Kalyan Jewellers share price dips after promoters’ stock pledge update

Kalyan Jewellers share price declined 3% on Thursday, February 6, snapping their two-day winning run, following a stock pledge update by the company.

Kalyan Jewellers told Mint that its promoter, Seetharam Trikkur Kalyanaraman, has unpledged the equity shares of the company previously pledged in favour of HSBC Invest Direct Financial Services. On the same day, February 3, 2025, the promoter re-pledged the same number of shares, totalling 60.97 lakh, in favour of Catalyst Trusteeship Limited.

In January 2025, the promoter had pledged 1.94 crore shares with Catalyst Trusteeship Limited, while in September 2024, the total number of pledged shares stood at 8.51 crore. Notably, no new pledges were created by the promoter in February.

Overall, the total shares pledged with Catalyst Trusteeship is 11.07 crore, representing a 10.73% stake.

Following this update, Kalyan Jewellers shares snapped their two-day winning streak, and dipped 5% to the day's low of ₹539.10 on the BSE.

Kalyan Jewellers share price opened at ₹563.50, slightly lower than the previous close of ₹567.60 apiece. The stock settled the day 4.49% lower at 542.10 apiece.

Kalyan Jewellers Share Price Trend

The jewellery stock has been on a roller coaster ride off late, with the stock witnessing heavy battering last month followed by a sharp rebound.

The selloff in Kalyan Jewellers shares came amid social media rumors alleging misconduct by Motilal Oswal AMC fund managers regarding the company's stock. The company refuted these claims, clarifying that no IT raids occurred and dismissing bribery allegations as "absurd".

Meanwhile, in the last five trading sessions (barring today's), Kalyan Jewellers shares have surged as much as 26% on the back of positive triggers such as strong quarterly earnings and the Budget 2025 announcement of a reduction in duty on certain precious metals, including gold jewellery.

Kalyan Jewellers Q3 Report Card

Kalyan Jewellers reported a 44% year-on-year (YoY) growth in its profit after tax (PAT), amounting to ₹219 crore, up from ₹180 crore in the same period last year. The consolidated PAT growth comes after adjusting for the loss due to the reduction in customs duty announced in the Union Budget in July 2024.

Additionally, Kalyan Jewellers posted consolidated revenue of ₹7,287 crore for Q3 FY25, compared to ₹5,223 crore in the same quarter of the previous year, reflecting a 40% growth.

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