Over the last 13 trading days, the price of Kalyan Jewellers' shares has dropped by more than 34%, with losses in 11 of those sessions.
Following a brief respite in the previous session, the share price of Kalyan Jewellers continued to drop in early trade on Tuesday. On the BSE, Kalyan Jewellers' stock fell as high as 5.67% to ₹501.00 a share.The price of Kalyan Jewellers' shares has dropped by more than 36% in the last 13 trading sessions, with losses occurring in 11 of those sessions.
Social media claims of wrongdoing by fund managers at Motilal Oswal Asset Management Company (AMC) regarding the jewelry company's shares sparked the sell-off in Kalyan Jewellers' stock earlier this month.
During their January 14 earnings audio call, Kalyan Jewellers India responded to the allegations, stating that no IT raids had been carried out on its property and calling the bribery claims "absurd."
In a statement, Motilal Oswal AMC denied the accusations, calling them "baseless, malicious, and defamatory." The asset management firm rejected any wrongdoing by its fund managers and reiterated the honesty of its investment procedures.
Investors are also keeping an eye on Kalyan Jewellers' stock in anticipation of the Union Budget 2025. The government may raise the mandatory customs duty on gold, according to reports. The action will raise costs for jewelry makers and have an effect on gold prices.
Is it wise to purchase shares of Kalyan Jewellers?
Sugandha Sachdeva, the founder of SS WealthStreet, advised shareholders of Kalyan Jewellers to be on the lookout for the Budget 2025. He stated that the Indian government is likely to raise the essential customs duty on gold in order to stop the surge in gold imports after last year's historic reduction in import duties.
"Gold prices are predicted to increase in the near future to offset the higher landed cost of gold if the government moves forward with the planned tariff hike. Established jewelry companies like Kalyan Jewellers would profit from this situation since they might profit from the price increase thanks to their buffer stock, Sachdeva said.
"Given its ability to absorb and profit from fluctuating gold prices, market participants may begin to factor this potential gold price benefit into the company's stock valuation," she noted.
Technically speaking, the share price of Kalyan Jewellers recovered from the oversold area on Monday.
For the jewelry stock to maintain above its critical ₹480 support and immediate ₹510 support, it is now very necessary. The ₹575 to ₹580 range is a significant barrier for the stock on the upper side. One can presume that Kalyan Jewellers' shares have bottomed out following a protracted selling run if the stock shows a new breakout over ₹580 on a closing basis, according to Mahesh M. Ojha, AVP — Research at Hensex Securities.
In a statement, Motilal Oswal AMC denied the accusations, calling them "baseless, malicious, and defamatory." The asset management firm rejected any wrongdoing by its fund managers and reiterated the honesty of its investment procedures.
Investors are also keeping an eye on Kalyan Jewellers' stock in anticipation of the Union Budget 2025. The government may raise the mandatory customs duty on gold, according to reports. The action will raise costs for jewelry makers and have an effect on gold prices.
Is it wise to purchase shares of Kalyan Jewellers?
Sugandha Sachdeva, the founder of SS WealthStreet, advised shareholders of Kalyan Jewellers to be on the lookout for the Budget 2025. He stated that the Indian government is likely to raise the essential customs duty on gold in order to stop the surge in gold imports after last year's historic reduction in import duties.
"Gold prices are predicted to increase in the near future to offset the higher landed cost of gold if the government moves forward with the planned tariff hike. Established jewelry companies like Kalyan Jewellers would profit from this situation since they might profit from the price increase thanks to their buffer stock, Sachdeva said.
"Given its ability to absorb and profit from fluctuating gold prices, market participants may begin to factor this potential gold price benefit into the company's stock valuation," she noted.
Technically speaking, the share price of Kalyan Jewellers recovered from the oversold area on Monday.
For the jewelry stock to maintain above its critical ₹480 support and immediate ₹510 support, it is now very necessary. The ₹575 to ₹580 range is a significant barrier for the stock on the upper side. One can presume that Kalyan Jewellers' shares have bottomed out following a protracted selling run if the stock shows a new breakout over ₹580 on a closing basis, according to Mahesh M. Ojha, AVP — Research at Hensex Securities.
Seetharam Trikkur Kalyanaraman, one of Kalyan Jewellers' promoters, has pledged equity shares of the business he owns in favor of other organizations for a variety of uses.
In order to obtain credit facilities from Catalyst Trusteeship, Bajaj Finance, Aditya Birla Finance, Tata Capital, STCI Finance, and HSBC Invest Direct Financial Services, TS Kalyanaraman pledged shares to these organizations, the business revealed in a regulatory filing on Monday. In Kalyan Jewellers, TS Kalyanaraman owned 22.29% as of the quarter that ended on December 31, 2024.
In order to get a loan facility, another promoter, Ramesh Trikkur Kalyanaraman, pledged 1.7 crore shares to Tata Capital, Aditya Birla Finance, Bajaj Finance, Catalyst Trusteeship, and Infina Finance. TK Ramesh owned 18.04% of the business as of the December quarter.
Trend of Kalyan Jewellers' Stock Price
Due to relentless selling, Kalyan Jewellers' share price has dropped 15% in a single week and more than 34% so far this month. The stock has increased 43% in a year and dropped more than 26% in three months.
The stock price of Kalyan Jewellers peaked on January 2, 2025, at ₹794.60 a share, and on February 1, 2024, it fell to ₹322.05, a 52-week low.
Shares of Kalyan Jewellers were down 4.38% at ₹507.90 each on the BSE at 10:40 AM.
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