Kalyan Jewellers India vs PC Jeweller: Best Jewellery Stocks

Company Overview of PC Jeweller Ltd

PC Jeweller Limited, an Indian company, specializes in the manufacturing, selling, and trading of jewelry. The company offers a diverse selection of jewelry, including gold that is 100% hallmarked. It is involved in the trading, manufacturing, and selling of various jewelry items such as gold, diamond, silver, precious stones, gold jewelry, diamond-studded jewelry, and silver articles in different designs. 

The company offers a variety of ring types, including daily wear, engagement, solitaire, cocktail, office wear, men’s, floral, hearts, round, square, and triangle. Earrings types range from drops, hoops, jhumkas, sui dhaga, ear cuffs and flowers. 

Company Overview of Kalyan Jewellers India Ltd

Kalyan Jewellers India Limited is an Indian jewelry retailer specializing in a wide range of jewelry products including gold, diamond, pearl, white gold, gemstone, platinum, and silver. The company offers various brands such as Mudhra, Anokhi, Rang, Vedha, Tejasvi, Apoorva, Ziah, Laya, and Glo, featuring items like chains, rings, necklaces, earrings, bracelets, and bangles in gold, white gold, and platinum. 

Services provided by My Kalyan include jewelry purchase advance schemes, gold insurance, wedding purchase planning, advance booking of purchases to mitigate price increases, sale of gift vouchers, and gold buying tips and education.  

The Stock Performance of PC Jeweller Limited

The table below displays the month-by-month stock performance of PC Jeweller Ltd for the past year.

The Stock Performance of Kalyan Jewellers India Limited

The table below displays the month-by-month stock performance of Kalyan Jewellers India Ltd for the past year.

Fundamental Analysis of PC Jeweller

PC Jeweller Ltd is a prominent Indian jewelry retailer founded in 2005. Headquartered in New Delhi, the company specializes in offering a wide range of gold, diamond, and gemstone jewelry, catering to various customer preferences. With a strong network of showrooms across India, PC Jeweller has established itself as a trusted brand known for its quality and craftsmanship.  

The stock is currently priced at ₹12.04, with a market capitalization of ₹7,922.40 crore; while it has demonstrated an impressive 1-year return of 120.11%, there has been a recent 1-month decline of 16.80%. Despite a strong 5-year CAGR of 46.57%, the stock is 60.30% below its 52-week high. 

• Close Price ( ₹ ): 12.04
• Market Cap ( Cr ): 7922.40  
• 1Y Return %: 120.11
• 6M Return %: 22.83
• 1M Return %: -16.80
• 5Y CAGR %: 46.57
• % Away From 52W High: 60.30
• 5Y Avg Net Profit Margin %: -24.30 

Fundamental Analysis of Kalyan Jewellers India

Kalyan Jewellers India Limited, founded in 1993 by T.S. Kalyanaraman in Thrissur, Kerala, is one of India’s largest jewellery retailers. The company offers a wide range of gold, diamond, silver, platinum, and gemstone jewellery under various brands, including Mudhra, Nimah, Anokhi, and Tejasvi. Kalyan Jewellers operates over 150 showrooms across India and the Middle East. The company emphasizes transparency and customer education, aiming to provide quality products and services. 

The stock is currently priced at ₹507.05, with a market capitalization of ₹54,299.92 crore. Over the past year, it has returned 35.52%, but the 6-month return is down by 7.73% and 9.13% in the last month. The stock is 56.87% below its 52-week high, showing significant correction.   

• Close Price ( ₹ ): 507.05
• Market Cap ( Cr ): 54299.92
• Dividend Yield %: 0.23 
• 1Y Return %: 35.52
• 6M Return %: -7.73
• 1M Return %: -9.13 
• % Away From 52W High: 56.87
• 5Y Avg Net Profit Margin %: 1.93 

Financial Comparison of PC Jeweller and Kalyan Jewellers India

The table below shows a financial comparison of PC Jeweller Ltd and Kalyan Jewellers India Ltd.

Points to be noted:

• (TTM) Trailing 12 Months – Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company’s performance data when reporting financial figures.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
• PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
• PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
• Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
• EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
• DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
• Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.

Dividend of PC Jeweller and Kalyan Jewellers India

The table below shows a dividend paid by the company.

Advantages and Disadvantages of Investing in PC Jeweller

PC Jeweller Ltd

The primary advantage of PC Jeweller Ltd is its strong brand recognition and wide range of jewelry products, catering to both premium and affordable segments. The company’s extensive retail network and focus on gold, diamond, and platinum jewelry position it as a significant player in the Indian jewelry market.

1. Wide Product Range – PC Jeweller offers a comprehensive range of jewelry, including gold, diamond, and platinum pieces, serving both affluent and middle-class customers. Its diverse product offerings help maintain a broad market appeal and drive sales growth.
2. Strong Retail Presence – The company operates a large number of showrooms across India, providing easy accessibility to customers. Its retail footprint is an essential factor in driving brand visibility, customer acquisition, and consistent revenue generation.
3. Focus on Innovation and Design – PC Jeweller invests in designing unique, high-quality jewelry to cater to evolving customer tastes. The company’s focus on innovation and craftsmanship helps it maintain a competitive edge in the fast-evolving jewelry industry.
4. Online and Digital Expansion – The company is increasingly focusing on online sales channels and e-commerce platforms to reach a broader audience. Its expansion into the digital space allows it to capture the growing online shopping trend, boosting overall revenue.
5. Financial Growth and Stability – PC Jeweller has shown consistent revenue growth and profitability, backed by its strong brand presence and extensive market reach. Its diversified product portfolio and retail expansion contribute to long-term financial stability and growth. 

The main disadvantage of PC Jeweller Ltd is its dependence on the volatile gold and diamond markets, which exposes the company to fluctuating gold prices, changing consumer sentiment, and economic uncertainties, all of which can impact revenue and profit margins.

1. Gold Price Fluctuations – As a significant player in the gold jewelry market, PC Jeweller is heavily dependent on gold prices, which are subject to global fluctuations. Rising gold prices can increase production costs and reduce consumer demand, affecting profitability.
2. Intense Industry Competition – The jewelry sector is highly competitive, with established players like Tanishq, Kalyan Jewellers, and Malabar Gold. PC Jeweller must continuously innovate and offer competitive pricing to maintain market share and customer loyalty amidst this fierce competition.
3. Economic Sensitivity – PC Jeweller’s performance is tied to consumer spending patterns, which can be affected by economic slowdowns or uncertainty. During periods of recession or economic downturns, luxury goods like jewelry often experience reduced demand, impacting sales.
4. Regulatory and Tax Risks – The jewelry industry faces heavy regulation in terms of taxation, imports, and quality standards. Any changes in government policies or increased taxes on gold and precious metals could lead to higher operating costs, reducing profitability.
5. Dependence on Physical Stores – Despite expanding its online presence, PC Jeweller still relies heavily on its retail showrooms. A slowdown in foot traffic or rising rental costs for stores could affect sales volumes and overall growth.

Advantages and Disadvantages of Investing in Kalyan Jewellers India

Kalyan Jewellers India Ltd

The primary advantage of Kalyan Jewellers India Ltd is its strong brand recognition and wide geographical presence, making it one of the leading jewelry retailers in India. With an extensive portfolio of gold, diamond, and platinum jewelry, it caters to a diverse range of customers, enhancing market reach.

1. Wide Product Range – Kalyan Jewellers offers a broad array of jewelry, including gold, diamonds, platinum, and wedding collections. This diversity caters to customers across various price segments, ensuring the company appeals to a larger audience, both urban and rural.
2. Strong Retail Network – With over 150 showrooms across India and abroad, Kalyan Jewellers has a strong physical retail presence. This vast network helps enhance brand visibility, builds customer trust, and contributes significantly to its revenue generation.
3. Focus on Customization and Design – Kalyan Jewellers is known for its unique jewelry designs and emphasis on personalized customization. This focus on craftsmanship and quality helps the brand maintain a competitive edge in the premium jewelry market and enhances customer satisfaction.
4. Strategic Partnerships – The company has established strategic alliances with well-known designers and celebrities to further enhance brand visibility. These partnerships help Kalyan Jewellers strengthen its market position and attract new customers through high-profile collaborations and endorsements.
5. Financial Growth and Stability – Kalyan Jewellers has demonstrated consistent financial growth over the years, supported by a diverse product portfolio and expansion in international markets. The company’s strong market presence and robust revenue streams position it for long-term stability and growth.

The main disadvantage of Kalyan Jewellers India Ltd is its dependence on fluctuating gold prices, which impacts its profit margins. As gold prices rise, the company faces higher costs, and consumer demand may decline, leading to reduced sales and lower profitability.

1. Vulnerability to Gold Price Fluctuations – Kalyan Jewellers’ business is heavily influenced by gold prices. Any rise in prices can increase the cost of goods sold and reduce consumer demand, impacting both margins and overall profitability, especially during economic downturns.
2. High Competition in the Jewelry Sector – The company faces stiff competition from other large jewelry retailers like Tanishq, Malabar Gold, and regional players. To stay ahead, Kalyan Jewellers must consistently offer competitive pricing and unique designs, which can strain profitability.
3. Regulatory and Tax Risks – The jewelry industry is subject to rigorous regulations and tax policies. Changes in government policies related to taxation on gold imports or value-added tax can directly impact the company’s cost structure and operating efficiency.
4. Dependence on Physical Retail Presence – Despite expanding its online platform, Kalyan Jewellers still relies significantly on its brick-and-mortar stores. High rent costs and lower footfall during off-seasons can affect its operational costs and profitability in some regions.
5. Economic Sensitivity – Jewelry is often considered a luxury item, and economic slowdowns can negatively impact consumer spending. Kalyan Jewellers is susceptible to declining sales during economic recessions, where customers may prioritize essential goods over discretionary purchases like jewelry.

How to Invest in Kalyan Jewellers India and PC Jeweller Stocks?

To invest in Kalyan Jewellers India and PC Jeweller stocks, you need to open a demat and trading account with a registered stockbroker, conduct research, and carefully analyze their market position and financial health.  

1. Open a Demat and Trading Account – Choose a reputable stockbroker like Alice Blue to open a demat and trading account. This account enables you to buy, sell, and hold stocks like Kalyan Jewellers and PC Jeweller securely in electronic form.
2. Analyze the Financials – Conduct detailed research on Kalyan Jewellers and PC Jewellers by reviewing their financial statements, growth prospects, and market performance. Understanding their profitability, debt levels, and sectoral trends will help you make informed investment decisions.
3. Use a Trusted Stockbroker – Trading through Alice Blue ensures you have access to real-time market data, investment tools, and expert analysis, helping you navigate the stock market effectively and make informed decisions when buying Kalyan Jewellers and PC Jeweller shares.
4. Place Buy Orders Strategically – Once you have decided on the number of shares to purchase, place your buy orders for Kalyan Jewellers or PC Jeweller on the Alice Blue platform. Choose between market orders or limit orders, depending on current stock prices.
5. Monitor and Manage Investments – Regularly track your investments in Kalyan Jewellers and PC Jeweller through your trading platform. Stay updated with industry news, company earnings reports, and market trends to optimize your investment portfolio and adjust strategies when necessary.

PC Jeweller vs. Kalyan Jewellers India – Conclusion

PC Jeweller is known for its wide product range and competitive pricing in the affordable jewelry market. However, its dependence on gold price fluctuations and high competition from larger players affect its profitability, making it a relatively riskier investment for long-term growth.

Kalyan Jewellers has a strong retail network and brand recognition, excelling in both premium and affordable segments. However, its dependence on volatile gold prices and the competitive nature of the jewelry market pose challenges to consistent profitability and long-term financial stability. 

PC Jeweller vs. Kalyan Jewellers India – FAQ.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.