Kalyan Jewellers stock falls 11.2% after results left investors unimpressed
Kalyan Jewellers's stock has fallen 11.2% over the last four trading sessions, falling to an intraday low of ₹562.70 on Wednesday, August 5, after its latest quarterly results left investors unimpressed.
Even though the company's net profit jumped 32% year over year and revenue soared 46%, profits actually slipped compared to last quarter, with margins taking a hit.
Kalyan Jewellers studded sales slump
The main culprit: fewer sales of high-margin studded jewelry both in India and the Middle East.
Still, Kalyan opened 17 new stores this quarter, bringing its total to 483 in India.
Domestic brokerage Motilal Oswal are staying optimistic: they've kept a "Buy" rating and set a target price of ₹700, citing the successful scale-up of its new franchise businesses, continued success in non-Southern markets, and asset-light expansion supporting cash flow and profitability.