- Kabra Jewels’ shares surged by 5% to Rs. 152.1 despite FPI Necta Bloom VCC selling 0.68% stake.
- The stock is trading at a nearly 43% discount compared to its 52-week high.
- Jewellery stocks, including Kabra Jewels, have benefitted from a rise in gold prices, with significant gains in April 2025.
Kabra Jewels Limited’s stock price hit a 5% upper circuit during Wednesday’s session, climbing to Rs. 152.1 despite a foreign institutional investor offloading a 0.68% stake.
The company’s financial performance has been strong, with a 34% year-on-year increase in revenue, growing from Rs. 122 crores in FY23 to Rs. 163 crores in FY24.
Kabra Jewels Resilient Amid Stake Sale: A Glimpse at Jewellery Sector Surge
Kabra Jewels Limited, which operates in the retail jewellery business, saw its stock price rise by 5% to Rs. 152.1 on the National Stock Exchange (NSE). This increase comes despite a foreign institutional investor, Necta Bloom VCC, selling a 0.68% stake through a bulk deal. The sale, valued at Rs. 99.4 lakhs, did not have a significant negative impact on the company’s market performance.
The company’s 52-week high of Rs. 265, reached in January 2025, remains far above the current trading price, indicating that the stock is currently available at a discount. Despite this, investor sentiment remained positive, with Kabra Jewels benefiting from an overall bullish outlook on jewellery stocks in India. Other jewellery companies like Senco Gold, Titan, and Kalyan Jewellers also saw notable gains in April.
Kabra Jewels reported a substantial growth in its revenue, with a year-on-year increase of 34%, showing its solid fundamentals. This financial strength comes amid a broader rally in jewellery stocks, driven by a surge in gold prices. Gold has become one of the best-performing asset classes this year, outperforming many others in global markets.
The growing demand for gold and jewellery stocks on Dalal Street is reflected in investor confidence, with jewellery stocks continuing to rise despite soaring prices. Kabra Jewels, with its solid performance and discount pricing, is poised to benefit from this upward trend in the sector, even as it faces occasional selloffs from foreign investors.
Kabra Jewels’ performance reflects the resilience of domestic jewellery stocks in India. Despite challenges like foreign stake sales, its strong financial growth and the ongoing gold price surge make it an attractive option for investors.
“Despite external pressures, Kabra Jewels’ strong fundamentals and the sector-wide gold rally showcase how a well-positioned company can thrive.”
