Kalyan Jewellers shares down 12% from recent record high levels; should you enter?

Shares of Kalyan Jewellers India Ltd slipped 3.85 per cent in Monday's trade to hit a low of Rs 483. At this price, the stock has declined 11.56 per cent from its record high of Rs 546.15, a level seen during the previous session. Despite the mentioned fall, the multibagger scrip has gained more than 225 per cent in a year.

A few analysts largely remained positive on the counter. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "The stock has been one of the outperformers. It is currently doing good on account of its strong showroom network. Also, gold price hike has not impacted the company's sale figures. It is fully priced-in stock at this point of time."

Investors with long-term horizon can continue to hold on to the stock, the market expert added.

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said the counter has potential to hit an upside target of Rs 530 in the near term. Keep stop loss placed at Rs 483 for this trade, Singh mentioned.

Bourses BSE and NSE have put the securities of Kalyan Jewellers under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 70.93. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 93.39 against a price-to-book (P/B) value of 12.42. Earnings per share (EPS) stood at 5.38 with a return on equity of 13.30.

Around 2.01 lakh shares changed hands today on BSE at the time of writing this story. The figure was lower than the two-week average volume of 2.54 lakh shares. Turnover on the counter came at Rs 9.85 crore, commanding a market capitalisation (m-cap) of Rs 50,330.01 crore.

As of March 2024, promoters held a 60.63 per cent stake in the company.