Kalyan Jewellers India Ltd (KALYANKJIL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sky Gold & Diam.

Thangamayil Jew.

Titan Company

Senco Gold

P N Gadgil Jewe.

Vaibhav Global

Kalyan Jewellers

Goldiam Intl.

Ethos

Bluestone Jewel

PC Jeweller

Why is Kalyan Jewellers India Ltd ?

Healthy long term growth as Net Sales has grown by an annual rate of 33.05% and Operating profit at 39.43%

With a growth in Net Sales of 29.86%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 12 consecutive quarters
ROCE(HY) Highest at 18.32%
DEBT-EQUITY RATIO(HY) Lowest at 0.97 times
PBT LESS OI(Q) At Rs 492.66 cr has Grown at 45.7% (vs previous 4Q average)

With ROCE of 17.9, it has a Fair valuation with a 3.6 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -35.46%, its profits have risen by 93.2% ; the PEG ratio of the company is 0.3

High Institutional Holdings at 28.68%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -0.07% in the last 1 year, its fall in the stock was much higher with a return of -35.46%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kalyan Jewellers should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Kalyan Jewellers for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kalyan Jewellers

-35.46%

-0.92

38.64%

Sensex

-6.64%

-0.51

12.94%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

33.05%

EBIT Growth (5y)

39.43%

EBIT to Interest (avg)

3.19

Debt to EBITDA (avg)

3.52

Net Debt to Equity (avg)

0.83

Sales to Capital Employed (avg)

2.17

Tax Ratio

25.06%

Dividend Payout Ratio

21.64%

Pledged Shares

24.85%

Institutional Holding

28.68%

ROCE (avg)

13.48%

ROE (avg)

14.15%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.79

EV to EBIT

20.19

EV to EBITDA

16.76

EV to Capital Employed

3.61

EV to Sales

1.17

PEG Ratio

0.28

Dividend Yield

0.42%

ROCE (Latest)

17.88%

ROE (Latest)

21.89%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

25What is working for the Company

ROCE(HY)

Highest at 18.32%

DEBT-EQUITY RATIO(HY)

Lowest at 0.97 times

PBT LESS OI(Q)

At Rs 492.66 cr has Grown at 45.7% (vs previous 4Q average

PAT(Q)

At Rs 409.50 cr has Grown at 41.3% (vs previous 4Q average

NET SALES(Q)

At Rs 10,274.94 cr has Grown at 29.9% (vs previous 4Q average

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 41.25 times

INTEREST(Q)

Highest at Rs 129.98 cr

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Here's what is working for Kalyan Jewellers

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 492.66 cr has Grown at 45.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 338.15 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 409.50 cr has Grown at 41.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 289.84 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.97 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales - Quarterly

At Rs 10,274.94 cr has Grown at 29.9% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 7,912.37 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for Kalyan Jewellers

Interest - Quarterly

Highest at Rs 129.98 cr

in the last five quarters and Increased by 24.57 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 41.25 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio