Thangamayil Jewellery - Steady As A Rock: HDFC Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.We recently met Thangamayil Jewellery Ltd. management and came back positive about its medium-term growth prospects. We reiterate our high-conviction Buy with a target price of Rs 2,550 (Dec-26 EPS). Key takeaways from our meeting are as follows:Jewellery demand remains strong, underpinned by tailwinds of hallmarking, the recent customs duty reduction from 15% to 6%, and aggressive store expansion. However, in the near term, the demand environment is challenging due to the sharp surge in gold prices.Store addition momentum is expected to sustain as the company plans to add eight-10 stores annually over the medium term. The flagship Chennai store (9000-10,000 sq ft) is likely to commence operations from Jan 2025.Adjusted Ebitda margin to see at least ~100bps improvement from 5.2% in FY24 to 6.2%, led by improving mix, operating leverage, and higher making charges on gold jewellery.Risk capital for store addition is well supported by the announced rights issue of up to Rs 6 billion and increased contributions from the Digi Gold app/advanced purchase scheme. .Key risks to our call:increased volatility in gold prices could impact consumer demand and mainstream jewellery branded players could foray into tier-II/tier-III/tier-IV cities, where Thangamayil primarily operates..Click on the attachment to read the full report:.IT Sector Q2 Results Preview - Recovery In Progress: HDFC Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Thangamayil Jewellery - Steady As A Rock: HDFC Securities

The brokerage reiterates its high-conviction Buy with a target price of Rs 2,550.

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