The shares of jewellery retailer Kalyan Jewellers witnessed a dip of nearly 8% on Wednesday, closing at ₹550 apiece. This marks a total market capitalisation loss of approximately ₹21,850 crore in January so far, according to a Business Standard report.
The stock has reached its lowest point since August 2024, having corrected by almost 28% this month. This decline follows a rally since March 2021, where the share price reportedly saw a nine-fold increase from its issue price.
Despite the downturn, the company’s management has shared positive updates. For the December quarter, Kalyan Jewellers reported a consolidated revenue growth of around 39% year-on-year, with its Indian operations posting a 41% revenue increase quarter-on-quarter. This growth was attributed to strong festive and wedding season demand.
The company also expanded its footprint during the quarter, inaugurating 24 new showrooms and outlining plans to open 170 additional Kalyan and Candere outlets in the 2025-26 financial year. Candere is Kalyan’s digital-first jewellery platform.
However, the stock decline persisted despite management’s efforts to address market concerns. Rumours regarding corporate governance, share pledges, and alleged collusion with fund managers have circulated recently. The company’s promoters have denied these claims.
Ramesh Kalyanaraman, promoter and executive director of the company, explained during an analyst call that share pledges linked to the promoter were undertaken to acquire shares from Warburg Pincus. He assured stakeholders that the company has carefully managed its liquidity and exposure.
The management also dismissed allegations of bribing fund managers as baseless, reaffirming their commitment to maintaining high levels of integrity and transparency in their operations.
The company’s board is scheduled to meet on January 30 to review and approve the financial results for the December quarter. Meanwhile, analysts remain cautiously optimistic. A report by ICICI Securities on January 8 projected a standalone jewellery revenue CAGR of about 31% for FY24-26E. The report also revised the target price for Kalyan Jewellers to ₹770, up from ₹740 previously, while maintaining an “Add” rating.
