Kalyan Jewellers - Store Expansion Is The Key: ICICI Securities Initiates Coverage

Kalyan Jewellers store in Mumbai. (Source: BloombergQuint).

Kalyan Jewellers - Store Expansion Is The Key: ICICI Securities Initiates Coverage

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Kalyan Jewellers India Ltd. is a pan-India jeweller with focus on the strengths of:

  1. store expansion,

  2. consistent investment in brand,

  3. hyperlocal strategy, and

  4. My Kalyan network differentiation (in our view).

Accelerated industry formalisation and new store addition of 15-20 per annum are medium-term revenue growth drivers.

We forecast 20% and 36% compound annual growth rate in revenues and Ebitda respectively, over FY21E-FY23E.

Key risks are:

  1. potentially higher competitive intensity in core South India markets,

  2. execution risks in expansion, and

  3. delayed economic recovery in the Middle East.

Click on the attachment to read the full report:

ICICI Securities Kalyan Jewellers Initiating Coverage.pdf

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