the year and has given investment advice with a target of Rs 101. In terms of current price of Rs 63, 60 percent return is possible in the stock.
focus on expansion
According to brokerage house Centrum, Kalyan Jewelers aims to expand its light weight jewelery offering by combining online and offline formats to meet the demand in West and North India. The brokerage says that the company’s hyperlocal strategy is centered around meeting the demand by opening stores in the non-south market, improving the studded ratio, servicing millennials with an online format and introducing new age designs. The brokerage is also positive on the company’s business momentum. However, irrational competition, weak demand for jewelery and rising gold prices are some of the risk factors.
Let us inform that the share of Kalyan Jeweler was listed in the market on March 26 last year. The stock got listed at Rs 73.90 against IPO price of Rs 87. Right now it is at Rs 63. That is, at 28 percent discount from the IPO price.