On Wednesday, Kalyan Jewellers India Ltd (KALYANKJ:IN) stock received a positive outlook from Motilal Oswal Securities, initiating coverage with a Buy rating and setting a price target of INR 525.00.
The firm highlighted the company's extensive retail network, which includes over 217 stores across India, and its successful shift to a franchise model that has grown to 76 stores since the fiscal year 2023.
The expansion strategy of Kalyan Jewellers is underscored by the planned opening of 80 new stores in the fiscal year 2025 through franchising, which is expected to be an asset-light approach. This method is anticipated to improve cash flows and contribute to a significant reduction in the company's debt by INR 6.0 billion over the forthcoming two years.
The company's performance in the fiscal year 2024 showcases a studded ratio of 28%, which is considered best in its class. This figure represents Kalyan Jewellers' adeptness in catering to the changing consumer preferences, particularly among the youth and those with non-traditional tastes in jewelry.
Kalyan Jewellers' strategy reflects a keen understanding of the evolving market dynamics and consumer trends. With its expansion through franchising, the company aims to fortify its presence in the Indian jewelry market while simultaneously managing its financial leverage.
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