Kalyan Jewellers India Ltd. shares continued their downward trend, extending losses for the fifth consecutive session. The stock witnessed a 3.24% decline early on January 9, 2025, reaching a trading price of ₹686.35. This decline follows a consistent dip in the stock’s value since hitting its all-time high of ₹794.60 on January 2, marking a drop of over 10% within a week.
This downward trend has drawn attention from investors considering opportunities to buy shares online.
Quarterly performance and future outlook
Earlier this week, Kalyan Jewellers released its third-quarter (Q3 FY25) business update, reporting consolidated revenue growth of approximately 39% year-on-year (YoY). The company attributed this growth to exceptional festive and wedding demand across gold and studded jewellery categories in India, where revenues surged by 41%. Same-store sales registered a strong increase of 24% during the quarter.
Kalyan Jewellers has been actively expanding its retail footprint, launching 24 Kalyan showrooms across India during the third quarter. For the ongoing quarter, the company plans to open 30 additional Kalyan showrooms and 15 Candere showrooms in India.
As part of its broader strategy, the company aims to launch a total of 170 showrooms in FY26 across its Kalyan and Candere formats, with 75 Kalyan showrooms in non-south India, 15 in south India and international markets, and 80 Candere showrooms in India.
Analyst projections and ratings
One brokerage firm has maintained a positive outlook on Kalyan Jewellers, revising its target price to ₹770 per share from ₹740. The firm highlighted the company’s revenue growth potential and ongoing retail expansion as key factors for its constructive stance.
For Q2 FY25, Kalyan Jewellers reported consolidated net revenue of ₹6,065.48 crore, marking a 9.57% year-on-year increase. However, the company’s operating profit saw a decline of 19.39%, down to ₹242.27 crore, with profit after tax falling by 26.53% to ₹130.61 crore. The operating margin also dropped to 3.99%, a significant 28.53% decrease from the same period last year.
These insights provide valuable context for those who want to buy shares online.
Trading trends and technical analysis
Since hitting its peak, the stock has been under consistent selling pressure, with market analysts identifying key technical levels to watch. The immediate support is placed at ₹654, while resistance is seen at ₹700. If the stock closes below the support level, it could potentially slide further toward ₹600.
Market experts suggest that the recent decline follows the stock’s record high, prompting investors to book profits. The ₹700 mark is being viewed as a critical resistance level, and some analysts recommend that investors who bought at lower levels consider exiting their positions.
Additionally, they note that the stock has entered a consolidation phase, indicating a potential slowdown in upward momentum for the time being.
Promoter holdings and financial metrics
As of September 2024, promoters held a 62.90% stake in Kalyan Jewellers. The stock’s price-to-equity (P/E) ratio stood at 124.87, with a price-to-book (P/B) value of 16.80. Earnings per share (EPS) were reported at ₹5.67, and the return on equity (ROE) was 13.46%.
Market insights
The company’s expansion strategy, focusing on both Kalyan and Candere formats, is aimed at capitalising on this momentum. However, the stock’s recent decline has raised concerns among investors, prompting many to reassess their positions.
Buying shares online has become increasingly popular among retail investors. Platforms offering seamless access to stock trading enable individuals to monitor market trends and invest in companies like Kalyan Jewellers with ease.
Those considering buying shares online should closely evaluate market conditions, company fundamentals, and technical indicators to make informed decisions.
Conclusion
At 10:58 AM on January 9, the shares of Kalyan Jewellers India Ltd. were trading 3.24% lower at ₹686.35 per share, compared to the previous close of ₹706.40 on the National Stock Exchange (NSE). The consistent decline reflects broader market sentiment and profit booking at current levels.
Investors are advised to stay updated and consider their investment strategies carefully when planning to buy shares online.
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