KOCHI: Kalyan Jewellers shares continued their downward spiral on Wednesday, tumbling 6.92 per cent to Rs551.10 on the NSE.
Kalyan Jewellers stock has now corrected nearly 31 per cent from its record high of Rs794.60, reached on January 2, 2025. Over the past seven trading sessions leading up to January 13, the stock shed a staggering 27.31 per cent, sparking investor concerns.
A brief rebound of 4.22 per cent on January 14 offered some respite but failed to reverse the overall bearish sentiment.
Amid the turbulence, Kalyan Jewellers conducted an investor call on January 14 to address market speculation and reassure stakeholders. The management dismissed rumours of any FIR filed against the company’s promoters and emphasised that its operations remain robust. Highlighting a strong Q3 FY25 performance, the company reported a 39 per cent year-on-year growth in sales, driven by approximately 24 per cent same-store sales growth during the quarter.
Kalyan Jewellers also unveiled aggressive expansion plans, having launched 24 new showrooms in Q3 FY25 and aiming to open 80 Kalyan and 50 Candere outlets in India by the end of FY25.
Aiming 170 new shops
For FY26, the company is targeting 170 new showrooms across its formats, underscoring its confidence in future growth despite current market volatility.
The company acknowledged inventory losses, primarily incurred in Q2 FY25, but reiterated that these factors are non-recurring and unrelated to the recent stock movement. Management attributed the sharp decline in share prices to market forces beyond its control and reaffirmed its commitment to long-term value creation.
Headquartered in Kerala, Kalyan Jewellers is one of India’s largest jewellery retailers, with a growing presence in the Middle East. The company’s revenue from operations grew 37.4 per cent year-on-year to Rs6,065.48 crore in Q2 FY25, even as its consolidated net profit saw a marginal decline of 3.43 per cent to Rs130.61 crore compared with Rs135.25 crore in the corresponding quarter last year.
