Kalyan Jewellers shares slipped 10% from recent record high levels. Analyst views

Shares of Kalyan Jewellers continued to fall for the fourth straight session in Wednesday's trade. The stock tumbled 8.16 per cent to hit a day low of Rs 663.60. It regained some lost ground and was last seen 1.46 per cent up at Rs 712. At this price, it has declined 10.40 per cent as against an all-time high value of Rs 794.60, seen last week on January 2.

Kalyan Jewellers, in its third-quarter (Q3) business update, said it concluded the recent quarter with consolidated revenue growth of approximately 39 per cent, year-on-year (YoY). The jewellery retailer's India business saw a 41 per cent revenue jump, led by strong festive and wedding season demand across gold and studded categories, with same-store sales growing by 24 per cent.

A few analysts largely suggested booking some profits at current levels. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "Kalyan Jewellers has been one of the outperforming stocks in the past two years. The stock has entered into a consolidation phase as it is fully priced in. Investors who entered at the bottom can book some profits at current levels." Those with a long-term view can continue to hold the stock, given the prospects of the company, the market expert added.

Technically, immediate support on the counter could be seen at Rs 654. Resistance may be found above the Rs 700 range.

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The stock has been declining after hitting its record high level. Investors can consider exiting at current levels. Immediate resistance will be at Rs 700."

Sebi-registered research analyst AR Ramachandran said, "Kalyan Jewellers is bearish on daily charts with strong resistance at Rs 725. A daily close below support of 654 could lead to a downward target of Rs 600 in the near term."

As of September 2024, promoters held a 62.90 per cent stake in the jewellery retailer. The company's stock has a price-to-equity (P/E) ratio of 124.87 against a price-to-book (P/B) value of 16.80. Earnings per share (EPS) stood at 5.67 with a return on equity (RoE) of 13.46.