Kalyan Jewellers faces intense selling pressure on Dalal Street despite a robust business update for the December quarter. Analysts tracking the jewellery retailer cite multiple factors for the sharp drop in investor sentiment as the stock has now plummeted for 10 straight sessions.
Kalyan Jewellers' stock crashed a whopping 14% on Wednesday (January 21) to a 19-month low of Rs 389, extending a nine-session losing streak with a 25% drop, and 40% off its 52-week high of Rs 617.70 amid heavy selling pressure. Shares hit a low of Rs 370 on Thursday (January 22) before settling 4.56% lower at 378.45. Over the past 10 sessions, it has crashed 28%, breaking below key 20/50/100/200 EMAs with bearish options data and high put-call ratios signalling further downside bets.
Vinit Bolinjkar, Head of Research at Ventura, said that heavy institutional exits, like Motilal Oswal's stake cut in Q3 FY26, promoter pledge overhang, and weak sentiment are driving the rout, and have overshadowed robust Q3 FY26 results: 42% YoY revenue surge to Rs 7,318 crore and 27% same-store sales growth in India.
“Fundamentals stay strong with 170 store expansions planned for FY26 and rising retail stakes, but near-term volatility lingers until promoter clarity emerges and selling eases; year-to-date 2026 losses hit 17.5% versus peers,” added Bolinjkar.
Adding to it, Sunny Agrawal, head of fundamental research at SBI Securities, said the recent selloff in Kalyan Jewellers could be due to mutual fund reshuffling and oversupply. He added that the stock is trading at a reasonable valuation.
“Kalyan Jewellers' stock is trading at a reasonable valuation of FY27 PE multiple of 28x and with likely earnings growth of 20%+. Risk to earnings growth can be postponement of demand due to the steep rise in gold prices, which jewellers are mitigating by offering lower carat products,” added Agrawal.
While a steep rise in gold prices, coupled with US tariffs on the gems and jewellery sector, has dampened investors’ sentiments towards the sector, the fall in Kalyan Jewellers' share price has been astonishing but not new. Kalyan Jewellers had faced a similar rout in January last year when its share crashed more than 40% in three weeks amid unverified social media rumours.
The present fall also contrasts with the broader market sentiments, where the benchmark BSE Sensex has declined 3.38% so far in 2026 while Kalyan has fallen nearly 22%.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said that Kalyan Jewellers’ recent stock slide appears to be driven more by fear and positioning than by business performance.
“Record-high gold prices of around Rs 1.58 lakh per 10 grams have sparked worries that mass and mid-market customers may postpone purchases, while the rise in promoter share pledging from about 19% to nearly 25% has added to concerns about financial stress. At the same time, the stock’s break below key technical support levels has triggered panic selling, and social media rumours around corporate governance, though denied by the company, have further hurt sentiment,” added Gour. He stated that some institutional investors trimming their stakes has added to the pressure.