JEWELLERY STOCK IN FOCUS AS IT PLANS TO SELL 10% STATE IN SUBSIDIARY COMPANY

Shares of

are in focus after news suggesting that Warburg Pincus is in discussions with the Kerala-based firm to acquire about 10% stake in the jewellery maker's lifestyle brand Candere for Rs 800-850 crore. This would mark Warburg Pincus' return to the Kalyan Jewellers group as an investor, following its exit last year. The New York-based private equity firm was an investor in Kalyan Jewellers from 2014 to 2024. With the successful scale-up of it's new franchise businesses and continued success in non-South Indian markets, has established itself as a leading brand in the industry. It's non-South India expansion has improved the studded jewellery mix, while the asset-light expansion supports healthy cash flow generation for debt repayment and enhances profitability by reducing interest costs. The company is also gaining momentum in the Middle East and the US markets. The company's share price is currently trading at Rs 505 levels, down by 35% from it's all time high price of Rs 795.40 in Jan25. A breakout above Rs 600 per share would indicate a possible momentum in the stock for long term.