Shares of Kalyan Jewellers Ltd rallied as much as 15% on Tuesday, February 4, and have now gained in three of the last four trading sessions. The stock continues its upward trend from its January 28 low of ₹420.
This is the biggest single-day gain for the stock in the last 19 months. The stock had surged 14% on January 31, a day ahead of the Union Budget.
With this move, Kalyan Jewellers shares are up 35% from its January 28 low in the last seven trading sessions, having fallen 45% from its recent peak of ₹795.
The stock has come back above the ₹535 level, which is the level at which the company’s promoter TS Kalyanaraman acquired a 2.36% stake from Warburg Pincus in August last year for about ₹1,300 crore.
Kalyan Jewellers currently has 5.6 lakh retail investors, or those with an authorised share capital of up to ₹2 lakh, up from the figure of 3.64 lakh at the end of December 2023.
Mutual fund holdings in Kalyan Jewellers stood at 11.75% in December. Apart from Motilal Oswal, Sundaram MF and Franklin MF hold over 1% stake in the company.
For the December quarter, Kalyan Jewellers reported same-store sales growth of 24% over last year. The company added 24 new showrooms during the quarter.
The company’s Middle East business reported same-store sales growth of about 16%.
The company intends to increase its Return on Capital Employed (RoCE) from the current levels and also intends to use the benefits of free cash flow to reward its shareholders through dividends. Shares of Kalyan Jewellers closed 12.3% higher at ₹565.9.
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