Kalyan Jewellers Stock Plunge: 37% Crash, Triple Top Warning, and Motilal Oswal’s Risk Control Strategy

Kalyan Jewellers‘ stock has recently faced a significant downturn, with its share price witnessing a sharp decline of 37% in January 2025 alone. Investors are becoming concerned as the stock has entered a negative trend following its record-breaking high of Rs 794.60 on January 2, 2025. The causes of the decline, market responses, and predictions for the company’s future are all covered in detail in this article.
Stock Performance and Recent Trends
During a recent trading session, the share price of Kalyan Jewellers fell 9.37% to an intraday low of Rs 481.35, and then settled at Rs 487.25, representing an 8.27% decline. Since the stock’s peak earlier this month, it has already dropped 38.67%. The stock finished lower 11 times out of 15 trading sessions in January, highlighting its ongoing downward trend.
Experts in the market blame this drop on poor chart patterns, profit booking, and general market pessimism. Sell-offs have been exacerbated by the stock’s triple top chart pattern, which is a reliable sign of a bearish trend. Analysts warn against making any quick purchases and have set price estimates for the stock at Rs 464 and Rs 450.
Pledged Shares and Financial Rumors
With a few financial institutions, promoters Ramesh Trikkur Kalyanaraman and Seetharam Trikkur Kalyanaraman upped their pledged interests by 1.65% and 1.85%, respectively. Although pledging shares to get loans is a regular practice, it frequently creates questions over the liquidity condition of a corporation.
Rumours of IT raids and accusations of bribes against the corporation spread on social media, further escalating the unrest. The business has vehemently refuted these claims, though. Executive Director Ramesh Kalyanaraman called the charges “absurd” and underlined the company’s dedication to honesty and openness. He confirmed during an earnings conference, “No raids have occurred at any of our locations.”
Management’s Reassurances and Financial Updates
Kalyan Jewellers emphasised the strength of its financial situation during the results call. The business has paid out Rs 170 crore in dividends and paid down Rs 450 crore in debt during the last 18 months. The management also denied rumours that it was planning to buy an aeroplane, stating that it only has a helicopter listed as one of its investments and has no intentions to buy any more.
With its third-quarter results set on January 30, 2025, Kalyan Jewellers is optimistic about its long-term development despite the current stock performance.
Motilal Oswal AMC’s Role and Clarifications
Motilal Oswal AMC, a significant investor, provided answers on allegations of misbehaviour at the same time as the sell-off. The asset management firm strongly denied allegations of unethical behaviour by its fund managers. Motilal Oswal’s top management reiterated their strong risk control procedures and diverse investing approach in an address to more than 500 distributors.
The MD and CEO, Prateek Agarwal, said, “Our funds are not reliant on any one stock. We have seen notable gains in all of our portfolios, even after the autumn. Despite the volatility, the company’s Nifty 200, Nifty 500 Momentum Fund, Business Cycle Fund, and Mid Cap Fund have all performed steadily.
Analysts’ Recommendations
Market watchers are still wary of Kalyan Jewellers’ immediate future. Market analyst Raghvendra Singh advised staying away from the stock at its present price. In a similar vein, Kushal Gandhi of StoxBox and Ravi Singh of Religare Broking suggested selling holdings in order to reduce risks.
Angel Broking’s Osho Krishan cautioned against purchasing amid declines, stating that in order to restore bullish momentum, the stock must clearly break beyond the Rs 595 barrier.
Conclusion
Recent market rumours, poor technical patterns, and profit booking have all contributed to Kalyan Jewellers’ stock decline. Investor opinion is nevertheless wary despite the company’s management’s proactive efforts to soothe worries and confirm its financial stability. Analysts suggest remaining passive for the time being until definite indications of recovery appear.