Kalyan Jewellers shares surge 15% to continue recovery from January 28 lows

Shares of Kalyan Jewellers Ltd. gained as much as 15% on Tuesday, February 4 and have now gained in three out of the last four trading sessions. The stock continues to extend its advance from its January 28 low of ₹420.

This is the biggest single day gain for the stock in the last 19 months. The stock had gained 14% a day ahead of the Union Budget on January 31.

With this move, shares of Kalyan Jewellers are up 35% from their January 28 lows in the last seven trading sessions, having corrected as much as 45% from their recent peak of ₹795.

The stock is back above the level of ₹535, which is the level at which the company’s promoter TS Kalyanaraman had acquired a 2.36% stake from Warburg Pincus in August last year for nearly ₹1,300 crore.
Kalyan Jewellers currently has 5.6 lakh retail investors, or those with authorised share capital of up to ₹2 lakh, from the 3.64 lakh figure at the end of December 2023.Mutual Funds holding stake in Kalyan Jewellers is at 11.75% in December. Apart from Motilal Oswal, Sundaram MF and Franklin MF have stake in excess of 1% in the company.

For the December quarter, Kalyan Jewellers reported a Same-Store Sales Growth of 24% from last year. The company added 24 new showrooms during the quarter.

The Middle East business for the company reported Same Store Sales Growth of close to 16%.

The company intends to accelerate its Return on Capital Employed (RoCE) from current levels and also intends to use the benefits of free cash flow to reward its shareholders via dividends.

Shares of Kalyan Jewellers ended 12.3% at ₹565.9.