Kalyan Jewellers share price rallies 26% in 4 days. Why is battered jewellery stock shining again? | Stock Market News
Source: Live Mint
Kalyan Jewellers Ltd. shares surged by up to 15 per cent on Tuesday, February 4, marking gains in three of the last four trading sessions. The stock continues its upward momentum from its January 28 low of ₹420.
This marks the largest single-day gain for the stock in the past 19 months. The stock had surged 14 per cent on January 31, just a day before the Union Budget.
With this rally, Kalyan Jewellers’ shares have climbed 35 per cent from their January 28 lows over the last seven trading sessions, after having dropped as much as 45% from their recent peak of ₹795.
The stock has now reclaimed the ₹535 level, the same price at which the company’s promoter, TS Kalyanaraman, acquired a 2.36 per cent stake from Warburg Pincus in August last year for approximately ₹1,300 crore.
Kalyan Jewellers stock performance
The stock has regained its position above ₹535, the price at which the company’s promoter, TS Kalyanaraman, acquired a 2.36 per cent stake from Warburg Pincus in August last year for approximately ₹1,300 crore.
Kalyan Jewellers now has 5.6 lakh retail investors—those with an authorized share capital of up to ₹2 lakh—up from 3.64 lakh at the end of December 2023.
As of December, mutual funds held an 11.75 per cent stake in the company. Besides Motilal Oswal, Sundaram MF and Franklin MF each have a stake exceeding 1 per cent.
In the December quarter, Kalyan Jewellers recorded a 24 per cent year-on-year growth in Same-Store Sales and expanded its network with 24 new showrooms.
The company’s Middle East operations reported a Same-Store Sales Growth of nearly 16 per cent.
Kalyan Jewellers aims to enhance its Return on Capital Employed (RoCE) from current levels and plans to utilize free cash flow benefits to reward shareholders through dividends.
