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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Thangamayil Jew.

Sky Gold & Diam.

Titan Company

P N Gadgil Jewe.

Goldiam Intl.

Ethos Ltd

Kalyan Jewellers

Rajesh Exports

Senco Gold

PC Jeweller

Bluestone Jewel

Why is Kalyan Jewellers India Ltd ?

Healthy long term growth as Net Sales has grown by an annual rate of 28.39% and Operating profit at 24.12%

The company has declared Positive results for the last 10 consecutive quarters

OPERATING PROFIT TO INTEREST(Q) Highest at 5.23 times
DPS(Y) Highest at Rs 1.50
DPR(Y) Highest at 22.47%

With ROCE of 14.7, it has a Expensive valuation with a 5.5 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 -36.94%, its profits have risen by 48.6% ; the PEG ratio of the company is 1.1

High Institutional Holdings at 28.69%

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) has generated returns of 1.78% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -36.94% returns

With its market cap of Rs 48,561 cr, it is the second biggest company in the sector (behind Titan Company)and constitutes 10.59% of the entire sector

Its annual Sales of Rs 28,584.13 are 3.83% of the industry

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

-36.94%

-0.83

44.69%

Sensex

4.89%

0.41

11.85%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.39%

EBIT Growth (5y)

24.12%

EBIT to Interest (avg)

2.88

Debt to EBITDA (avg)

3.94

Net Debt to Equity (avg)

0.85

Sales to Capital Employed (avg)

2.01

Tax Ratio

25.37%

Dividend Payout Ratio

21.64%

Pledged Shares

24.89%

Institutional Holding

28.69%

ROCE (avg)

12.37%

ROE (avg)

13.17%

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

9.27

EV to EBIT

37.23

EV to EBITDA

29.45

EV to Capital Employed

5.47

EV to Sales

1.89

PEG Ratio

1.10

Dividend Yield

0.31%

ROCE (Latest)

14.70%

ROE (Latest)

17.43%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

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

19What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 5.23 times

DPS(Y)

Highest at Rs 1.50

DPR(Y)

Highest at 22.47%

NET SALES(Q)

Highest at Rs 7,856.03 cr

PBT LESS OI(Q)

At Rs 298.86 cr has Grown at 29.7% (vs previous 4Q average

PAT(Q)

At Rs 260.51 cr has Grown at 30.1% (vs previous 4Q average

-3What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.63 times

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Here's what is working for Kalyan Jewellers

Operating Profit to Interest - Quarterly

Highest at 5.23 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 7,856.03 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 298.86 cr has Grown at 29.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 230.48 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 260.51 cr has Grown at 30.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 200.28 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Dividend per Share (DPS) - Annually

Highest at Rs 1.50

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Highest at 22.47%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Kalyan Jewellers

Debtors Turnover Ratio- Half Yearly

Lowest at 5.63 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 51.41 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income