Midcap Jewellery Stock To Buy For Aggressive 50% Upside, Recommends Dividend, Says ICICI Securities

Leading brokerage firm ICICI Securities maintains Buy on the stock of Kalyan Jewellers India Ltd. in its recent equity report on the company. The brokerage assigned a target price of Rs. 107.15/share for 50% potential gains.

On 15th May 2023, in their Board meeting, the company recommended a final dividend of Rs 0.5 paise per equity share of Rs 10 each i.e. 5% for the financial year 2022-23.

Kalyan Jewellers is India's leading jewellery store chain with a presence in major cities. This is a midcap company with a market valuation of Rs. 11,0387.02 crore.

Recommends Dividend

"The Board has recommended a final dividend of Rs. 0.50 paise (5%) per equity share of Rs.10 each for the financial year ended March, 31, 2023, subject to the approval of shareholders;" the company said in an exchange filing.

Buy stock for a target price of Rs. 160/share

ICICI Securities said, "Our earnings estimates are largely unchanged; modelling revenue and EBITDA CAGRs of 21% and 21% over FY23-FY25E. Maintain BUY with a DCF-based unchanged target price of Rs160. Key risks: delay in showroom expansion and potentially higher competitive intensity in core south India markets."

Stock Outlook - Current Market Price, 52 Week low/High & Returns

On Wednesday, the stock last traded at Rs. 107.15/share on NSE, 1.11% down from its previous close of Rs. 108.35/share. Its 52-week high at Rs. 134.20/share and 52-week low at Rs. 55.05/share, respectively.

It jumped 2.14% in the past 1 week, and 3.58% in the past 1 month, respectively. It jumped 68.61% in the past 1 year. Since the listing on 26 March 2021, its share value jumped 42.49%.

Disclaimer - The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.