Mehabe score: 5 G Factor: 5 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 6.
Description
Thangamayil Jewellery Limited operates a chain of retail jewellery stores across several districts in Tamil Nadu, a state that have the largest share (40%) of India’s total gold consumption.
Main Points
High Efficiency and Utilization Rates
Utilization of own manufacturing facilities including on job work basis is around 95% as against 90-92% of the earlier years. Overall cost of production has come down due to attainment of scale of economics in the manufacturing facilities. #Site:THANGAMAYL
Market Cap:
Rs 1,115 cr
Price:
812.0
Trading pe:
12.9x
Book-value:
160/share
Div yield:
0.74 %
Earning yield:
9.90%
Face-value:
10.0/share
52week high:
951.80
52week low:
243.50
Technical Analysis
Stock trades at 812.0, above its 50dma 740.77. It also trades above its 200dma 589.08. The stock remains bullish on techicals
The 52 week high is at 951.80 and the 52week low is at 243.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has delivered good profit growth of 52.40% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 26.74%
– has been maintaining a healthy dividend payout of 17.85%
Weakness
– The company has delivered a poor sales growth of 7.44% over past five years.
Competition
– The industry trades at a mean P/E of 22.5x. Titan Company trades at the industry’s max P/E of 162.64x. THANGAMAYL trades at a P/E of 12.9x
– Industry’s mean G-Factor is 4.3 while the mean Piotski score is 6.0. THANGAMAYL has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 6.3%. The max 1- month return was given by Kalyan Jewellers: a return of 19.16 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 741.0 cr compared to Rs 359.0 cr for period ended Mar 2020, a rise of 106.4%
Operating Profits reported at Rs 28.0 cr for period ended Mar 2021 vis-vis 21.0 for period ended Mar 2020 .
Operating Margins contracted -207.1 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 10.02 compared to Rs 19.61 for previous quarter ended Dec 2020 and Rs 6.26 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1821.0 cr for period ended Mar 2021 vis-vis sales of Rs 1692.0 cr for the period ended Mar 2020, a growth of 7.1%. The 3 year sales cagr stood at 9.7%.
Operating margins expanded to 8.0% for period ended Mar 2021 vis-vis 6.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 87.0 cr for period ended Mar 2021 vis-vis sales of Rs 46.0 cr for the period ended Mar 2020, rising 47.1%.
Company recorded a healthy Net Profit CAGR of 55.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -56.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 39.0% compared to 27.0% over the last 3 Years. – The stock has given a return of 209% on a 1 Year basis vis-vis a return of 20% over the last 3 Years. – The compounded sales growth on a TTM bassis is 8% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is 90% vis-vis a compounded profit growth of 56% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 1.88% vis-vis 1.88% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 22.31% vis-vis 21.8% for Dec 2020
Conclusion
– is expected to give good quarter
– has delivered good profit growth of 52.40% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 26.74%
– has been maintaining a healthy dividend payout of 17.85% – The company has delivered a poor sales growth of 7.44% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 740.77 and is trading at 812.0, thus bullish price action wise.
