Kalyan Jewellers India Ltd shares returned to the negative territory on Tuesday after a single-day halt. The stock slipped 9.37 per cent to hit an intraday low of Rs 481.35. It eventually settled 8.27 per cent lower at Rs 487.25. At this price, it has declined 38.67 per cent from its recent record high level of Rs 794.60.
BSE data showed promoters Ramesh Trikkur Kalyanaraman and Seetharam Trikkur Kalyanaraman raised their pledged holdings by 1.65 per cent and 1.85 per cent, respectively, with select financial institutions. Pledging shares is a common practice by company promoters to secure loans.
Kalyan Jewellers' stock fell even as the company denied talks of IT raids and bribing a few fund managers. It started calendar year 2025 on a strong note as the counter scaled its all-time high value on January 2. But it has been mostly declining since then and was seen trading lower in 11 out of 15 sessions this year so far.
In an earnings audio call, the jewellery maker stated that no IT raids had been conducted at its premises and termed bribery allegations '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."
At least four analysts suggested avoiding the stock in the near term. "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 the current market price.
As per BSE data, promoters held a 62.85 per cent stake in the company.