Kalyan Jewellers India Ltd. shares extended losses on Tuesday, falling as much as 2.63% to an intraday low of Rs 555.
At 10:25 am, the stock was trading 1.63% lower at Rs 560.70 apiece, while the BSE Sensex was down 0.28% at 77,489.
The decline comes after a volatile run in recent sessions. The stock had rallied for six straight trading days before ending its winning streak on Thursday. It bounced back on Friday but slipped into the red again on Monday, with Tuesday's decline extending the weakness.
Mayank Jain, market analyst, Share.Market by PhonePe said, "Kalyan Jewellers experienced a minor stock price dip for the second consecutive session, driven primarily by profit-booking after a sharp multi-day rally. The stock had surged nearly 50% between its July 6 close and July 20 closed following a strong quarterly business update, prompting short-term traders to lock in gains near resistance levels. Modest downward pressure across benchmark indices like the Nifty and Sensex also contributed to cautious sentiment in consumer discretionary and mid-cap stocks."
He added, "However, the recent pullback remains relatively mild. On July 20, the stock dipped by just 0.77%, representing a normal cooling-off period after a powerful upside move. On July 21, the shares opened at ₹568 and slipped to an intraday low of ₹555 by mid-morning. Notably, the recent rally allowed the stock to break above a key resistance zone of ₹510 to ₹530—a level that previously capped upside moves on multiple occasions and may now serve as strong technical support."
Citi Maintains 'Buy'
Despite the recent pullback, Citi reiterated its 'Buy' rating on Kalyan Jewellers with a target price of Rs 750 per share following the company's first-quarter business update.
The brokerage said its valuation is based on 40 times FY28 estimated consolidated earnings per share and continues to trade at a discount to sector leader Titan.
Strong Business Momentum
Kalyan Jewellers reported around 38% year-on-year (YoY) consolidated revenue growth in the June quarter, with its India business posting a similar increase.
The company said demand remained resilient despite the Adhik Maas period, which typically weighs on wedding-related jewellery purchases in several regions.
Same-store sales growth stood at around 28%, while the company's 'Shine With India' gold exchange programme continued to gain traction. Recycled gold contributed more than 46% of total revenue during the quarter and exceeded 55% in June.
The international business recorded nearly 35% YoY growth, with the Middle East operations growing around 30% despite softer footfalls in April amid geopolitical uncertainties. Overseas markets contributed nearly 14% to consolidated revenue during the quarter.
Its digital-first jewellery brand, Candere, posted 112% YoY revenue growth. During the quarter, the company opened 12 Kalyan showrooms and five Candere stores, taking its global showroom count to 524 as of June 30, 2026.
The company remains optimistic about its growth outlook, supported by an aggressive store expansion strategy, new product launches, and expected demand from the upcoming festive and wedding seasons.
Looking ahead, Jain said the key catalyst to watch is the detailed Q1FY27 financial results announcement scheduled for August 4. "This upcoming quarterly earnings report is expected to provide greater clarity on operating margins and bottom-line growth, which could determine the direction and momentum of the stock's next major price move," he said.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.