ETMarkets analysis reveals the underperformance of jewellery stocks amidst gold s record highs. Most saw negative returns, with a few exceptions. Experts suggest cautious investment strategies with focus on companies fundamentals and long-term prospects.
The stock of Kalyan Jewellers has been in an uptrend for the past two years. It advanced more than 8% in a week and over 20% in a month. It has risen more than 60% in the last six months. In terms of price action, it is trading well above most of the crucial short- and long-term moving averages such as 5, 10, 30, 50, 100 and 200-DMA, which is a positive sign for the bulls.
The company s shares made their debut on the Indian stock exchanges on December 27, 2023, listing at ₹105 apiece, representing a 5% premium to the IPO price of ₹100. Considering the stock s current market price of ₹211 apiece, it is trading 111% higher than its issue price.
Kalyan Jewellers India reported strong performance in terms of foot traffic and revenue in Q3FY24, achieving consolidated revenue growth of 33% compared to the same period last year.