Kalyan Jewellers is Motilal Oswal Midcap Fund’s largest holding, stock down 27% in 15 days

Shares of Kalyan Jewellers India Ltd have continued their steep decline, hitting the 10% lower circuit on January 15. The stock has dropped by over 30% in 2025, marking its ninth consecutive session of losses. This week’s sharp decline of ₹147.25 or 21.53% further exacerbates the stock’s downward trajectory.

Stock Performance:

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  • Current Price: ₹536.80
  • Day Range: ₹536.80 – ₹602.65
  • Market Cap: ₹554.47 billion
  • P/E Ratio: 88.44
  • Dividend Yield: 0.22%

The sell-off follows rumors of IT raids and alleged inventory overvaluation, which the management has categorically denied. During a management call, Kalyan Jewellers reaffirmed its commitment to transparency, terming the rumors “incorrect,” as per NDTV Profit.

Mutual Fund Exposure:

Motilal Oswal Mid-Cap Mutual Fund holds a high allocation in Kalyan Jewellers, exposing its portfolio to the ongoing stock turbulence. The fund has reportedly retained 9.64% of its holdings in the company.

Q3 FY2025 Performance:

Despite the sharp sell-off, the company demonstrated strong financial performance:

  • Revenue Growth: 39% YoY, fueled by festive and wedding season demand.
  • Same-Store Sales Growth: 24% YoY.
  • India Operations: Revenue surged 41% YoY.
  • Middle East Operations: Revenue grew 22%, contributing 11% to consolidated revenue.

Expansion Milestones:

  • New Showrooms: 24 new outlets in Q3 FY2025, with 30 more planned for the ongoing quarter.
  • Global Expansion: Launch of the first COCO showroom in the U.S.
  • Digital Growth: Candere, its digital-first platform, posted 89% YoY revenue growth, backed by the opening of 23 showrooms.

Future Outlook:

Kalyan Jewellers plans to open 170 new showrooms in FY2026:

  • 75 Kalyan showrooms in non-south India.
  • 15 Kalyan showrooms in south India and international markets.
  • 80 Candere showrooms in India.

As the stock faces turbulence, investors and analysts will closely watch Kalyan Jewellers’ strategic initiatives and market developments.