Despite the brilliant quarterly results, the decline in jewelery stock.
When the country’s well-known jewelery retail company Kalyan Jewelers declared the results of the first quarter (Q1) of its financial year 2026, both profits and revenue showed a strong jump. Despite this, on Friday, August 8, there was a huge decline in the company’s shares in BSE.
On this day, the market opened, then Kalyan Jewelers’ stock fell rapidly to a low of 534.95 after opening at ₹ 615.65. Meanwhile, the stock saw a decline of up to 9.91%. In such a situation, the question arises that when the company declared such good results, then why did its stock decline so fast? Let’s know…
How to result in the company’s first quarter results?
In the first quarter, the company earned a net profit of ₹ 264 crore with an annual increase of 49%, while it was ₹ 178 crore in the same quarter a year ago. At the same time, revenue also increased by 31% to ₹ 7,268 crore, which was ₹ 5,528 crore last year. Apart from this, Ebitda also recorded a jump of 38% and it was ₹ 508 crore. The Ebitda margin also increased from 6.7% to 7%.
What is the reason for the decline in shares?
Investors hoped that there would be a faster bounce in profits and revenue. When there is a slight performance from expectations, profits begin. Due to this, there has been a decline in shares. Apart from this, the company’s online lifestyle jewelery brand Candere earned a revenue of ₹ 66 crore, but a loss of ₹ 10 crore, which may disappoint investors a bit.
Another big reason was constant fluctuations in gold prices. The company’s executive director Ramesh Kalyanraman also admitted that the instability in gold prices affected customer behavior.
Brokerage House opinion: chance or threat to buy?
Brokerage house JM Financial has advised BUY by giving a target of Rs 700 on this stock. The brokerage firm said that the company’s new strategy, which plans to launch a separate regional brand for each state, will help customers to target better. While the existing Kalyan Jewelers showrooms are focused on premium and ambitious customers, the new regional brand will be for customers with traditional and regional priorities. JM Financial believes that this strategy will increase the company’s total target market and give strong growth in a long time.