Titan Company, Kalyan Jewellers India, Senco Gold, Sky Gold And Diamonds among other jewellery stocks crashed up to 9% on Monday after Prime Minister Narendra Modi urged citizens to postpone purchases of gold among other measures to save foreign exchange due to the crisis.
Titan share price declined as much as 6.4%, Kalyan Jewellers India shares dropped 8.3%, Sky Gold stock price plunged 12.2%, Senco Gold stock tanked 10.7%, PN Gadgil Jewellers shares slipped 7%, PC Jeweller shares fell 5% and Tribhovandas Bhimji Zaveri shares cracked 6.3%.
Speaking at the event in Hyderabad on Sunday, PM Modi stressed the need to save foreign exchange due to the Middle East crisis, and appealed citizens to avoid buying gold for weddings for the next one year.
"We have to save foreign exchange by any means," he said.
PM Narendra Modi also called for judicious use of fuel, postponement of foreign travel, among other measures, to strengthen the economy.
Meanwhile, according to a report from CNBC-TV 18, Jewellery Associations are said to meet officials from the Prime Minister Office (PMO) tomorrow.
India imports a substantial quantity of gold every year. The long-term annual average remains close to 800 tonnes, creating significant pressure on foreign exchange outflows and the current account balance.
Following the Prime Minister's commentary, the market is also anticipating the possibility of a higher import duty on gold to curb unnecessary imports and manage dollar outflows. Industry estimates suggest that a duty hike could reduce gold import volumes by nearly 10-12%.
Jewellery stocks also reacted to their Q4 results. Titan Company and Kalyan Jewellers reported strong earnings for the fourth quarter of FY26. However, the stocks declined after PM Modi's appeal.
Titan Q4 Results Review
Jewellery and watch maker Titan Company's consolidated net profit rose 35.4% year-on-year (YoY) to ₹1,179 crore, while the company's revenue from operations surged 77.6% YoY to ₹23,934 crore.
The company's jewellery portfolio grew 50% YoY to around ₹18,195 crore during the March quarter, excluding bullion and digi-gold sales, despite elevated gold prices.
The board of the Tata Group company also recommended a dividend of ₹15 per equity share of face value Re 1 each for FY26.
Brokerage firm Motilal Oswal said that Titan Company, with its superior competitive positioning, continues to outperform other branded players. Its brand recall and business moat are not easily replicable; therefore, Tanishq's competitive edge will remain strong in the category. Apart from industry formalization, stability in gold prices can further improve margin visibility for Titan.
Overall, the brokerage firm remains constructive on jewelry industry growth for top players, and Titan, being the bellwether with superior historical execution track record, will benefit the most. It models a CAGR of 15% in sales, 20% in EBITDA, and 24% in APAT over FY26-28E.
Motilal Oswal reiterated its 'Buy' rating on Titan shares and raised the target price to ₹5,300 apiece.
Kalyan Jewellers Q4 Results
Kalyan Jewellers India's net profit jumped 118.2% YoY to ₹409.5 crore from ₹187.6 crore in the corresponding period last year. Revenue from operations in Q4FY26 increased 66.2% to ₹10,274.9 crore from ₹6,181.5 crore, YoY.
The company's board recommended a final dividend of ₹2.5 per equity share of face value ₹10 each for FY26.
Motilal Oswal raised its EPS estimates by 4% for FY27 and FY28. It noted that with the successful scale-up of its new franchise businesses (>50% revenue contribution) and continued success in non-Southern markets, Kalyan Jewellers has established itself as a leading brand in the industry.
Its non-South expansion has improved the studded jewelry mix, while the asset-light expansion supports healthy cash flow generation for debt repayment and enhances profitability by reducing interest costs, Motilal Oswal said.
The brokerage firm models a 21%, 16% and 22% revenue, EBITDA and PAT CAGR during FY26-28E. It reiterated 'Buy' rating on Kalyan Jewellers shares with a target price of ₹575 per share.
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