Kalyan Jewellers

 

Kalyan Jewellers Share News: Why the stock tanked even though the numbers looked killer

Alright, let’s get into it. Kalyan Jewellers, one of the big daddies of the jewellery biz in India (and they've got a pretty decent game in the Middle East too), just dropped some fire results for Q1 FY26. I mean, the kind of numbers that should've had investors popping champagne. But nope. The very next day, the stock nosedived over 9%. People were scratching their heads—what the heck happened? Let’s break it down, less like a lecture and more like gossip at a chai stall.

**Q1 Results: Seriously, they crushed it**

So, first things first, Kalyan pulled off a crazy good quarter. Check out these stats:

- **Profit up 49%:** Net profit hit ₹264 crore, up from ₹178 crore last year.

- **Revenue up 31%:** ₹7,268 crore in the bank, thanks very much. Last year? ₹5,528 crore.

- **Better margins:** EBITDA jumped 38% to ₹508 crore, and margins nudged up from 6.7% to 7%. Not earth-shattering, but hey, up is up.

- **Middle East flex:** That part of the business grew revenue by 32%, clocking ₹1,070 crore. Not bad for a “side hustle.”

On paper, these are the kind of numbers that get investors grinning like Cheshire cats. So why all the panic selling?

**The not-so-sparkly reasons behind the fall**

Look, people always say, “Stocks should follow the company’s performance.” But anyone who’s spent five minutes in the market knows it’s never that simple. With Kalyan, a few things spooked the herd:

1. **Debt reduction? Nah, not for now:** During their conference call, Kalyan basically said, “Yeah, we’re gonna chill on paying off our debt for a bit.” Investors were hoping for some aggressive loan pay-down with all that cash flowing in. Didn’t happen. Cue disappointment.

2. **Margins feeling the squeeze:** Sure, margins improved a tad, but management admitted there’s pressure. The digital arm "Candere" is kind of a money pit right now—₹10 crore loss this quarter. Plus, promo costs are biting into profits.

3. **Gold prices doing the cha-cha:** Gold’s been all over the place price-wise. Even the company’s execs admit customers get spooked by the rollercoaster, which can mean fewer necklaces flying off shelves.

4. **Middle East: not living up to the hype:** Analysts were expecting even bigger things from overseas. Yeah, sales are up, but apparently, not “up enough” for some folks’ taste.

5. **Profit booking frenzy:** Let’s be honest, the stock’s gone up over 730% in three years. That’s insane. Some investors probably thought, “Let’s lock in these gains while the going’s good.” Can you blame them?

**So what are the “experts” saying?**

Despite the drama, the analyst crowd isn’t exactly running for the exits. In fact, most are still hyped about Kalyan’s future. Check it:

- **Citi:** Still bullish, upped their target to ₹700 (that’s about 30% upside from the current price).

- **ICICI Securities:** “Add” rating, aiming for ₹670.

- **Motilal Oswal:** Also sticking with “Buy,” target ₹700. They’re pumped about Kalyan digging deeper into non-south Indian markets, which could juice future growth.

Oh, and the company’s got some interesting tricks up its sleeve: they’re launching new regional brands, custom-tailored for each state. Smart play, honestly. Indian jewellery buyers are all about tradition and local flair—this could be a goldmine (pun intended).

**Wrapping it up**

Bottom line: Kalyan Jewellers is killing it on the numbers front. Profits, revenues, margins—they’re all heading north. But the stock market’s a weird beast, and a few worries (debt, margins, volatile gold, and plain old profit-taking) led to a sharp correction. Long story short: good company, strong growth, but investors are a skittish bunch. Welcome to the stock market circus, folks.