Investment Thesis
Retail-Led Margin Expansion
o Launch of a 10,000 sq. ft. flagship showroom in Jan 2026 (Pongal season)
projected to add ₹550–600 crore revenue annually at 12–13% EBITDA margins.
o Retail share expected to rise from 10% to 30% by FY2027, lifting overall margins
toward 5%.
Robust Growth & Financial Strength
o Revenue surged from ₹258 crore (FY22) to ₹1,773 crore (FY25), a ~37% CAGR.
o Debt-to-equity reduced sharply from 2.94x (FY21) to 0.28x (FY25); ROE steady at
~22%.
Digital Initiatives & Product Diversification
o Gold Savings App and upcoming e-commerce platform target younger customers.
o Expanding into diamond jewellery (including lab-grown) and premium temple
jewellery.
Strong Industry Tailwinds
o Jewellery sector to grow ~9% CAGR to ₹11.2 lakh crore by 2030.
o Organised share rising to 36–38%, aiding compliant branded players like
Khazanchi.
Attractive Valuation Upside
o Trades at ~21x P/E vs Titan (84x) and Kalyan (55x).
o Comparable margins; rerating potential from expanding retail footprint.Buy Call on Khazanchi Jewellers_21 Nov 2025
BUY : KHAZANCHI( KHAZANCHI ) [543953]
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