Kalyan Jewellers India, a major player in the diamond and gold jewellery sector, has recently received a ‘Buy’ rating from MarketsMOJO, signalling strong long-term growth potential. The rating comes as a result of the company’s impressive financial performance, with net sales growing at an annual rate of 27.86% and operating profits increasing by 38.90%. The company has posted positive results for five consecutive quarters, reflecting robust financial health.

Technical trends for Kalyan Jewellers’ stock show an upward trajectory, moving from mildly bullish to bullish, supported by key indicators like MACD, Bollinger Bands, and KST. This positive outlook is further bolstered by high promoter confidence, with the company’s promoters increasing their stake by 2.31% in the previous quarter, now holding 62.9% of the company.

In terms of market performance, Kalyan Jewellers has consistently outperformed the BSE 500 index, with an impressive 108.99% return over the past three years. The company’s market cap stands at Rs 72,083 crore, making it the second-largest in the sector, accounting for 17.23% of the industry. With annual sales of Rs 19,708.03 crore, it holds a 5.46% market share in the jewellery sector.

However, despite these positives, the company’s stock carries some risks. Its relatively expensive valuation, with an enterprise value to capital employed ratio of 9.9 and a return on capital employed (ROCE) of 13.5%, has raised concerns. Additionally, while the company’s stock has delivered a high return, profit growth has lagged behind at 27.9%, leading to a high PEG ratio of 4.2.

Overall, Kalyan Jewellers India’s solid growth trajectory and high promoter confidence make it a promising investment in the diamond and gold jewellery market, although its valuation and profit growth rate may warrant caution for potential investors.