Since the company’s stock market debut in March 2021, Kalyan shares have surged by an impressive 780%. Jani noted that during periods of growth and expansion, such as the one Kalyan Jewellers appears to be experiencing, a rebound is expected to follow any corrections in the market.
Kalyan’s rapid transformation into a glitzy destination has resulted in a significant increase in bookings and revenue
Kalyan Jewellers saw a significant 7% drop in Thursday’s trading, marking the fifth consecutive session of decline. Investors viewed last year’s sharp increase in share price as excessive, leading to the sell-off. This downward trend persisted despite a strong quarterly business update earlier in the week, highlighting continued growth prospects. The stock closed at ₹658.1 on Thursday, reflecting a 15% decrease over the past five sessions.
According to Akriti Mehrotra, a Research Analyst at StoxBox, Kalyan Jewellers reported a revenue increase in the quarterly update due to a robust festive season. However, profit booking has caused the shares to fall. In 2024, Kalyan Jewellers shares surged by 111.5%, outperforming the benchmark BSE 500 index, which gained 14.6%.
Hemang Jani, director at Finazenn, an investment advisory, explained that when investors holding a significant portion of a company’s shares decide to book profits, it can have a substantial impact on the share price. Kalyan Jewellers’ shares are primarily held by PMS and mutual funds, which are now selling off after a successful 2024, leading to the current weakness in shares.
Since its stock market debut in March 2021, Kalyan Jewellers’ shares have skyrocketed by 780%. Jani suggested that during a company’s growth and expansion phase, like Kalyan Jewellers, corrections are expected to follow a rebound. As long as the company continues to meet its operating metrics, a sharp sell-off is likely to be followed by a recovery.
Jani reassured that there are no growth concerns regarding Kalyan Jewellers, and the fundamentals remain strong, indicating a potential resurgence in buying interest. Despite the current weak market sentiment and intense profit booking, a rebound is anticipated in the future.
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