Rise and Fall of Kalyan Jewellers

In this article we are discussing about Rises and Fall of Kalyan Jewellers. How things has been unfolded in recently listed stock.

 Overview

Kalyan Jewellers India Ltd. is one of India’s largest jewellery retailers, holding approximately 6% of the organised market share as of FY20. Founded by Chairman and MD Mr. T.S. Kalyanaraman, the company offers a diverse range of jewellery to cater to various customer preferences and price points.

 

Product Portfolio

Kalyan’s offerings span wedding jewellery under the Mahurat brand, aspirational handcrafted and traditional designs under brands like Mudhra and Rang, and value-focused regional jewellery under Aishwaryam. Premium studded jewellery is marketed under brands like Nimah and Ziah, while the digital-first lifestyle brand Candere caters to modern buyers.

 

Market Presence

The company operates 1,259 showrooms and stores, including 204 Kalyan and 13 Candere outlets in India and 36 Kalyan showrooms in the Middle East. Its retail footprint exceeds 7,55,000 sq. ft. Consolidated revenues rose 46% between FY22 and FY24, supported by store additions and same-store sales growth.

 

Hyperlocal and Asset-Light Model

Adopting a hyperlocal strategy, Kalyan sources jewellery from local artisans via 13 procurement centres. The transition to a Franchisee Owned Company Operated (FOCO) model has led to 105 FOCO showrooms, improving margins and reducing capital investments.

 

Financial Strategy

In FY24, the company repaid ₹434 crore in non-GML loans and aims to reduce debt by another ₹300-350 crore in FY25. Profits are partly reinvested into debt reduction to strengthen financial health.

 

Expansion Plans

Kalyan plans to open 136 new showrooms in FY25, including ventures into metro cities, Tier 1-3 towns, and the US market, reinforcing its growth trajectory.

 

Recent News:-

·         Kalyan Jewellers' stock experienced a significant decline of nearly 28%, resulting in a loss of approximately ₹21,850 crore in market capitalization. This downturn was accompanied by allegations of corporate governance issues, including claims of collusion with fund managers to manipulate stock prices. The company's management strongly refuted these allegations, emphasizing their commitment to integrity and transparency. They clarified that the share pledges were related to acquiring shares from Warburg Pincus and were managed with careful attention to liquidity and exposure levels.

 

·         They even told that they don’t have any plans to buy aircrafts in the company’s books except from the Helicopter and there are no plans to sell it.

 

Company financials:-

 

	Mar-18	Mar-19	Mar-20	Mar-21	Mar-22	Mar-23	Mar-24	TTM
Sales	10,505	9,771	10,101	8,573	10,818	14,071	18,548	21,359
Operating Profit	774	620	799	624	853	1,165	1,368	1,379
OPM %	7%	6%	8%	7%	8%	8%	7%	6%

 

You can see that company reported revenue increase from 10,000 crores to 21000 crore i.e. Revenues are more than doubled and operating profit has been increase from Rs.774 crores to Rs.1379 crores.

 

Stock performance:-

You can see that after listing in 2021 at Rs.75.20 per share stock has given returns of 578% at price of Rs.510 per share this is despite sharp decline due to recent allegations on promoters as mentioned above.  The stock is corrections since the allegations erupted.

 

The said returns are without considering dividend. Now lets see dividend paid by the company:-

Announcement Date	Ex-Dividend Date	Dividend Type	Dividend (Rs)
10-May-24	09-Aug-24	Final	1.2
15-May-23	04-Aug-23	Final	0.5
		Total	1.7

 

Textile Giant: Arvind Limited 4400% returns

 

In this article we will discuss about textile giant which is well known name in whole Industry company name is Arvind Limited.

Arvind Limited: Overview and Business Highlights

Arvind Limited is a leading vertically integrated textile company in India with over eight decades of industry presence. As one of the largest denim manufacturers globally, it also produces a variety of cotton shirting, denim, knits, and bottom-weight fabrics, along with jeans and shirt garments.

Key Business Segments

1.       Textiles (84% of Revenue):
Arvind’s vertically integrated operations span from cotton yarn manufacturing to fabric processing and garment production, providing strong operational flexibility. Revenue contributions in Q3FY24 include Denim (18.5%), Woven Fabrics (46%), Garments (27%), and Others (8.5%).

2.       Advanced Materials (12% of Revenue):
This segment focuses on technical textiles for human protection, filtration, automotive, and construction applications. Products include fire-retardant and abrasion-resistant suits, contributing to 53.5% from Human Protection, 21% from Industrials, and 25.5% from Composites in 9MFY24.

Global Reach and Diversification
Arvind earns 51% of its revenue from exports to key markets like the USA, UK, and EU, with the rest from India. Additionally, the company is involved in water treatment, agriculture, and e-commerce.

Strategic Initiatives
Arvind is focused on reducing its debt, which declined from ₹2,951 crore in FY20 to ₹1,421 crore in September 2023. It is undertaking capacity expansion projects under the PLI scheme and leveraging land monetization initiatives like the "Arvind Forreste" project near Ahmedabad to further improve its financial position.

These efforts, coupled with advanced manufacturing capabilities and innovation, position Arvind Limited as a key player in the global textile industry.

Company financials:-

You can see from below that company profitability has been increased from Rs.723 crores in 2019 to 829 crores and company has stable operating margin. Company is now getting benefits from Bangladesh Turmoil as most of textile business of Bangladesh is now getting shifted to India.

	Mar-19	Mar-20	Mar-21	Mar-22	Mar-23	Mar-24	TTM
Sales +	7,142	7,369	5,073	8,010	8,382	7,738	7,982
Operating Profit	723	708	478	830	828	879	829
OPM %	10%	10%	9%	10%	10%	11%	10%

Stock Performance:-

Company stock has performed very well company stock was trading at Rs.8.77 per share in 2002 and now it is trading at Rs.398 per share on 16.01.2025 giving returns of 4437%. This means that if you have invested Rs.1 Lakh into the stock it has already converted your investment into Rs.44.37 lakh. The said returns are without considering dividend.

Now let’s see how much dividend this company has given over the period of time:-

Announcement Date	Ex-Dividend Date	Dividend Type	Dividend (Rs)
06-May-24	19-Jul-24	Final	3.75
07-May-24	19-Jul-24	Special	1
18-May-23	21-Jul-23	Final	3.75
19-May-23	21-Jul-23	Special	2
17-May-19	29-Jul-19	Final	2
09-May-18	21-Aug-18	Final	2.4
22-May-17	27-Jul-17	Final	2.4
13-May-16	28-Jul-16	Final	2.4
14-May-15	30-Jul-15	Final	2.55
15-May-14	24-Jul-14	Final	2.35
16-May-13	18-Jul-13	Final	1.65
09-May-12	13-Sep-12	Final	1
27-Apr-06	14-Sep-06	Final	1
27-Apr-05	19-Sep-05	Final	1
09-May-18	21-Aug-18	Final	2.4
22-May-17	27-Jul-17	Final	2.4
13-May-16	28-Jul-16	Final	2.4
14-May-15	30-Jul-15	Final	2.55
15-May-14	24-Jul-14	Final	2.35
09-May-18	21-Aug-18	Final	2.4
22-May-17	27-Jul-17	Final	2.4
13-May-16	28-Jul-16	Final	2.4
14-May-15	30-Jul-15	Final	2.55
15-May-14	24-Jul-14	Final	2.35
16-May-13	18-Jul-13	Final	1.65
09-May-12	13-Sep-12	Final	1
27-Apr-06	14-Sep-06	Final	1
27-Apr-05	19-Sep-05	Final	1
		Total	58.1

 

You can see that company has given dividend of Rs.58.1 per share since year 2007 this means at an investment of Rs.8.77 per share it has given returns of 662% on investment i.e. Rs. 6.62 lakh dividend against investment of Rs. 1 Lakh.