Kalyan Jewellers shares may rally up to Rs 700, JM Financial says as it begins coverage with buy call
ADVERTISEMENT The brokerage values Kalyan at 45 times its pre-Ind AS estimated earnings for June 2027, a discount to peers like Titan, which trades at 57 times, citing the latter's superior margin profile and return ratios.
However, the brokerage sees scope for a re-rating, stating, 'We believe that this sustained performance has made the company a positive outlier in the discretionary space and will eventually result in re-rating of the stock.'
Kalyan's shift to a franchise-led model has been a key enabler of rapid scale-up, with 74 net stores added in FY25 and plans for 85–90 new stores annually through FY28. 'Strong return ratios for both the franchise partner and Kalyan ensure a long runway for the partnership,' JM Financial said, highlighting the capital-light nature of the model where inventory and capex investments are taken on by the franchisee.The brokerage expects revenue, EBITDA, and PAT for the company to grow at a compound annual rate of 25%, 23%, and 31% respectively between FY25 and FY28. While EBITDA margins are expected to contract marginally due to revenue share with franchisees, gains will accrue at the profit-before-tax level owing to lower capital deployment and reduced interest costs.
ADVERTISEMENT India's Rs 6.4 lakh crore jewellery market is seeing a gradual shift toward formal players, with the organised segment projected to grow at 20% CAGR through FY28. JM Financial said Kalyan, the fourth-largest player in the industry, is well placed to benefit from this trend. 'Kalyan Jewellers, with its strong brand presence, is well placed to capture market share,' the brokerage said.The brokerage attributed Kalyan's competitive edge to 'moats built over the years,' such as its pan-India presence, localised product mix, unique 'My Kalyan' customer acquisition model, and governance improvements, including the appointment of Grant Thornton as auditor and the sale of non-core assets to reduce debt.
ADVERTISEMENT Kalyan Jewellers shares are up 0.6% on Tuesday, trading at Rs 588.90 on the BSE. The stock has advanced 5.2% year-to-date and gained 7.7% over the past six months, though it remains just 2.4% higher over the past year.Technically, the stock is trading above seven of its eight key simple moving averages, excluding the 200-day SMA. The Relative Strength Index stands at 63.2, below the overbought threshold of 70. The MACD remains above both the centre and signal lines, reinforcing a bullish near-term trend.
ADVERTISEMENT
Also read | Kalyan Jewellers shares slip nearly 4% after posting Q1 business update
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
4 minutes ago
- Indian Express
Centre lists ‘ineligible' ration card holders, asks states to remove them
THE CENTRAL government has for the first time prepared a list of ration card holders who may not qualify for benefits such as free food grains since they are either taxpayers, owners of four-wheelers or even directors in companies. The Centre's Department of Food and Public Distribution has arrived at such a list by matching the details of ration card holders with databases of government entities such as the Income-Tax department (taxpayers), Ministry of Corporate Affairs (directors) and Ministry of Road Transport & Highways (four-wheeler owners). The officials said these ration card holders — about 1.17 crore — may not qualify for free food grains under the National Food Security Act (NFSA). Having arrived at this list, it has now directed states to undertake necessary field verification and remove the ineligible ration card holders by September 30. Responding to a query from The Indian Express, an official from the Department of Food and Public Distribution said the Centre 'has helped states by providing this data to identify and remove ineligible beneficiaries so that genuine people in the waiting list can avail the scheme'. The review of ration cards/ beneficiaries list, identification of ineligible/ duplicate ration cards and inclusion of eligible beneficiaries/ households is the responsibility of states, he said. The NFSA dashboard shows that 19.17 crore ration cards have been issued as on August 19, with total beneficiaries across 36 states and Union Territories totalling 76.10 crore. As per rules, all government employees, households with annual income of Rs 1 lakh or more, four-wheeler owners, and taxpayers are ineligible to get free foodgrains. In a letter to Chief Secretaries of all states and Advisors to the UT Administrators, Union Food Secretary Sanjeev Chopra reiterated the government's earlier instructions about discrepancies identified in the Ration Card Management System (RCMS) database. 'These discrepancies were related to beneficiaries who were either duplicate, deceased, or inactive (silent beneficiaires) and State/UTs were accordingly advised to undertake identification and field verification of such beneficiaries,' he wrote in the letter sent to states on July 8, 2025. 'In continuation of this initiative, the Department has undertaken a comprehensive exercise to further strengthen rightful targeting by matching RCMS data with databases of various Government of India entities including the Central Board of Direct Taxes (CBDT), Central Board of Indirect Taxes and Customs (CBIC), Ministry of Corporate Affairs (MCA), Ministry of Road Transport & Highways (MoRTH), and PM-Kisan,' Chopra wrote. 'Based on this inter-ministerial data convergence, the Department has identified a set of beneficiaries who appear in one or more of the above databases and may not qualify as per eligibility norms prescribed by respective States/UTs. These lists will be shared with all States/UTs via API-based integration and will be visible to State officials through the Rightful Targeting Dashboard developed by the Department,' he wrote. 'As you are aware, the responsibility for identification of beneficiaries rests with the State Government. You are, therefore, requested to kindly undertake necessary field verification of such flagged cases and initiate appropriate action for data cleansing, wherever ineligibility is established. This exercise is critical to ensure that the resources under TPDS are directed only towards the eligible households,' said Food Secretary Chopra. 'I am sure that you will appreciate that cleansing the database of ineligible beneficiaries will enable any left-out deserving individuals and families to be included in the system, thus reinforcing the equity and integrity of the Public Distribution System,' he said. 'It is requested that the above exercise be completed expeditiously and latest by 30th September 2025,' Chopra said in the report. In July, the Centre had informed Rajya Sabha that as many as 1.34 crore 'bogus/ ineligible' ration cards had been deleted/ cancelled during 2021-2023. The NFSA, introduced by the then UPA government with effect from July 5, 2013, entitles 67 per cent of households—50 per cent urban and 75 per cent rural— to receive food grains at a subsidised price (rice Rs 3/kg, wheat Rs 2/kg) under the Targeted Public Distribution System (TPDS). In absolute terms, the maximum number of people, which can be covered by the NFSA across the country is about 81.35 crore. However, the NDA government has waived the subsidised prices under its Pradhan Mantri Garib Kalyan Anna Yojana, providing free food grains.
Time of India
19 minutes ago
- Time of India
Cabinet okays bill that seeks to ban ‘online money game'
NEW DELHI: Cabinet on Tuesday approved a bill that seeks to ban "online money game", where users pay a fee or deposit money, proposing a maximum three years in jail or fine of up to Rs 1 crore for those involved in offering, encouraging or inducing players to participate, which also extends to banks facilitating these transactions. Tired of too many ads? go ad free now At the same time, Promotion and Regulation of Online Gaming Bill, which will be introduced in Lok Sabha on Wednesday, seeks to promote e-sports and online social games where no money is involved. A regulator body is planned to oversee the functioning of the sector, sources told TOI. The proposed legislation defines "online money game" as an online game played by a user by paying fees, depositing money or other stakes in expectation of winning. 2 years' jail, ₹50L fine likely for those advertising online games Online social games have been defined as those that don't involve exchange of money, although users may be allowed to pay a subscription or one-time access fee. Govt has proposed the new law considering unregulated online money gaming platforms pose threats to national and economic security as they use digital wallets and cryptocurrencies for money laundering and illicit money transfer, cross-border data flows without compliance of data protection law, sources said. Moreover, offshore entities are seen to be circumventing tax and legal obligations. The proposed legislation also assumes significance as online money gaming poses serious concerns, including addiction among children and youth, mental health issues, financial losses leading to suicides and lack of uniform regulation across states. Law enforcing agencies face problems in tracking and regulating these platforms, particularly those hosted or operated from outside India. Tired of too many ads? go ad free now Sources said the govt proposes penalties of up to two years in jail or with a maximum fine of Rs 50 lakh or both for any entity advertising such games in media. For those offering online money games and banks engaged in transactions face violations of the proposed law will be "cognisable and non-bailable" offences. Every subsequent violation after conviction would attract penalties of at least three years' jail and fine of Rs 10-20 lakh. In the case of advertisers, such penalties would be 2-3 years in jail and fine of Rs 5-10 lakh. The bill proposes to hold senior executives of the companies liable, if it's established that the offences have been committed with the consent or connivance or due to their neglect. It also proposes blocking of platforms and money gaming services, if the entities or individuals fail to comply with the law. According to the proposal, the bill seeks to encourage Indian startups to build culturally relevant content, reduce dependence on foreign platforms and promote self-reliance in the digital gaming ecosystem.
Time of India
an hour ago
- Time of India
Is Rs 1 crore enough to survive in tier 1 Indian city? Harsh financial reality and advice shared by Reddit
Redditors' Advice and Perspectives As living costs in India's major cities continue to rise, many Indians are questioning how much savings are truly sufficient to support a family comfortably. One Reddit user recently asked whether Rs 1 crore in investments, combined with an inherited flat in a Tier 1 city, would allow them to move back to India with a spouse and child. The user, who has spent most of their life abroad, expressed uncertainty about finding a job in India and whether the investment corpus alone could generate enough monthly Redditor shared that their parents own a flat worth around Rs 1.25 crore, which they are set to inherit. They currently have Rs 1 crore in overseas investments and are planning a move back to India with their family. Their key concerns included whether the investment returns would be sufficient to support daily living and how much more they should save before from the Reddit community largely indicated that Rs 1 crore would not be enough to live comfortably in a Tier 1 city without additional income. One user recommended a corpus 30–35 times the expected annual expenses to survive without working. Another highlighted that if the individual plans to rely solely on investments, especially with a child still studying, the amount would likely fall users noted the inherited property's limitations. While the flat has a high market value, it cannot easily be sold if it serves as a primary residence, reducing its usefulness as a safety net. Others suggested that Rs 1 crore might cover 7–8 years of living only if the family is extremely budget-conscious. Comparisons were made to the rising cost of living , with several commenting that Rs 5–10 crore is now the equivalent of what Rs 1 crore used to cover in past decades.A recurring theme in the discussion was the importance of working in India, or remotely for foreign companies to maintain financial stability. Users also advised keeping investments overseas in dollars to hedge against inflation and currency fluctuations. The consensus leaned toward caution: without a steady income, relying solely on Rs 1 crore is unlikely to sustain a family in a major city long-term.
