Titan Vs Kalyan Jewellers: Which jewellery stock to buy amid rising gold rate?

livemint.com:

Kalyan Jewellers India who have seen robust revenue growth in the quarter ended March 2024. In Q4FY24, both Titan Company and Kalyan Jewellers continued to report strong demand prints. The same store sales growth (SSSG) too remained healthy at more than 15% and robust double-digit for Kalyan Jewellers and Titan, respectively.

However, Kalyan Jewellers continues to outperform Titan and analysts at ICICI Securities believe that this outperformance will continue going ahead. Also Read: Stocks to buy: Four top stock picks for April by Yes Securities Here’s a comparison between Titan and Kalyan’s Q4 numbers. Kalyan’s India jewellery revenue growth was around 38% year-on-year (YoY).

This was significantly higher than Titan’s domestic jewellery revenue growth of 19% YoY. This performance has been achieved despite significant inflation in gold prices in the second half of the quarter. Kalyan Jewellers benefits from rapid retail expansion through its capital-light franchisee-owned, company-operated (FOCO) model.

Further, Kalyan highlighted that SSSG was at its highest in Q4 (>15% YoY; as compared to the previous three quarters) driven by a strong ramp-up of new showrooms opened in the last 18 months. “Kalyan’s store addition (India) guidance for FY25, at 80 stores, provides high visibility of revenue growth in FY25 (new store additions + SSSG + ramp-up of stores opened in FY23-24). We reiterate our view of Kalyan outperforming Titan (in revenue) in FY24 and H1FY25," analysts at ICICI Securities said in a report.