This post on Kalyan Jewellers IPO attempts to bring out consolidated brokerage views , subscription information, Grey Market Premium (GMP) and anchor investor information where applicable. The information collated from various sources and reports in public domain can help investors to decide whether they should subscribe to Kalyan Jewellers IPO or not.

Related Posts : Kalyan Jewellers IPO Review

Kalyan Jewellers IPO: Grey Market Premium etc.

  • 16-03-21 GMP 7-8 (few deals)

Subscription: Kalyan Jewellers IPO ( x times)

Day / X timesQIBNIIRetailEmpTotal 
Day 32.791.932.853.782.64
Day 20.240.891.901.911.21
Day 10.000.201.121.160.6
Total Retail Applications 594009
Appl wise Retail2.17 x

Consolidated Brokerage Views on Kalyan Jewellers IPO

Angel :”Titan company has a better financial track record compared to KJIL. Going forward, we believe that KJIL would perform better on the back of a strong brand and number of stores in India & internationally. Thus, we recommend a subscribe rating on the issue.”

Capital Market : ” Score 42/100 ; Among the comparable peer listed companies, Titan Company having healthy track record is trading at 87.7 times consolidated EPS of Rs. 16.9 for FY2020, while Tribhovandas Bhimji Zaveri is trading at 24.0 times consolidated EPS of R 3.2 for FY2020 and PC Jewellers is trading at 17.5 times consolidated EPS of R 1.8 for FY2020.In terms of m-cap to revenues ratio, Kalyan Jewellers valued at R 8961 crore at upper price band of R 87 per share is offered at m-cap to revenues ratio of 0.89 times consolidated FY2020 revenues. Among the peers, Titan Company is trading 6.34 times consolidated FY2020 revenues, while Tribhovandas Bhimji Zaveri is trading at 0.28 times consolidated FY2020 revenues and PC Jewellers is also trading at 0.28 times consolidated FY2020 revenues.”

Choice Broking: “At higher price band of Rs. 87, the company is demanding a TTM P/S valuation of 1.2x, which is at a significant premium to the peer average of 0.4x (excluding Titan Company Ltd.). Thus considering the above observations we assign an “AVOID” rating for the issue.”

Dalal Street Investment Journal: “At the upper price band of Rs 87, the company is demanding a market capitalisation of Rs 8,961 crore, valuing it at 58 times FY20 diluted earnings. Titan trades at 85 times FY20 earnings given its superior performance. Kalyan Jewellers is expanding pan-India to take advantage of organised sector growth. It has focused on advertising, top-notch retail stores outlet for building trust, and localising the design for winning customers. Going forward, we believe that Kalyan Jewellers would perform better on the back of a strong brand and also, due to its number of stores in India & internationally. Thus, we recommend a subscribe rating on the issue.”

Geojit: “Given forecasted improvement in profitability & balance sheet, India’s appetite for gold, strong pan India presence, brand recall and diversified product offering, we assign a “Subscribe” rating on a long-term basis..”

KR Choksey : “At the upper band of issue price, Kalyan Jewellers will trade at an EV/EBITDA multiple of 22x of its annualized 9MFY21 revenue, which is at a discount to its listed peer like Titan (79.8x), however it is likely to trade at a premium to its peers like TBZ Ltd (7.5x). Looking at the growth potential in the company we anticipate listing gains and give a ‘SUBSCRIBE’ rating to Kalyan Jewellers India Ltd IPO.”

SMC: “Score 2/5 ; Kalyan Jewellers India Limited is one of largest Jewellery companies in India and has an established brand name. The company’s domestic showrooms covered a total aggregate area of 465235 sq. ft. and Middle East showrooms covered a total aggregate area of 38056 sq. ft. For the FY18 to FY20 and 9 months period ended on December 31, 2020, the company’s advertisement spending was in the range of 2.07% to 3.04%. Despite having a strong brand name, financial performance of the company is not attractive. Jewellery business itself remained quite risky.”

SP Tulsiyan Website: “Company has a lot of financial ground to cover to come close to Titan. Thus, on weaker fundamentals and aggressive pricing, we assign an ‘avoid’ to the IPO.”

Swastika: “Despite having a strong brand name, financial performance of the company is not attractive. Jewellery business itself remained quite risky while already listed player like Thangamyil which has better revenue and profitability growth with much better ROE is available at very cheap valuations compare to Kalyan. By looking expensive valuations and lackluster financials we assign an “avoid” rating to this IPO.”

MORE WILL BE ADDED AS THEY BECOME AVAILABLE

Standard disclaimer: Standard disclaimer: I am not a SEBI registered analyst /investment adviser and above information is collated from various online sources and is for educational purpose only. Please visit individual brokerage sites to read the actual reports. Please do not make your investment decisions based on this info as it is not complete and exhaustive. Please do your own due diligence as stock market investments have high degree of inherent risk.

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