🪞 At a Glance

From being the underdog jeweller once mocked for overacting ads, Kalyan Jewellers has blinged its way to ₹25,000 crore revenue, 714 Cr PAT, and a market cap of ₹53,000+ Cr. Over the last 5 years, it’s gone from margin squeeze to margin tease — now threatening Titan’s hegemony in tier 2-3 cities.

🧱 Part 1: Humble Origins… And Heavy Gold Chains

Back in FY20, Kalyan wasn’t exactly the toast of Dalal Street.

• Revenue: ₹10,100 Cr
• PAT: Just ₹142 Cr (before getting wrecked by COVID)
• Working capital cycle? A massive 122 days
• Ads? Loud. Margins? Not.

But unlike PC Jeweller (RIP trust), Kalyan never promised fairy tales. It just kept expanding.

🚀 Part 2: Pandemic Dip, IPO Flip, and Titan-Sized Ambitions

COVID nearly choked the jewellery industry, but Kalyan’s survival instincts kicked in:

• FY21 saw revenue dip to ₹8,573 Cr.
• PAT was a negative ₹6 Cr.
• But by FY22, it roared back with ₹10,818 Cr sales and ₹224 Cr PAT.

And then, 2021 IPO happened.

Dalal Street laughed. Retail applied. Anchor investors nodded. Kalyan listed… modestly.
But behind the scenes — real transformation began.

📈 Part 3: Numbers That Could Outshine a Wedding Sabyasachi

📊 Revenue & Profit (FY20–FY25)

• 5Y Revenue CAGR: 20%
• 5Y Profit CAGR: 38% 💸

TL;DR: It grew like a wedding guest list in Delhi — aggressively and with a vengeance.

🔁 Part 4: Margins, ROCE & The Sona-conomics

• EBITDA Margin: Hovered around 6–8%. Not Titan-level, but respectable.
• ROCE: Improved to 14.3% (from just 7% in FY21)
• Working Capital: Down from 122 days (FY20) to just 74 days (FY25)

This means less dead stock lying around and faster inventory turns — a big deal in jewellery retail.

📦 Part 5: Store Expansion? More Branches Than HDFC!

• From 100+ stores to over 250+ in India + Middle East
• Added 170 new stores in FY25 alone 🔥
• Candere (their digital D2C brand) showing promise — finally.

Oh, and FIIs + DIIs love the story now. Shareholding pattern shows:

• Promoters: 62.85%
• FII + DII: 28.86%
• Retail: Slipping, as institutions bulk up.

💎 Part 6: What’s the Buzz for FY26?

💡 Growth Drivers:

• Tier-2 & Tier-3 markets — currently 65% of their new store targets
• Candere revival — they want to make it the “Myntra of Jewellery” (their words, not ours)
• Middle East boom — Gulf expansion continues
• Wedding season tailwinds — ₹1.5L Cr+ Indian jewellery market is a beast

But…

🛑 Red Flags:

• Valuation: P/E ~74x — this isn’t cheap.
• Margins: Still low compared to Titan or even Senco
• Interest capitalization flagged in Screener
• Gold price volatility can eat into margins

🧮 Part 7: Fair Value Range 💰

Let’s crunch:

• FY25 EPS = ₹6.93
• Expected FY26 EPS (assuming 25% growth): ₹8.66
• Assigning a reasonable P/E band (40x–50x for a Tier-2 leader)

🎯 FV Range = ₹346 – ₹433

Current Price = ₹515 😬
Verdict: Priced for perfection. One slip and it might not be so golden.

🏁 Final Verdict: From ‘Overacted Ads’ to Overachiever?

Kalyan Jewellers has clearly delivered:

✅ Multibagger returns (3x in 3 years)
✅ Real profit growth
✅ Smart expansion
✅ Rising institutional interest

But now… the stock has run ahead of fundamentals. Can they deliver 30%+ growth again in FY26?

The gold may glitter — but at ₹515, even gold feels nervous.

✍️ Written by Prashant | 📅 June 18, 2025
Tags: Kalyan Jewellers, Jewellery Stocks, Titan Rival, FY25 Results, Stock Recap, Multibagger, Indian Weddings, NSE Stocks, Gold Stocks, Retail Sector