It is often difficult to say when the mood of a stock will change in the stock market. The shares of Kalyan Jewellers, which have been filling the pockets of investors for the last one month, suddenly came under pressure today. On July 27, this share was trading at the level of Rs 567, falling by about 1.1 percent in the day’s trading. There is no small reason behind this decline, but there is a very important news. There is talk in the market that a big domestic mutual fund is preparing to sell its major stake in this company. As soon as this news came, uneasiness among investors increased. The company is also going to release its quarterly results on August 4, but before that the news of this possible block deal has raised the temperature of the market.
Preparation to sell shares at discount
According to a recent report by NDTV Profit, a leading mutual fund may sell around 5 crore shares of Kalyan Jewelers through a block deal. The most important thing is that these shares are expected to be sold at a huge discount of 8 to 10 percent from the current market price. Although no fund has been named directly in this report, but if we look at the official figures, by June 30, 2026, Motilal Oswal Midcap Fund holds 9.17 percent stake in the company (about 9.5 crore shares). In fact, in the last one month alone this stock has jumped by more than 50 percent. After such a fast pace, profit booking by the fund house is being considered a normal process. It is reported that two bankers have also been appointed to complete this deal.
Giants’ confidence remains intact amid decline
Even though the stock is looking sluggish today, market experts are still very positive about it in the long term. Earlier this month, leading global brokerage firm Citigroup had maintained its ‘buy’ rating on this stock. He has given a strong target price of Rs 750 for this. The brokerage believes that the company’s consolidated revenue has increased by 38 percent on an annual basis in the June quarter. Even though it may have been slightly lower than their estimates, the company’s long-term growth story looks completely strong. According to Citigroup, the company’s franchise-based expansion strategy is continuously improving its Return on Capital Employed (RoCE).
Tremendous boom seen in digital business
The business of Kalyan Jewelers is not limited to just traditional showrooms. The company’s digital-first jewelery brand ‘Candere’ has performed amazingly on the sales front. In the June quarter, Candere’s revenue has seen a bumper jump of 112 percent on an annual basis. Apart from this, the company’s revenue has increased by 28 percent on the basis of Same-Store Sales Growth (SSSG) in India. Talking about the international market, the business there has also increased by about 35 percent, in which West Asia has contributed the most (about 30 percent). The company recently opened 12 new Kalyan showrooms and 5 Kandere stores, taking its total showroom count to 524. The company management has full hope that the sales will be even better in the coming festive and wedding season.
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