KALYANKJIL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | KALYANKJIL | Market Cap | 40,236 Cr. | Current Price | 390 ₹ | High / Low | 618 ₹ |
| Stock P/E | 35.5 | Book Value | 51.1 ₹ | Dividend Yield | 0.39 % | ROCE | 15.7 % |
| ROE | 15.5 % | Face Value | 10.0 ₹ | DMA 50 | 415 ₹ | DMA 200 | 474 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | 0.67 % | PAT Qtr | 429 Cr. | PAT Prev Qtr | 262 Cr. |
| RSI | 43.4 | MACD | -8.39 | Volume | 24,15,024 | Avg Vol 1Wk | 27,05,209 |
| Low price | 348 ₹ | High price | 618 ₹ | PEG Ratio | 0.74 | Debt to equity | 0.62 |
| 52w Index | 15.6 % | Qtr Profit Var | 96.7 % | EPS | 10.7 ₹ | Industry PE | 19.9 |
📈 Chart & Trend: The stock is trading below both its 50 DMA (415 ₹) and 200 DMA (474 ₹), showing medium-term weakness. Current price (390 ₹) is closer to its 52-week low (348 ₹) than the high (618 ₹), reflecting bearish sentiment after a steep correction.
📊 Momentum Indicators: RSI at 43.4 indicates weak momentum, not oversold yet. MACD at -8.39 confirms bearish bias. Bollinger Bands suggest price leaning toward the lower band, consistent with consolidation under pressure.
🔎 Volume Trends: Current volume (24.1 lakh) is slightly below the 1-week average (27.0 lakh), showing reduced participation and lack of strong buying interest.
💡 Entry Zone: 370–390 ₹ (near support at 348 ₹, offering tactical entry)
💡 Exit Zone: 410–430 ₹ (resistance near 415 ₹, aligning with 50 DMA)
📌 Trend Status: The stock is consolidating with bearish undertones, not yet reversing.
Positive
- ROCE (15.7%) and ROE (15.5%) show decent capital efficiency.
- PEG ratio (0.74) suggests growth is reasonably valued relative to earnings.
- Quarterly PAT growth (262 Cr → 429 Cr) shows strong earnings momentum.
- Dividend yield of 0.39% provides income support.
Limitation
- Stock trading below both 50 DMA and 200 DMA shows weak technical strength.
- Debt-to-equity ratio of 0.62 is relatively high, reducing financial flexibility.
- FII holding decreased (-0.01%) and DII holding decreased (-0.67%), showing reduced institutional confidence.
- P/E (35.5) is higher than industry P/E (19.9), making valuation expensive.
Company Negative News
- Stock corrected from 618 ₹ to 390 ₹, eroding investor wealth.
- MACD negative and RSI below 50 confirm weak momentum.
Company Positive News
- Quarterly profit growth (+96.7%) highlights strong operational performance.
- EPS of 10.7 ₹ reflects steady profitability.
Industry
- Industry P/E (19.9) is much lower than company P/E (35.5), suggesting sector peers trade at more reasonable valuations.
- 52-week industry index return of 15.6% shows moderate sector momentum.
Conclusion
⚖️ Kalyan Jewellers is consolidating with bearish undertones, trading below key moving averages. Fundamentals like PAT growth and EPS are supportive, but debt levels and valuation are concerns. Tactical strategy: accumulate near 370–390 ₹ with strict stop-loss below 348 ₹, and book profits around 410–430 ₹. Sustained recovery requires crossing 415–474 ₹ resistance zones.
Would you like me to extend this into a peer benchmarking overlay against other jewellery and retail companies? That would help clarify whether Kalyan Jewellers’ valuation premium is justified compared to sector peers.