The shares of the Small-Cap jewellery company specializing in the retail and design of gold, silver, diamond, and platinum jewelry and articles, are in focus as the stock has rallied upto 39 percent in the last two days. In this article, let’s explore the reason behind the rally.
With a market capitalization of Rs. 9,110.61 crores on Tuesday, the shares of Thangamayil Jewellery Ltd rose by 18.8 percent, reaching a high of Rs. 3093.30 per share compared to its previous closing price of Rs. 2603.30 per share.
Reason for the Rally
Thangamayil Jewellery Ltd, engaged in the retail and design of gold, silver, diamond, and platinum jewelry and articles, has rallied up to 39 percent in the last two trading sessions with the stock hit a 20 percent upper circuit on Monday and continuing the rally following their Q2 Results and more as follows:
QoQ performance
Thangamayil Jewellery reported healthy sequential improvement with Sales rising 10 percent QoQ to Rs. 1,711 crores from Rs. 1,558 crores. EBITDA increased 22 percent QoQ to Rs. 106 crores from Rs. 87 crores, while Net Profit grew 28 percent QoQ to Rs. 58.5 crores from Rs. 45.7 crores.
YoY performance
YoY momentum was extremely strong with Sales up 45 percent from Rs. 1,181 crores to Rs. 1,711 crores, EBITDA saw a turnaround to Rs. 106 crores from a loss of Rs. 7.45 crores, and Net Profit also saw a turnaround to Rs. 58.5 crores from a loss of Rs. 17.4 crores. In today’s session, the stock has rallied by almost 19%, nearing its upper circuit limit, following the management’s guidance.
SM Lakshmanan, part of Thangamayil Jewellery’s shared exciting updates during an interview with CNBC-TV18. He announced that the company’s revenue for October had crossed Rs. 1,000 crore for the first time ever. Looking ahead, Thangamayil is on track to exceed Rs. 7,000 crore in revenue for FY26, surpassing its earlier guidance of Rs. 6,000 crore. The company’s strong EBITDA gain is largely driven by robust operational performance.
Lakshmanan also highlighted that Chennai is expected to contribute 20% of total sales in FY26, a significant shift from the previous absence of sales from the city. The company plans to maintain its margin at 6% while focusing on expanding its presence in and around Chennai over the next two years.
Additionally, Thangamayil aims to surpass the 36% revenue growth rate achieved in the first half of the year, with even stronger performance expected in the second half.
Company Overview & Others
Thangamayil Jewellery Limited (TMJL) is one of the fastest-growing companies in India, positioned as a chain of retail jewelry stores across several districts in Tamil Nadu. South India, comprising five states, accounts for 40% of India’s total gold consumption (WGC).
It was established in 2000 and sells gold, silver, diamond, and platinum jewelry through a chain of stores across the state. The company, which grew from a partnership business started in 1947, has a business model focused on serving ethnic customers in Tier 2 and Tier 3 cities and rural areas, and it also has manufacturing units to create designer jewelry.
The company has shown strong financial performance, with a ROCE of 13.7 percent and ROE of 14.9 percent, supported by a moderate debt-to-equity ratio of 0.96. It has achieved impressive profit growth, posting a 21.1 percent CAGR over the last five years, while maintaining a healthy dividend payout of 25.2 percent.
Written by Sridhar J
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