Kalyan Jewellers Stock Tumbles 22% in Eight Days

Kalyan Jewellers Under Pressure

Shares of Kalyan Jewellers India Ltd. experienced a significant downturn on Wednesday, falling 12.4% to close at ₹396. This sharp decline marked the eighth consecutive session of losses for the stock, accumulating a total drop of 22% during this period. The persistent selling pressure has been a defining feature of the stock's performance in early 2026, with its value decreasing in 10 of the first 13 trading sessions of the year. This extended sell-off has pushed the stock towards its 52-week low, raising concerns among investors about its near-term trajectory.

Rising Promoter Pledges and Valuation Gaps

A key factor contributing to market apprehension is the increase in pledged shares by the company's promoters. As of December 2025, the percentage of promoter-held shares pledged as collateral rose to 24.89%, a notable increase from 19.32% recorded in December 2024. An increase in pledged shares can sometimes be interpreted by the market as a sign of financial strain on the promoters, which can negatively impact investor sentiment. Furthermore, the current market price of ₹396 is substantially lower than the ₹535 per share at which promoters acquired a 2.36% stake from private equity firm Warburg Pincus in August 2024. This discrepancy highlights a significant erosion in value since that transaction.

Divergence in Investor Behavior

The recent price action has revealed a clear divergence between institutional and retail investor behavior. While the stock has been declining, the number of retail shareholders has grown. The count of retail investors increased from 5.59 lakh in December 2024 to 6.62 lakh by December 2025. This represents a growth in their collective holding from 5.17% to 5.88% of the company's total shares. This trend suggests that smaller investors may view the current low prices as an attractive entry point, anticipating a future recovery.

Mixed Signals from Institutional Funds

In contrast to the growing retail base, some institutional investors have been reducing their exposure. Motilal Oswal Midcap Fund, a significant shareholder, trimmed its stake from 9.05% in December 2024 to 6.3% by December 2025. Such a move by a large fund can signal a lack of confidence in the stock's immediate prospects. However, the institutional sentiment is not uniformly negative. During the same period, Sundaram Midcap Fund made a new entry, acquiring a 1.02% stake. Additionally, the Government of Singapore marginally increased its holding from 1.75% to 2.01%, indicating continued, albeit cautious, interest from some large-scale investors.

Key Data at a Glance

To provide a clear overview of the situation, the following table summarizes the critical metrics discussed:

Market Performance in Context

The recent eight-day slide is part of a broader trend of underperformance. Including the latest fall, Kalyan Jewellers' stock is down approximately 18% over the last 12 months. The stock's 52-week high stands at ₹617.70, while its 52-week low is ₹399.40. The current price is testing this lower boundary, a critical technical level that traders and investors are watching closely. The sustained decline suggests that negative factors are currently outweighing any positive operational updates or fundamental strengths the company may possess.

Analysis of the Sell-Off

The persistent decline in Kalyan Jewellers' share price appears to be driven by a combination of technical and fundamental concerns. The rising promoter pledge is a significant overhang, creating uncertainty about the promoters' financial stability. While the increase in retail participation is a positive sign of grassroots interest, the reduction in stake by a major institutional fund like Motilal Oswal carries significant weight in the market. The mixed institutional signals suggest a divided opinion on the company's valuation and future prospects. The market seems to be pricing in a higher risk premium until there is more clarity on the promoter's position and a stabilization in the stock price.

Conclusion

Kalyan Jewellers is currently navigating a challenging period marked by a severe stock price correction. The combination of a multi-day losing streak, increased promoter pledges, and cautious sentiment from some institutional players has created significant headwinds. While the growing retail shareholder base provides a silver lining, the market will likely await a decisive halt to the selling pressure and more concrete positive catalysts before confidence is fully restored. Investors will be closely monitoring promoter activities and institutional fund flows in the coming weeks for indications of the stock's future direction.