Kalyan Jewellers India Ltd shares shed 0.45 per cent to settle at Rs 539.65 on Friday. At this price, the stock has corrected 32.08 per cent from its record-high level of Rs 794.60, seen on January 2, 2025. Bourses BSE and NSE have put the securities of Kalyan Jewellers under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
The jewellery maker has issued a clarification over the stock price movement and 'additional' share pledge by promoter TK Seetharam. "In our view, the pledge of shares has no bearing on the price movement. Reason being (there) is no incremental pledge by the promoters, as explained below. We also wish to submit that since movement in the share price is purely market-driven and maybe a combination of various factors including market conditions, the Company does not have any control over such factors, nor are we connected with such movement," it stated.
On promoter share pledging, the company said, "Pledge of 60,97,561 shares in favour of HSBC Investdirect Financial Services (India) Ltd has been released, and the same number of shares, i.e. 60,97,561 shares, have been pledged by TK Seetharam, promoter of the company, on February 3, 2025, in favour of Catalyst Trusteeship Ltd."
Recently, the company denied talks of IT raids, FIR and bribing a few fund managers. In an earnings audio call, it stated that no IT raids had been conducted at its premises and termed bribery allegations 'absurd'. Neither there was any FIR registered against the company or the promoter.
Analysts largely turned positive on the counter after a 'modest' rebound in the share price in the last two weeks.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "The stock is in a consolidation phase after touching a record high level. Investors with a long-term view can hold on to it. One can add on any dip from this level from medium to longer term."
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "The has seen a modest resurgence post a steep correction from its peak of Rs 795 to Rs 420 in the last two trading weeks. Currently, it seems poised to continue its momentum on the higher end towards Rs 600-610, coinciding with the bearish gap. On the lower end, Rs 500 is likely to cushion any shortcomings in the near period."
Sebi-registered research analyst AR Ramachandran said, "Kalyan Jewellers has strong resistance at Rs 594. A daily close below support of Rs 533 could lead to a downward target of Rs 446 in the near term."
As per BSE data, promoters held a 62.85 per cent stake in the company.