Kalyan Jewellers share price slumps 6% on profit booking post Q3 update; Should you buy or sell?

Kalyan Jewellers shares dropped by 6.2 per cent in early trading on Wednesday, January 8, reaching a low of ₹677.55 on the BSE. The stock declined after investors engaged in profit booking, following the company’s Q3 update that highlighted a year-on-year revenue growth of nearly 41 per cent.

Moreover, the company achieved robust same-store sales growth of about 24 per cent during the quarter under review. “Our India operations witnessed revenue growth of approximately 41% during Q3 FY2025 as compared to Q3 FY2024, led by very strong festive and wedding demand across both gold and studded categories. The quarter recorded healthy same-store-sales-growth of approximately 24%,” the company said in the exchange filing on January 7.

“We launched 24 Kalyan showrooms in India during the recently concluded quarter, with a strong pipeline of showrooms set to open over the course of the current quarter,” the company had said in its filing to the exchanges.

Kalyan Jewellers experienced a revenue increase of around 22 per cent in the Middle East compared to the same period last financial year. The region accounted for 11 per cent of the company’s consolidated revenue in the recently ended quarter.

Kalyan’s digital-first jewellery brand, Candere, achieved a remarkable year-on-year revenue growth of around 89% and introduced 23 new showrooms in Q3 FY 2025.

In the same quarter, Kalyan Jewellers inaugurated its first Company Owned Company Operated (COCO) showroom in the United States.

“For FY 2026, we have drawn up plans to launch 170 showrooms across Kalyan and Candere formats – 75 Kalyan showrooms (all FOCO) in non-south India, 15 Kalyan showrooms (all FOCO) across south India and international markets and 80 Candere showrooms in India. We have already started signing LOIs for the Franchisee Owned Company Operated (FOCO) showrooms planned for the next financial year in India and international markets,” the company added.

Should you buy or sell?

Brokerage firm Motilal Oswal has recommended ‘buy’ rating to Kalyan Jewellers stock, with a target price of ₹850.

“The stock is in strong uptrend and forming higher lows on monthly scale from last few months. On weekly scale the stock is on the verge of range breakout and formed a strong bullish candle. On daily scale the stock is holding near life high territory and trading above its short term moving averages. Momentum Indicator RSI also gave positive crossover which suggests momentum to pick up in coming sessions. The stock has been huge outperformer within midcap space and likely to scale new record highs. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 740 levels on closing basis for a new life time high target towards 850 zones,” the brokerage firm said.

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