NEW DELHI: Despite reporting a healthy outlook and strong business update for the recently concluded December quarter (Q3FY25), shares of Kalyan Jewellers, one of India’s largest Jewellery firms, have come under a severe bearish grip.
The scrip has fallen about 30% in two weeks and on Wednesday it plummeted more than 10% intraday before settling 8% lower at R550 apiece.
The sudden fall in share price has left many surprised. While most analysts believe that investors are booking profit after two years of strong run, a senior analyst said that there can be a possibility of shorting the shares by one or more than one entity based on the information that is not public.
To calm investors’ nerves, Kalyan on Tuesday held an investors call. The Kerala-based firm reiterated that its business operations are sound and there is no FIR (First Information Report) filed against any of its promoters. The company attributed the decline in share price to market factors and emphasised that it has no direct influence on these fluctuations.
“With the stock having a stellar run in the past two years, the profit booking is evident from the shareholding pattern and also the monthly fact sheets of mutual fund houses which have been booking profit in the counter,” said Akriti Mehrotra, Research Analyst, StoxBox.