Kalyan Jewellers Share Declines After Six-Day Rally as Profit Booking Kicks In

Mumbai, July 16: Kalyan Jewellers share price fell as much as 2.6% on Thursday, snapping a six-session winning streak as investors locked in gains after a spectacular rally. 

The stock fell, marking its first decline since the rally began. Despite the pullback, Kalyan Jewellers remains among the better-performing consumer discretionary stocks this year, having rebounded sharply from recent lows on the back of strong business updates and renewed brokerage optimism. As of writing the stock was down 0.7% at Rs 544.25. 

Sharp rally fuels profit booking 

Thursday’s decline was largely attributed to profit booking after the sharp run-up, with investors choosing to lock in gains rather than a change in the company’s underlying fundamentals. 

The recent rally also helped the stock swing into positive territory for the year.  

Bullish call sparked the rally 

The surge in Kalyan Jewellers shares gathered momentum after brokerages reiterated ‘Buy’ rating on the stock while maintaining a target price of Rs 750. 

Stock fell after racing over the previous six sessions. Source: NSE 

Even after the recent rally, the target implies meaningful upside from current levels, helping sustain investor interest. 

Brokers acknowledged that the company’s June-quarter revenue growth came in slightly below expectations but said the miss did not alter positive long-term investment thesis. 

According to the brokerages, Kalyan Jewellers’ franchise-led expansion strategy, improving return ratios and strong execution continue to support growth outlook. 

Strong business update lifts sentiment 

Investor confidence was further supported by the company’s June-quarter business update, which highlighted resilient demand despite seasonal headwinds. 

Kalyan Jewellers reported 38% year-on-year growth in consolidated revenue, driven by 28% same-store sales growth in its India business. 

The performance was particularly noteworthy as the quarter included the 28-day Adhik Maas period, during which jewellery purchases typically slow because of religious beliefs. 

The company’s international operations also remained robust, with revenue rising around 35%, while its West Asia business posted approximately 30% growth. Overseas markets contributed nearly 14% of consolidated revenue during the quarter.  

Candere continues to impress 

Another key driver of investor optimism has been the strong momentum in Candere, Kalyan Jewellers’ digital-first jewellery business. 

Brokerages believe Candere is emerging as an important long-term growth engine as the company expands its omnichannel presence and targets younger consumers through online and offline formats. 

Analysts expect the combination of healthy same-store sales growth, aggressive store expansion and improving contribution from Candere to support earnings growth over the medium term. 

The company has continued to expand its franchise-led showroom network, a strategy that enables rapid expansion while maintaining capital efficiency.  

Analysts remain constructive 

While Thursday’s decline reflects near-term profit booking, market experts believe the broader investment case for Kalyan Jewellers remains intact. 

India’s organised jewellery sector continues to benefit from increasing formalisation, rising disposable incomes and a growing preference for trusted branded retailers. 

Kalyan Jewellers has been steadily gaining market share through store additions, stronger customer engagement and premium product offerings. 

Analysts also expect the company to benefit from continued wedding demand and improving discretionary spending, although fluctuations in gold prices and consumer sentiment remain key variables to watch. 

Outlook 

Following the rally in the previous six sessions, some consolidation in the stock is widely seen as healthy. 

The focus will now shift to the company’s June-quarter earnings, which investors will closely scrutinise for updates on margins, store expansion, franchise additions and the performance of the Candere business. 

Although the recent surge has pushed valuations higher, brokerages continue to see long-term growth potential, citing strong execution, a scalable business model and sustained demand for organised jewellery retail. 

For now, Thursday’s decline appears to reflect profit booking after an exceptional rally rather than a deterioration in the company’s fundamentals, with investors likely to remain focused on earnings and management commentary for the next trigger. 

Source:

•  https://www.nseindia.com/get-quote/equity/KALYANKJIL/Kalyan-Jewellers-India-Limited