Kalyan Jewellers shares wipe off Rs 27,400 crore wealth in 2 weeks
Kalyan Jewellers India have witnessed a dramatic selloff this month, erasing Rs 27,400 crore in market value in just two weeks. The stock has plummeted 33.7% during this period, with its market capitalization now standing at Rs 53,949.23 crore.
On Thursday, the Kalyan Jewellers shares were down 6.7% to Rs 518.40 on the BSE, following an 8% drop on Wednesday, which included hitting a 10% lower circuit. This marked the ninth decline in the last 10 trading sessions, a period that has seen the stock gain only once.
The Thrissur-based jewellery maker has also been involved in speculation surrounding bribery allegations, which the company has firmly denied. In an analyst call on Tuesday, Executive Director Ramesh Kalyanaraman dismissed rumors about bribery allegations against money managers, income tax raids, and overvaluation of inventory as «very absurd.» Kalyanaraman also clarified that the company has no plans to purchase any aircraft and currently operates a helicopter.
Despite these assurances from company management, the selloff in company’s shares has continued unabated. The stock’s precipitous decline comes after soaring nearly 940% since its March 2021 IPO to a peak of Rs 795 earlier this month.
Investor sentiment has soured despite the jewellery maker reporting a 39% consolidated revenue growth and a 41% revenue increase in its India business in the December quarter. Kalyan Jewellers attributed the strong quarterly results to robust festive and wedding demand, achieving nearly 24% same-store sales growth
