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market | IST

Moneycontrol Pro: Thangamayil Jewellery in focus, here’s why

In a few ideas for profit from Moneycontrol Pro, Bharat Gianani of Moneycontrol.com spoke about a stock that he is tracking closely, Thangamayil Jewellery.

In a few ideas for profit from Moneycontrol Pro, Bharat Gianani of Moneycontrol.com spoke about a stock that he is tracking closely, Thangamayil Jewellery.
The business is witnessing recovery post the unlocking measures announced by the government. While the initial recovery in the month of July was moderate, the company saw a strong recovery in the month of August with the onset of one of the festivals.
With COVID-19 pandemic receding, the company’s store expansion strategy would resume and the company aims to open 4-5 new stores in the current fiscal.
The company would focus on value-added jewellery such as wedding jewellery, precious stones and studded diamond jewellery. Strong growth is expected to be seen in the second half driven by the consumer pent-up demand and the onset of the festive and the marriage season.
With the COVID-19 pandemic, the unorganized players have been severely impacted and are facing liquidity issues which would result in market share gains for the organized players such as Thangamayil Jewellery.
Further, with the government mandating hallmarking regulations, accelerated shift is expected to be seen towards the organized segment.
The stock is trading at 14 times FY23 expected earnings which is attractive.
For more, watch the accompanying video.