Kalyan Jewellers Stock Drops 6% Despite Strong Q3 Performance: Is It Time to Buy or Sell?

Shares of Kalyan Jewellers experienced a significant decline of 6.2% in early trading on January 8, 2025, reaching a low of ₹677.55 on the BSE. The drop followed investor profit booking after the company released its Q3 FY2025 update, which highlighted strong growth in revenue and same-store sales.
Strong Revenue Growth
In its latest update, Kalyan Jewellers reported a nearly 41% year-on-year revenue growth for Q3 FY2025, driven by robust demand during the festive and wedding seasons across both gold and studded jewellery categories. The company also recorded an impressive 24% same-store sales growth.
“Our India operations witnessed revenue growth of approximately 41% during Q3 FY2025 compared to Q3 FY2024, led by very strong festive and wedding demand across both gold and studded categories,” said the company in its exchange filing on January 7, 2025.
The company also expanded its footprint, launching 24 new showrooms in India during the quarter and plans to open more in the current quarter.
Strong International Growth
Internationally, Kalyan Jewellers saw a 22% increase in revenue from the Middle East compared to the same period last year. This region contributed to about 11% of the company’s consolidated revenue for Q3.
Additionally, Kalyan’s digital-first jewellery brand, Candere, reported a remarkable 89% year-on-year revenue growth, and introduced 23 new showrooms in Q3 FY2025. The company also inaugurated its first Company Owned Company Operated (COCO) showroom in the United States during the same quarter.
Future Expansion Plans
Looking ahead, Kalyan Jewellers has aggressive expansion plans for FY 2026, with plans to launch 170 new showrooms across its Kalyan and Candere brands. This includes 75 Kalyan showrooms outside South India, 15 Kalyan showrooms across South India and international markets, and 80 Candere showrooms in India.
Brokerage Recommendation
Despite the recent stock dip, Motilal Oswal, a prominent brokerage firm, has maintained a ‘Buy’ rating for Kalyan Jewellers with a target price of ₹850. The firm cited that the stock is in a strong uptrend and showing bullish signals across multiple timeframes.
“The stock has been a huge outperformer within the midcap space and is likely to scale new record highs,” Motilal Oswal stated. They recommend buying the stock with a stop loss below ₹740 on a closing basis, with a target towards the ₹850 range.
Should You Buy or Sell?
Kalyan Jewellers has demonstrated impressive growth, with strong performances both domestically and internationally. However, its recent stock dip could present an opportunity for investors to consider entering the stock at a lower price. Those with a long-term perspective may find value in the company’s strong expansion strategy and robust financial performance. As always, investors should evaluate their risk tolerance and consider professional advice before making any investment decisions.