Kalyan Jewellers’ share price has been on a rollercoaster ride, soaring 28.5% over the past six trading sessions. However, this surge follows a period of sharp declines in January, when the stock plunged nearly 28%, erasing over ₹21,000 crore in market capitalisation. What’s driving this rally, and should investors hold or book profits? Let’s break it down.
Kalyan Jewellers share price: A tale of highs and lows
Kalyan Jewellers’ share price saw extreme fluctuations in FY 2024-25, making it one of the most volatile stocks in the jewellery sector.
Recent performance snapshot:
| Date Range | Share Price Change | Closing Price (BSE) |
| January 2025 | -28% decline | ₹550 |
| Last 6 Sessions | +28.5% surge | ₹567.85 |
| 1-Year Performance | +62.06% increase | High: ₹571.60, Low: ₹552.40 |
After a steep decline in January, the stock rebounded, closing at ₹563.80, a 12.11% gain in a single trading session. This turnaround was fueled by strong Q3 FY25 financial results and favourable policy changes.
Also read: Kalyan Jewellers India Limited
What’s driving the surge in Kalyan Jewellers’ stock price?
Several factors have contributed to the stock’s recent rally:
1. Strong Q3 FY25 earnings boost investor confidence
Kalyan Jewellers reported impressive results for the December quarter:
- Net Profit: ₹218.82 crore (+21.23% YoY) vs ₹180.37 crore in Q3 FY24
- Revenue: ₹7,318.19 crore (+40% YoY) vs ₹5,243.20 crore in Q3 FY24
- Store Expansion: Opened 24 new showrooms in Q3 and plans to add 170 stores in FY26
These figures reflect robust demand and efficient expansion strategies, leading to renewed investor interest.
2. Government policy changes favouring jewellery stocks
The Budget 2025 proposed reducing import duties on precious metals:
- Gold jewellery: Duty reduced from 25% to 20%
- Titanium jewellery: Duty slashed from 25% to 5%
This has triggered value buying in jewellery stocks, benefiting Kalyan Jewellers as investors anticipate improved margins.
3. Positive technical indicators suggest further momentum
- Ichimoku cloud support: The stock rebounded strongly after taking support at the cloud, rallying 41% from recent lows.
- Bollinger Band breakout: Kalyan Jewellers’ share price moved above its 21-day SMA, with higher volumes indicating short-term bullish momentum.
- Buying opportunity: Analysts recommend a buy-on-dips strategy around ₹550-₹560, with targets of ₹600-₹650 and a stop loss at ₹520.
Is the rally sustainable, or should investors book profits?
While the rally is backed by strong fundamentals, experts caution against chasing the stock at higher levels.
- Resistance zone: The gap from January 13, 2025, remains unfilled, which could act as resistance in the ₹610-₹620 range.
- Profit booking advised: If the stock fails to close above ₹620, traders may witness selling pressure.
What risks should investors be aware of?
Despite the bullish factors, some risks remain:
1. Corporate governance concerns
- The company faced allegations of collusion with fund managers, which management has strongly denied.
- Promoters clarified that share pledging was to acquire Warburg Pincus’ stake, and liquidity levels are well managed.
2. Volatility in gold prices
- The recent rally coincided with rising gold prices, but any reversal could impact jewellery stocks.
- Kalyan Jewellers’ performance is closely tied to gold demand, which fluctuates based on economic conditions.
3. Broader market trends
- The stock surged alongside benchmark indices Sensex and Nifty, which rose 2% recently.
- If market sentiment weakens, Kalyan Jewellers’ share price could face correction.
The bottom line: What’s next for Kalyan Jewellers share price?
Kalyan Jewellers’ share price has seen a strong recovery, supported by stellar Q3 results, favourable government policies, and bullish technical indicators. However, caution is advised as the stock nears resistance levels.
