Thangamayil Jewellery Ltd, engaged in the business of manufacture and sale of gold, diamond and silver articles. The company has an established manufacturing unit in Madurai and an operating area of around 78,000 square feet across 54 showrooms. Its branches in southern and western districts include Madurai, Sivakasi, Ramnad and Tuticorin among many others.
Stock Performance
With a market capitalization of Rs 6,230.86 crore, shares of Thangamayil Jewellery Ltd went up 9 percent to a day’s high of Rs 2205.90 per share when compared to its previous closing price of Rs 2019.25 per share. The stock is currently trading at a 21 percent discount to its 52-week high of Rs 2,558.06.
Store Expansion
Currently, the stores are largely in the southern and western districts of Tamil Nadu and have limited presence in Chennai. The company is trying to combat this by opening three more stores in the city in the upcoming quarter, Q4 FY25.
Since 2010-2011, it has strategically expanded in southern Tamil Nadu, opening 31 branches within two years of becoming a public limited company. Its expansion plan targets both Tier 2 and Tier 3 cities, covering small towns to major cities.
Backward Integration
By producing jewelry on demand, they can reduce excess stock and respond quickly to fluctuations in demand caused by price changes. Instead of establishing its own facility, the company plans to form trade partnerships with manufacturers to meet current production needs. This strategy allows the company to maintain quality and supply flexibility while minimizing costs.
Financial Performance
In the latest quarter, the company reported a 26 percent growth in revenue from Rs 896 crore in Q3 FY24 to Rs 1,132 crore in Q3 FY25. This was accompanied by a 71 percent increase in net profits from Rs 28 crore to Rs 48 crore during the same period.
Rising Gold Prices
Rising gold prices can boost jewelry stocks by increasing inventory value but may also raise costs and reduce consumer demand. Regarding the impact of gold prices on margins, Thangamayil Jewellery has increased its hedging policy to 85-90 percent. Despite high gold prices, its strong presence in Tamil Nadu and expansion strategy help sustain growth.
Industry Outlook
India’s gems and jewellery sector will be driven by large retailers and established brands. Improved availability, low-cost gold metal loans, and stable gold prices are expected to aid volume growth in the short to medium term. The industry itself is projected to reach USD 100 billion by 2027.
Written by Shwetha Sairam
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
