LONG On Kalyan Jewellers

Here are all the insights of the recent report published by the company

### **Kalyan Jewellers Financial Analysis and Investment Recommendation**

#### **Overall Financial Performance:**
1. **Revenue Growth:**
- **Q3 2024 Revenue:** ₹72,888 million, up from ₹60,654 million in Q2 2024 and ₹52,230 million in Q3 2023.
- **9-Month Revenue:** ₹188,878 million, significantly higher than ₹140,133 million in 2023.
- Strong revenue growth is driven by festive demand and new store openings.

2. **Profitability:**
- **Q3 2024 Net Profit:** ₹2,186 million, up from ₹1,803 million in Q3 2023.
- **9-Month Net Profit:** ₹5,265 million, up from ₹4,587 million in 2023.
- Margins are stable, and profitability is improving with strong consumer demand.

3. **Expenses & Costs:**
- **Cost of materials consumed:** ₹63,528 million in Q3 2024 (major contributor to total expenses).
- **Advertisement & Promotion Costs:** ₹1,106 million in Q3 2024, showing continued brand investment.
- **Finance Costs:** ₹876 million in Q3 2024, stable compared to previous quarters.

4. **Debt & Liquidity:**
- No major debt concerns; company remains well-capitalized.
- Disposal of non-core assets (aircraft sale) improved cash flow.

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### **Investment Recommendation:**
✅ **Reasons to Invest:**
- Strong **revenue and profit growth**.
- **Expanding market share** with new store openings.
- Strong **brand recognition and festive demand** driving sales.
- No major debt concerns, **solid financial position**.

❌ **Risks & Concerns:**
- **Gold price volatility** affecting margins.
- **High marketing expenses** impacting net margins.
- Competitive industry with **changing consumer preferences**.

**Final Verdict:**
📌 **Kalyan Jewellers is a strong long-term investment with solid revenue growth, expanding market presence, and brand strength. However, short-term fluctuations due to gold prices and marketing expenses should be considered.**

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- 📈 **Revenue is consistently growing**, reflecting strong sales momentum.
- 📉 **Net Profit increased significantly** in Q3 2024, indicating improved profitability.
- 🔺 **Expenses have also risen**, mainly due to material costs and marketing spend.

This confirms that **Kalyan Jewellers is on a strong growth trajectory**, making it a solid **long-term investment**. 💎📊