JM Financial: 15% gold duty hike to have 'limited impact' on Titan, Kalyan
Gold import duty raised from 6% to 15%. JM Financial expects limited revenue hit for organised jewellers, with possible one-off inventory gains. Key risk flagged: potential RBI curbs on Gold Metal Loan scheme. Titan down 8.81% and Kalyan down 15.28% over the past month.
What happened
JM Financial says gold import duty hike from 6% to 15% will have limited revenue impact on Titan, Kalyan and other jewellers, with one-off inventory gains
Key facts
- 15% gold import duty
- 6% previous duty
- Titan -8.81% 1M
- Kalyan -15.28% 1M
- Titan gold exchange 20% to 50%
- Titan interest cost +71% YoY in 2013-14
Why this matters
Duty-driven margin pressure on unorganised players accelerates formalisation tailwinds—scout regional chains and distressed bullion-dependent operators for tuck-in M&A at compressed multiples.