Kalyan Jewellers Share: 200% Surge, EMA Crossover, and Rising FIIs Interest – Is This Gem Worthy of Your Portfolio?

Kalyan Jewellers India Ltd. stands as a beacon in the realm of gold and studded jewelry, offering a diverse range of products across various price points. As one of India's leading jewelry retailers, the company has witnessed remarkable growth, boasting a market capitalization of approximately ₹34,373 crores. Kalyan Jewellers garnered significant attention by delivering over 200% returns to its investors in less than a year. With a rising net profit and a compelling market presence, the question arises: Is it time to consider adding Kalyan Jewellers to your investment portfolio?

Charting Success

A glance at the daily chart paints a vivid picture of Kalyan Jewellers' meteoric rise.

Starting at a humble Rs 104 per share in May 2023, it has climbed steadily to over Rs 325 per share by December. This phenomenal growth has translated into a substantial 200% return for investors within just seven months. Delving into technical analysis reveals a potential EMA crossover, signaling further positive momentum. Notably, the stock has found support within the ₹315 to ₹305 range, a critical zone for investors to monitor. If the prices hold firm here, it could spell lucrative investment opportunities.

Quarterly Triumphs

Kalyan Jewellers India's second-quarter results underscore its financial prowess. The company reported a robust 27.1% rise in consolidated net profit, soaring to ₹1.35 billion ($16.23 million) from ₹1.06 billion the previous year. Driving this success is the impressive 32% revenue growth from its India operations, the largest contributor to overall revenue. The total revenue from operations witnessed a substantial 27% increase, reaching ₹44.15 billion. Strong demand and consistent growth in same-store-sales across key markets propelled this remarkable performance, as detailed in the company's quarterly update.

Factors in Favor

Several factors position Kalyan Jewellers as an attractive investment option:

1. Debt Reduction: The company has successfully reduced its debt burden, contributing to a healthier financial outlook.
2. Profit Growth: With a commendable 29.6% Compound Annual Growth Rate (CAGR) in profit over the last five years, Kalyan Jewellers showcases consistent and substantial growth.
3. Foreign Institutional Investors (FIIs) Interest: The stock has garnered increasing interest from FIIs, reflecting confidence in its growth potential.

Disclaimer: (This information is provided solely for informational purposes. It is important to note that investing in the market or a business idea involves market risks. Before investing money as an investor/ owner/ partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial losses.)

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