🟢 At a Glance
Kalyan Jewellers has gone from IPO underdog to one of India’s fastest-growing jewellery brands, clocking ₹25,000 Cr in FY25 revenue. With a 3-year profit CAGR of 47%, 700+ Cr in PAT, and international expansion in full swing, it’s sparkling. But at 84x P/E, are we paying gold rates for silver growth?
1. 🎬 Introduction with Hook
Remember the 2021 IPOs where you thought: “Yeh toh kuch khaas nahi karega.”
Well, Kalyan Jewellers said “Hold my gold chain.”
Stock’s up 5x since listing, profits up 10x since FY21, and now it’s gunning for Titan’s retail throne — one showroom at a time, in India and the Middle East.
But here’s the twist:
Margins are still wafer-thin. ROCE is just ~14%. And it’s trading at 84x earnings.
Are we staring at India’s next Titan… or just a Titan wannabe with a heavy price tag?
2. 💍 Business Model – WTF Do They Even Do?
Kalyan is a pan-India and GCC jewellery retailer that makes money from:
- Gold Jewellery (main segment – price-sensitive, high volume)
- Studded / Diamond Jewellery (higher margins)
- Custom Orders, Bridal, Temple collections
- International Retailing in UAE, Oman, Qatar, Kuwait
- Online & Omnichannel via Candere.com and Enovate
Think of it as the D-Mart of jewellery — standardised, trusted, and focused on scale over bling.
3. 📊 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹14,071 Cr | ₹18,548 Cr | ₹25,045 Cr |
| Net Profit | ₹432 Cr | ₹596 Cr | ₹714 Cr |
| OPM % | 8% | 7% | 6% |
| ROCE | 13% | 14% | 14.3% |
| ROE | 13% | 15.8% | 15.9% |
CAGRs:
- 5Y Revenue CAGR: 20%
- 5Y PAT CAGR: 38%
- 3Y PAT CAGR: 47%
🧠 Margins are thin, but the growth momentum is strong and clean.
4. 💰 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹579
- EPS FY25: ₹6.93
- P/E: ~83.6x
- P/B: 12.4x
- Market Cap: ₹59,684 Cr
- Book Value: ₹46.6
Compare with peers:
| Brand | P/E | ROCE | OPM |
|---|---|---|---|
| Titan | 91x | 19.1% | 9.4% |
| Kalyan | 84x | 14.3% | 6% |
| PNG | 37x | 19.3% | 4.4% |
| Thangamayil | 50x | 13.7% | 4.5% |
Valuation is in Titan territory. Margins are not. Premium ka price mil raha hai, performance thoda delayed hai.
5. 🔥 What’s Cooking – News, Triggers, Drama
🏪 Store Expansion:
- 224 showrooms across India + GCC
- Target: 30+ new stores in FY26
- Opened 11 stores in one day (Aug 2023) 💥
🌍 Global Play:
- Full acquisition of Oman, UAE arms
- New UK subsidiary launched
- International biz now >15% of total revenue
💼 Strategic Moves:
- Bought Candere stake from Enovate
- Re-appointed MD + WTD for 5 years
- Promoters bought back 2.36% via SPA
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Equity Capital | ₹1,031 Cr |
| Reserves | ₹3,772 Cr |
| Borrowings | ₹4,959 Cr |
| D/E Ratio | ~1.0x |
| Total Assets | ₹15,126 Cr |
Despite strong growth, debt has been rising steadily — needs to be watched. However, rating upgraded to BBB+ / Stable.
7. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO | Capex | FCF |
|---|---|---|---|
| FY23 | ₹1,013 Cr | ₹384 Cr | ₹629 Cr |
| FY24 | ₹1,322 Cr | ₹137 Cr | ₹1,185 Cr |
| FY25 | ₹1,209 Cr | ₹177 Cr | ₹1,032 Cr (approx) |
💰 Strong, positive FCF last 3 years — a very rare feat for jewellery retailers.
8. 📐 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 14.3% |
| ROE | 15.9% |
| OPM | 6% |
| Inventory Days | 162 (down from 272) |
| CCC | 129 days (improving steadily) |
| Working Capital Days | 74 (was 157 in FY21) |
They’re compressing the working capital cycle — gold loans and customer advances helping.
9. 💼 P&L Breakdown – Show Me the Money
- Revenue: ₹25,045 Cr
- Gross Margin: ~14%
- EBITDA: ₹1,517 Cr
- PAT: ₹714 Cr
- EPS: ₹6.93
- Dividend: ₹1.5/share (22% payout)
Margins may be low, but scale is everything — 8% margin on ₹25,000 Cr = Titan’s early playbook.
10. 🥊 Peer Comparison – Who Else in the Game?
| Company | P/E | Revenue (Cr) | ROCE | PAT (Cr) |
|---|---|---|---|---|
| Titan | 91x | ₹60,456 | 19.1% | ₹3,336 |
| Kalyan | 84x | ₹25,045 | 14.3% | ₹714 |
| PNG Jewellers | 37x | ₹7,693 | 19.3% | ₹218 |
| Thangamayil | 50x | ₹4,911 | 13.7% | ₹119 |
| PC Jeweller | 21x | ₹2,244 | 6.5% | ₹577 (but 👎 quality) |
Kalyan is #2 after Titan in scale, but #3 or #4 in ROCE, margin, and valuation comfort.
11. 🧬 Miscellaneous – Shareholding, Promoters
| Stakeholder | % |
|---|---|
| Promoters | 62.85% (increased in FY25) ✅ |
| FIIs | 16.89% |
| DIIs | 11.97% |
| Public | 8.29% |
👀 Promoter stake increased by 2.3% via open market/SPA — sign of confidence.
12. 🧠 EduInvesting Verdict™
Kalyan has pulled off what most IPOs don’t:
Consistent growth, strong governance, expanding footprint, and clean books.
✅ 3Y PAT CAGR = 47%
✅ Strong FCF
✅ Inventory days falling
✅ Gaining share in organised gold retail
But…
❌ 84x P/E for 6% margin biz
❌ Debt inching up
❌ Still far from Titan’s ROCE + net margin zone
🎯 Fair Value Estimate (FV Range):
Assuming:
- FY26E EPS = ₹8.30–₹8.50
- Justified P/E range = 35–45x
FV Range = ₹290 – ₹385
At ₹579, it’s priced like a luxury boutique, not a discount retailer. Growth is real, but baked into the price like ghee in Mysore Pak.
✍️ Written by Prashant | 📅 July 9, 2025
Tags: Kalyan Jewellers, Titan Rival, Gold Retail, Jewellery Stocks India, Organised Retail Growth, High P/E Stocks, EduInvesting, IPO Success Stories, FY25 Results
