A nugget worth prospecting: Why Kalyan is being seen as a gold mine

Stock up over 60% in a month on strong sales, asset-light network expansion

The sharp jump in shares of Kalyan Jewellers (Kalyan) has surprised many on the Street; however, analysts believe more steam could be left in the stock as the Thrissur-based gold retailer pivots to a new asset-light network expansion model.

Kalyan’s stock has surged 62 per cent in the past month, even as the S&P BSE SmallCap Index has gained just 5 per cent. 

In its latest business update, the company said its consolidated sales grew more than consensus expectations at 31 per cent year-on-year, led by strong domestic sales regardless of the volatility in gold prices.
 

Further, the company demonstrated rapid