Why Kalyan Jewellers Share Price is Rising: A Sparkling Comeback in 2025
This marks a 26% rally over the past three weeks, fueled by a mix of soaring gold prices, robust company performance, and renewed investor confidence. So, what’s behind this glittering turnaround?
Gold Prices Hit Record Highs
The most immediate spark igniting Kalyan Jewellers’ stock rally is the unprecedented rise in gold prices. As of today, gold is hovering near ₹91,000 per 10 grams in India, a fresh all-time high driven by global economic uncertainty, festive demand, and a weaker rupee. For a company like Kalyan Jewellers, where gold jewelry forms the backbone of its revenue, this surge translates into higher margins and stronger sales potential.
Weddings and festivals—cornerstones of India’s gold-buying culture—ensure demand remains resilient even as prices climb, and Kalyan is perfectly positioned to cash in.
“Gold’s cultural significance in India means demand doesn’t waver much with price hikes,” said Rhea Kapoor, a commodities analyst based in Mumbai. “For organized players like Kalyan Jewellers, this is a golden opportunity—pun intended—to leverage their scale and brand trust.”
A Strong Q3 Performance
Adding fuel to the fire, Kalyan Jewellers recently hinted at a stellar third-quarter performance for FY25 (October-December 2024). In a pre-earnings update, the company projected a 39% year-on-year revenue growth, driven by a 23% same-store sales growth (SSSG) in India and a 9% SSSG in the Middle East.
The addition of 15 new showrooms in India and two in the Middle East during the quarter further bolstered its footprint. Posts on X have buzzed with excitement over these numbers, with traders noting the stock’s high trading volume—over 1 million shares today, 2.34 times the weekly average—as a sign of strong market interest.
The company’s focus on non-South markets, now contributing nearly 49% of its India revenue (up from 44% a year ago), is paying off. Its aggressive expansion—170 new showrooms planned for FY26, including 90 Kalyan outlets and 80 for its digital-first brand Candere—has investors betting on long-term growth. “This isn’t just a flash in the pan,” said Vikram Desai, a retail sector analyst. “Kalyan’s execution is solid, and they’re tapping into both metro and non-metro demand with precision.”
Shift to Organized Retail
Another tailwind propelling the stock is the broader shift from unorganized jewelers to trusted retail chains. As consumers prioritize transparency, quality, and branded experiences, Kalyan Jewellers has capitalized on this trend with its pan-India presence (124 showrooms) and international reach (30 showrooms across five Middle Eastern countries). Its digital platform, Candere, is also gaining traction, with plans to scale up online sales—a move that aligns with India’s growing e-commerce boom.
“People want reliability, especially with gold prices this high,” noted Priya Menon, a market commentator. “Kalyan’s brand equity and its ability to cater to local tastes give it an edge over smaller players.”
Investor Sentiment Turns Bullish
The market’s mood has flipped from bearish to bullish in a matter of weeks. After a steep correction earlier this year—triggered by promoter share pledges and rumors of governance issues (which the company firmly denied)—Kalyan’s stock found support in the ₹450-485 zone, a level technical analysts on X flagged as a demand zone with oversold RSI readings. Today’s 13% jump, accompanied by heavy volumes, suggests institutional buying and renewed faith in the company’s fundamentals.
HSBC Securities’ recent upgrade, raising its target price to ₹810 from ₹610 while maintaining a “Buy” rating, has further stoked optimism. The brokerage highlighted Kalyan’s “capital-light expansion” and its emergence as a national brand akin to Titan, trading at a 10% discount to its rival despite similar growth potential. “Kalyan’s only midway through its value creation journey,” HSBC noted, a sentiment echoed across trading forums.
What’s Next?
While the rally is impressive, questions linger. Can Kalyan sustain this momentum? Rising gold prices could eventually dent demand if inflation squeezes disposable incomes, and competition from Titan and regional players remains fierce. Yet, with mutual funds holding a hefty 11.75% stake (as of December 2024) and promoters boosting their ownership to 62.85%, confidence in the company’s trajectory is palpable.
For now, Kalyan Jewellers is shining bright. As it gears up to announce its full Q3 results on January 30, 2025, investors are watching closely. If the numbers dazzle as expected, this could be just the beginning of a golden run. Whether you’re an investor or just a bystander, one thing’s clear: Kalyan Jewellers is proving that even after a rough patch, a well-cut gem can still sparkle.
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