This Jewellery Stock Rallies Over 7% as Akshaya Tritiya Gold Sales Hit 122 Kg. Is It in 

Your Portfolio?

India’s love affair with gold gleamed brightly once again on Akshaya Tritiya 2025, and so did the stocks tied to it. Among them, a prominent jewellery stock—Kalyan Jewellers India Ltd—soared over 7% intraday as it reported record-breaking sales of 122 kg gold during the auspicious festival. This isn’t just a spike on the charts; it’s a telling signal of resurging consumer confidence, festive demand, and sectoral strength.

So, what triggered this rally? Is it a short-term blip or a long-term opportunity for savvy investors? Let’s decode the story behind the glitter.

Akshaya Tritiya 2025: A Golden Day for Retail and Sentiment

Akshaya Tritiya, traditionally considered one of the most auspicious days to buy gold in India, has always been a barometer for gauging gold consumption trends. This year, with gold prices hovering above ₹72,000 per 10 grams, many expected muted demand.

However, the reality turned out to be quite the opposite.

“We witnessed exceptional footfalls across our stores and online platforms, resulting in 122 kg gold sales in just one day, a 15% increase year-over-year,” said a Kalyan Jewellers spokesperson.

The impressive sales were attributed to:

• Rising disposable incomes post-pandemic

• Aggressive festive campaigns

• Easy gold loan and EMI schemes

• Return of big-ticket wedding purchases

This surge in retail activity had a direct and immediate impact on the company’s stock price.

Kalyan Jewellers Stock Performance: Charting the 7% Rally

On May 11, 2025, the day following Akshaya Tritiya, shares of Kalyan Jewellers opened at ₹328 and quickly climbed to ₹351.60 — marking a 7.2% intraday gain, before closing at ₹347.

Volume spike: Trading volume was more than 2.5x the 30-day average, showing strong investor conviction.

Technical Snapshot:

The stock has already returned over 60% in the last 12 months, and now this rally could fuel a fresh breakout towards the ₹375–₹400 zone if momentum sustains.

What’s Fueling the Rally?

Besides the massive gold sales, several underlying catalysts are driving renewed investor interest in jewellery sector stocks:

1. Festive Gold Buying in Full Swing

Despite high prices, sentiment around gold remains strong due to its cultural relevance, inflation hedge, and gifting value.

2. Shift Toward Branded Jewellery

Consumers are increasingly preferring branded players like Kalyan, Titan’s Tanishq, and Senco over unorganized jewellers. This consolidation trend is expanding market share for listed firms.

3. Expansion Strategy Paying Off

Kalyan Jewellers has been expanding aggressively in Tier-II and Tier-III cities while also growing its Middle East operations. New store launches during Q4 FY25 have already added to the sales boost.

4. Improving Margins and Earnings Visibility

With a focus on studded jewellery, which has higher margins, and reduction in working capital cycles, profitability has been trending upward quarter-over-quarter.

Financial Performance: A Glittering Track Record

Kalyan Jewellers has reduced debt, improved margins, and expanded revenue without diluting equity. This speaks volumes about its financial discipline and growth strategy.

Sectoral Tailwinds: Jewellery Industry Outlook

The Indian jewellery market is expected to grow at a CAGR of 9.5% from 2024–2030, driven by:

• Urbanization and rise of nuclear families

• Higher disposable income in rural India

• Gold as an alternative investment avenue

• Government initiatives for hallmarking and digital tracking

The organized jewellery sector’s market share is expected to grow from 33% to 47% by FY30, a major tailwind for listed players.

Analyst Views: More Upside in the Offing?

Brokerages have taken note of the recent spike in performance.

ICICI Securities:

“Kalyan Jewellers is benefiting from festive gold buying, store expansion, and brand premium. We expect 20% upside over the next 6–9 months, with a target of ₹420.”

Motilal Oswal:

“Valuation remains attractive at 19x FY26 EPS. The post-Akshaya Tritiya demand surge should reflect positively in Q1 FY26 numbers.”

Should You Add This Stock to Your Portfolio?

 Pros:

• Strong brand recall across urban and rural India

• Promoter group with retail pedigree and solid execution

• Aggressive but calculated expansion strategy

• Robust quarterly sales pipeline

• Margin expansion potential from premium jewellery mix

 Risks:

• High dependence on gold price volatility

• Regulatory scrutiny on sourcing and hallmarking

• Strong competition from players like Titan and regional names

Investment Strategy: Tactical or Long-Term?

Investors can approach Kalyan Jewellers as:

• A tactical play on festive sales, with likely upside post Q1 FY26 earnings

• A long-term bet on India’s consumption boom and shift to organized retail

Either way, the valuation remains attractive, and strong brand trust, especially among first-time buyers, gives it an edge over peers.

Final Verdict

The 7% rally following 122 kg of gold sales on Akshaya Tritiya is more than just a headline. It reflects growing investor faith in the jewellery sector, especially among players who have proven themselves post-COVID.

Kalyan Jewellers has demonstrated a mix of tradition and transformation—leaning on heritage while also modernizing store formats, digitizing backend operations, and penetrating new markets.

So, the real question isn’t whether the stock is up 7%—the real question is: Is it in your portfolio yet?