Gold at Record Highs but This Stock is Near its 52-Week Low

In 2024, gold delivered 20% compared to the Nifty's 8.7% gain. In 2025 the upward momentum continued with gold rising 78% while the Nifty was 10.5%.

If we track the gold price on a long term chart, we can see that the recent up move began in early 2024, i.e. about 2 years ago.

The gold price has been moving up sharply since February 2024 from 64,000 per 10 gm. At current levels of Rs 168,000 per 10 gm, that's a gain of about 162% in 2 years. That's a compounded annualised growth rate (CAGR) of 62%.

But one stock has been a disappointment for investors over the last few years: Kalyan Jewellers.

After a stellar run up in the 2022-2024 period, the stock has languished. The stock peaked along with the Nifty back in September 2024 and significantly underperformed the market since.

A long term chart of the stock price makes that clear.

Kalyan Jewellers Share Price - 3 Years

So, why is this the case? What explains the decline in the share price?

Let's find out...

#1 Negative Sentiment on Dalal Street

The major reason for the decline in the stock price is the company's reputation taking a beating on Dalal Street.

Kalyan Jewellers has been the subject of various market speculations, including rumours about the purchase of an aircraft, alleged income tax raids, inventory overvaluation, and gold purity.

Allegations have circulated on social media about misconduct involving fund managers at Motilal Oswal Asset Management Company (AMC) in relation to Kalyan Jewellers' shares. Both the company and the AMC have dismissed these allegations.

The promoters, including TS Kalyanaraman and Ramesh Trikkur Kalyanaraman, have pledged substantial portions of their shareholdings to secure loan facilities.

All this has raised concerns among investors about corporate governance.

The company has dismissed the allegations. The management has said that no IT raids have been conducted and called the allegation of bribing fund managers to influence the stock price, 'absurd'.

But the rumours have negatively impacted investor confidence. What's worse is that the rumours have refused to die down.

#2 Promoter Pledge

Back in the September 2024 quarter, the promoter pledge was reported as 19.32% from zero in the previous quarter.

This pledged stake increased to 24.89% in the March 2025 quarter. While the pledged shareholding has not increased since then, this issue remains an overhang on the stock.

The FII holding has steadily declined over the last few years. From almost 30% at the end of FY23, the FII stake in the company now stands at 14.1%.

However, mutual funds have absorbed some of the selling in the stock. Indian mutual funds' stake in the company has increased from 10.49% in March 2025 to 14.54% in December 2025.

#3 Valuations

Another headache for investors is the valuations of the stock. At a PE of 40 and a PB of 7, the stock does not offer much in terms of a margin of safety, even after the recent correction.

In such situations, what tends to happen is that many investors prefer to wait and watch until they feel comfortable buying the stock. This reduces the buying interest in the stock which in turn makes it even more vulnerable to a correction due to the ongoing selling pressure.

These are all the important points for investors to consider in the case of Kalyan Jewellers.

What about the fundamentals of the stock?

Over the last few years, the company has delivered on the growth front.

From FY22 to FY25, the company sales increased 2.5 times from Rs 108.12 bn to Rs 250.4 bn. In the same period the net profit has more than tripled from Rs 2.24 bn to Rs 7.14 bn.

It's debt free and has maintained a return on capital over 20%.

But the major overhang on the stock has been the concerns about corporate governance. More clarity could emerge on this front after the quarterly results are declared in a few days.

The latest quarterly update earlier this month signalled continued growth of the business.

The company reported a 42% year-on-year (YoY) rise in consolidated revenue of Rs 73.2 billion (bn) in the September quarter due to strong festive demand.

The core business in India reported a same store sales growth of 27% YoY. The international business was up 36% YoY. The company's digital business 'Candere' delivered 147% YoY growth.

The company launched 21 showrooms in India, its first showroom in the UK, and 14 Candere showrooms in India during the quarter.

The total showroom count of the company at the end of 2025 was 469 (318 in India, 38 in the Middle East, 2 in the US, 1 in the UK, and 110 Candere).

The company will report its quarterly results on 6 February 2026.

About Kalyan Jewellers

Kalyan Jewellers India Ltd is one of the largest jewellery companies in India.

The company is engaged in retailing gold, diamond, platinum, and silver jewellery products. It also provides facilities like gold insurance, wedding purchase planning, gift vouchers, and gold buying tips.

Having ventured into jewellery retailing in 1993 in Thrissur, Kerala, the company has since expanded to become a pan-India jewellery company.

Kalyan Jewellers also has an international presence in 5 countries.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stocks when conducting due diligence before making any investment decision.

For more details, you can have a look at the Kalyan Jewellers fact sheet and quarterly results.

For a sector overview, read our retailing sector report.

You can also compare Kalyan Jewellers with its peers.

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Kalyan Jewellers vs PC Jeweller

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Happy investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...