Thangamayil Jewellery has witnessed a strong spike in its share price, with a significant jump from ₹763 to ₹1,169 per share in the last one month, delivering a tremendous return of 53.21% to its shareholders. The major portion of this surge occurred in the last six trading sessions of July after the company delivered a robust performance for the June quarter.
This recent stock boom has resulted in a stunning 122% gain over the last three-month period. Further, the stock is trading 149% higher than its 52-week low of ₹470, reached in November last year. The company's shares have been trading ex-bonus in a 1:1 ratio since July 17.
Thangamayil Jewellery Limited is in the business of manufacturing and retailing gold ornaments, silver articles, and diamond products and mainly operates out of 54 retail outlets (including TMJL Plus) spread across the southern and western districts of Tamil Nadu.
A powerful brand in the areas of operation with a large customer base of well over 25 lakh customers, the brand is a household name in the southern and western districts of Tamil Nadu, the company said in a regulatory filing.
The company reported its highest-ever quarterly revenue of ₹959 crore in Q1 FY24, as compared to a revenue of ₹826 crore in Q1FY23. The robust performance was due to a significant surge in gold prices, increased price realisation, and growth in sales across various product categories. The company said it had the benefit of better realisation on gold price movement of nearly ₹32 crore.
Out of the total revenue of ₹959 crore recorded during the quarter, retail sales experienced a significant year-on-year growth of 27% to reach ₹930 crore, compared to ₹731 crore in the same period last year.
Among the retail sales, gold jewellery sales accounted for ₹842 crore, while non-gold sales, which include diamond, silver, and other products, came in at ₹88 crore, a surge of 31% YoY.
The operating profit during the quarter jumped to ₹92 crore from ₹36 crore in the same period of last year. In the preceding March quarter, the company posted an operating profit of ₹59 crore.
The company's net profit experienced an impressive three-fold increase, reaching ₹59 crore in the latest quarter, compared to ₹19 crore in the year-ago quarter. Furthermore, the company achieved its highest-ever quarterly earnings per share (EPS) of ₹42.72 during Q1FY24.
"Since the closure of the first quarter, the gold price has declined by 3%, and if it continues to be so in the current quarter ending September, it would have an impact on the results going forward on the closing inventory held at the end of the first quarter to the extent of the unhedged portion of 25% of aggregative inventory," the company said in a regulatory filing.
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