Jewellery stock engaged in designing, manufacturing, and selling a variety of gold, studded, and other jewelry products for various occasions, plunged 3.60 percent after the promoter pledged an additional share of 2.5 crores (2.47 percent), increasing the total pledged stake to 10.73 percent.
Stock Price Movement:
In Thursday’s trading session, Kalyan Jewellers India Ltd’s (NSE:KALN) share reached an intraday low of Rs. 547.15 per equity share, plunging 3.60 percent from its previous day’s close price of Rs. 567.60. The stock opened at Rs. 563.50 and is currently trading at Rs. 550.35. The market capitalization now stands at approximately Rs. 56,765.05 crore.
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What is the news?
The promoters of Kalyan Jewellers India Limited, Trikkur Kalyanaraman Seetharam and Trikkur Kalyanaraman Ramesh, have increased the number of pledged shares to secure the issuance of non-convertible debentures (NCDs).
According to an exchange filing, they created an additional pledge on 2.5 crore shares, bringing the total pledged shares from 8.5 crores to 11 crore, which now represents 10.73 percent of the company’s total stake, up from 8.26 percent. This pledge was made on February 3, 2025.
The promoters had previously pledged shares in January to secure loan facilities from various entities, including Catalyst Trusteeship, Bajaj Finance (NSE:BJFN), Aditya Birla (NSE:ADTB) Finance, Tata Capital, STCI Finance, HSBC Invest Direct, and Infina Finance. The promoters of Kalyan Jewellers have a total stake that includes 22.29 percent held by T.S. Kalyanaraman and 18.04 percent held by T.K. Ramesh as of the December quarter.
Future Outlook:
The management is highly confident in achieving substantial revenue growth, fueled by a surge in wedding demand and proactive expansion strategies. The company is focusing on Candere, aiming for Rs. 1,000 crores in revenue over the next 2-3 years.
Additionally, the company plans to make Candere’s stores EBITDA positive in the upcoming financial year, strengthening their overall growth strategy.
Recent quarter results:
Kalyan Jewellers India Limited’s revenue has increased from Rs. 5,223 crore in Q2 FY24 to Rs. 7,287 crore in Q2 FY25, which has grown by 39.52 percent. The net profit has also grown by 21.67 percent from Rs. 180 crore in Q2 FY24 to Rs. 219 crore in Q2 FY25.
Written by – Nikhil Naik
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