Kalyan Jewellers Share Price: A Closer Look at Its 28.5% Surge and Market Trends

The share price of Kalyan Jewellers has seen remarkable activity in recent sessions, surging by an impressive 28.5% over six trading days. Despite this bullish run, the stock experienced minor corrections today, sparking curiosity about what lies ahead for the jewellery sector giant. This article delves deep into the company's market performance, the factors driving this surge, and what investors should watch out for.

Market Performance of Kalyan Jewellers Share Price

How Did Kalyan Jewellers Perform in the Last Six Sessions?

Over the past week, Kalyan Jewellers' share price has experienced a meteoric rise, increasing by 28.5%. Today, however, the stock opened slightly lower at ₹567.85 on the BSE, hit an intraday high of ₹571.60, and reached a low of ₹552.40. This minor correction comes after a significant rally, indicating a period of consolidation.

The stock has gained a remarkable 62.06% in the last year, showcasing its long-term upward trajectory.

Recent Rally in Kalyan Jewellers' Share Price

What Led to the Recent Surge in Share Price?

Several factors have contributed to the recent spike in Kalyan Jewellers' share price:

Budget 2025 Announcements

The Government of India proposed reducing the duty on precious metals, including gold jewellery (25% to 20%) and titanium jewellery (25% to 5%). This policy sparked renewed interest in jewellery stocks.

December Quarter Results

The company reported stellar performance in Q3 of FY2024-25, with:

• Net Profit Growth: A 21.23% increase to ₹218.65 crore compared to ₹180.37 crore in the same quarter last year.
• Revenue Surge: Total revenue jumped by 40%, reaching ₹7,318.19 crore from ₹5,243.20 crore in the corresponding period of the previous year.

Seasonal Demand:

The ongoing wedding season has bolstered demand for gold and jewellery, further supporting the company's robust financial performance.

Company Insights: How Are Kalyan Jewellers Positioned?

What Does the Management Say About the Future?

Kalyan Jewellers' Executive Director, Ramesh Kalyanaraman, expressed optimism about the company's trajectory, stating:

"We are extremely excited with the way the current year has progressed. The current quarter has started off well despite the volatility in gold prices. We are upbeat about the ongoing wedding season and expect to end the financial year on a strong note." This positive outlook is strengthened by the company's strong financial performance and strategic efforts to expand its market presence.

Key Takeaways from Kalyan Jewellers' Performance

• Revenue and Profit Growth: The company's significant revenue growth and net profit increase highlight its strong fundamentals.
• Policy Tailwinds: Favorable government policies have significantly boosted the jewellery sector.

Summary: What Lies Ahead for Kalyan Jewellers Share Price?

While Kalyan Jewellers' share price has shown strong momentum, the near-term outlook remains cautious. Investors should also watch broader market trends and gold price movements, critical to the jewellery industry's performance.