Kalyan Jewellers stock plunges 28% in Jan, over Rs 21k cr mcap wiped out

In an analyst call on Tuesday the company's management had dismissed concerns around corporate governance

The shares of jewellery retailer Kalyan Jewellers declined nearly 8 per cent on Wednesday closing at Rs 550 apiece, recording a total loss of Rs 21,850 crore in market capitalisation in January so far.

 

The share closed at the lowest since August 2024 and has corrected nearly 28 per cent in this month. The sharp decline follows an exceptional bull run of 9-times return in the scrip from the issue price in March 2021.

 

The correction in stock has continued despite strong commentary by the management.

 

In an update for the December quarter, the jeweller had reported a consolidated revenue growth of approximately 39 per cent year on year while India operations witnessed revenue growth of 41 per cent during the same period quarter on quarter.

 

 

The company had stated that it was led by very strong festive and wedding demand.

 

It launched 24 Kalyan showrooms during the quarter and has drawn up plans to launch 170 showrooms in financial year 2026 (FY26) across Kalyan and Cendere formats. Candere is the company’s digital-first jewellery platform.

 

The sharp decline was despite the strong dismissal of rumours by promoters on corporate governance, share pledge, concerns around auditors, and allegations of colluding with fund managers to write the price in the market.

 

“The pledge of shares reflecting against the promoter name...was to acquire shares from Warburg Pincus. And one thing which we can say is that before entering into promoter financing agreement, we have given enough attention to liquidity and pledger levels and have controlled our exposure accordingly,” said Ramesh Kalyanaraman, promoter and executive director of the company during an analyst call on Tuesday.

 

The company’s management further refuted the rumours on “bribing fund managers” terming the allegations as “absurd”.

 

“We have always conducted our business and our interactions with all stakeholders are with a very high level of integrity and transparency,” added Kalyanaraman.

 

The company’s board is scheduled to meet on January 30 to approve the financial results of the quarter ending December.

 

In an earlier report dated January 8, ICICI Securities had estimated revenue CAGR (standalone jewellery) of around 31 per cent for Kalyan over FY24-26E.

 

“We increase our earnings estimates by 4/3 per cent for FY25-26E, modelling revenue/EBITDA/ PAT CAGR of 31 per cent/ 28 per cent/ 45 per cent over FY24-26E. Maintain ADD with a revised DCF-based target price of Rs 770 (vs Rs 740 previously),” noted the research report.