A prominent Indian jewelry retail chain, renowned for its extensive network and traditional designs, faces recent market turbulence. The news delves into the company’s latest developments, including share pledging by promoters and market reactions to bribery allegations, which were strongly refuted by a major asset management firm, leading to significant stock movements.
Recent Stock Performance
Despite the recent uptick, Kalyan Jeweller’s stock has experienced significant volatility in early 2025. The company’s shares declined 35% in 3 week from jan 1. The current market price is Rs. 499.40, reflecting a daily decline of 5.93%. Over the past year, the return has increased by 41.60%, and over the past five years, it has surged by 562.70%.
Meanwhile, Motilal Oswal Financial Services also felt the market’s skepticism. Their shares recovered 4% to Rs 827.10 on January 20, following a 7% decline.
Motilal Oswal AMC Firmly Denies Bribery Allegations
On January 20, 2025, Kalyan Jewellers India’s stock surged 9.4% following Motilal Oswal AMC’s strong denial of bribery rumors. The stock climbed to Rs 548.65 on the BSE, marking a significant recovery.
Moreover, Motilal Oswal AMC swiftly addressed the controversy, labeling the allegations as “baseless, malicious, and defamatory.” The asset management company emphasised its four-decade legacy of ethical practices.
Furthermore, the asset manager released a comprehensive statement defending its reputation. “These accusations on social media stem from individuals with vested interests attempting to tarnish our firm’s reputation,” the company declared.
Recent Update
According to a regulatory filing on January 20, 2025, promoters Ramesh Trikkur Kalyanaraman and Seetharam Trikkur Kalyanaraman, each holding 18.04% in the company, pledged shares. Ramesh pledged 7.65% to five entities, while Seetharam pledged 7.998% to six entities.
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Management’s Response & Business Update
During a recent analyst call, Executive Director Ramesh Kalyanaraman confidently dismissed the circulating rumors. He addressed concerns about alleged income tax raids and inventory overvaluation.
Subsequently, the company reported impressive financial results for December 2024. Kalyan Jewellers achieved 39% consolidated revenue growth and 41% revenue increase in its India operations.
Furthermore, the company demonstrated strong operational performance with 24% same-store sales growth. They successfully opened 24 new outlets during the quarter.
Share Holdings
As of December 31, 2024, the company maintains a diverse ownership structure. Foreign institutional investors hold 16.37%, while domestic institutional investors control 13.58%.
Currently, Kalyan Jewellers operates an extensive network of 349 outlets worldwide. This includes 253 stores in India, 59 Candere stores, and 36 locations in West Asia.
Interestingly, the promoters, led by Kalyanaraman T.S., maintain majority control with a 62.85% stake. Motilal Oswal Midcap Fund holds the largest mutual fund position at 6.30%.
Written By Fazal Ul Vahab C H
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