Shares of Kalyan Jewellers India Ltd continued to dwindle despite the company denying talks of IT raids and bribing a few fund managers. The counter started calendar year 2025 on a strong note as the stock scaled its all-time high value on January 2. But it has been mostly declining since then and was seen trading lower in 10 out of 13 sessions this year so far.
On Friday, the stock tanked 6.63 per cent to hit a day low of Rs 503.25. At this price, it has corrected 36.66 per cent from its record high of Rs 794.60.
The jewellery maker, in a recent earnings audio call released on January 14, stated that no IT raids had been conducted at its premises. And, it termed bribery allegations as 'absurd'. Ramesh Kalyanaraman, executive director at Kalyan Jewellers, said, "Very absurd allegation. We have always conducted our businesses and interactions with all stakeholders with a very high level of integrity and transparency."
"There have been no raids at any of our premises. It was just a rumour. Inventory level, as mentioned in our financial statement, goes through multiple levels of audit. We've repaid around Rs 450 crore debt over the last 18 months. This is in addition to around Rs 170 crore dividend payout," Kalyanaraman added. The company is scheduled to declare third quarter (Q3 FY25) results on January 30.
In response to a query about buying an aircraft, Kalyanaraman said, "At Kalyan, we do not have any plans to buy any aircraft. There are no aircraft in the company's books except for a helicopter and there are no plans to sell it."
Analyst views
At least four analysts suggested avoiding the stock. "Investors can avoid Kalyan Jewellers at current levels," market expert Raghvendra Singh told Business Today. Investors should exit the counter, said Religare Broking's Ravi Singh. "We recommend refraining from purchasing it and advising those currently holding to consider booking profits," said StoxBox's Kushal Gandhi. Osho Krishan of Angel Broking also recommended avoiding Kalyan Jewellers at current market price.
Kalyan Jewellers' stock traded lower than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 21.75. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE data, promoters held a 62.85 per cent stake in the company.