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Check Before You Invest : Thangamayil Jewellery Ltd

BSE: 533158 NSE: THANGAMAYL ISIN: INE085J01014
  |   Sector:  Consumer Durables   |   Industry:  Diamond & Jewellery

Snapshot

Q.1 Which industry/sub-sector does Thangamayil Jewellery Ltd belong to?
Thangamayil Jewellery Ltd belongs to the Consumer Durables sector, operating specifically within the Diamond & Jewellery segment.
Q.2 Is Thangamayil Jewellery Ltd a good quality company?
Thangamayil Jewellery Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.
Q.3 Is Thangamayil Jewellery Ltd undervalued or overvalued?
Thangamayil Jewellery Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Thangamayil Jewellery Ltd a good buy now?
Thangamayil Jewellery Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Thangamayil Jewellery Ltd?
Thangamayil Jewellery Ltd revenue growth is 28.3% for FY-2025, which is above its 5-year CAGR of 23.75%, indicating faster growth.
Q.2 Return on capital employed (ROCE) of Thangamayil Jewellery Ltd?
Thangamayil Jewellery Ltd Return on capital employed is 14.43% for FY-2025, which is below its 5-year historical median of 17.55%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.
Q.3 Return on Asset of Thangamayil Jewellery Ltd?
Thangamayil Jewellery Ltd Return on Asset is 5.89%, which is below its 5-year historical median of 7.42%, indicating deteriorated asset utilization efficiency.
Q.4 Return on Equity (ROE) of Thangamayil Jewellery Ltd?
Thangamayil Jewellery Ltd Return on equity is 14.88% for FY-2025, which is below its 5-year historical median of 22.37%, indicating the business is making worse use of its shareholders capital.
Q.5 Cash conversion cycle of Thangamayil Jewellery Ltd?
Thangamayil Jewellery Ltd Cash conversion cycle is 116 days, in line with its 5-year historical median of 115 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover 2.43 2.61
ROE 14.88 22.37
ROCE 14.43 17.55
Cash Conversion Cycle 116 days 115 days
Q.6 Gross Profit margin of Thangamayil Jewellery Ltd?
Thangamayil Jewellery Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.7% for FY-2025, which is below its 5-year median of 3.9%, indicating decreasing margins.
Q.7 Operating Profit Margin of Thangamayil Jewellery Ltd?
Thangamayil Jewellery Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.46% for FY-2025, which is below its 5-year median of 5.42% indicating decreasing margins.
Q.8 Net Profit Margin of Thangamayil Jewellery Ltd?
Thangamayil Jewellery Ltd Net Profit Margin is 2.42% for FY-2025, is in line with with its 5-year median of 2.53%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin 3.7 3.9
Operating Profit Margin 4.46 5.42
Net Profit Margin 2.42 2.53
Q.9 Debt to Equity ratio of Thangamayil Jewellery Ltd?
Thangamayil Jewellery Ltd Debt-to-Equity ratio is 0.66, which is above with the industry average of 0.58, indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Thangamayil Jewellery Ltd?
Thangamayil Jewellery Ltd Debt to cash flow from operations is -1.7, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Thangamayil Jewellery Ltd?
Promoters hold 61.61% of the Thangamayil Jewellery Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Thangamayil Jewellery Ltd vs industry peers?
Thangamayil Jewellery Ltd revenue CAGR is 23.75%, compared to the industry median CAGR of 11.19%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth 28.3 11.2
Gross Profit Growth 1.7 14.9
Operating Profit Growth 3.3 17.5
Net Profit Growth -3.3 13.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover 2.43 1.44
ROE 14.88 7.96
ROCE 14.43 8.31
Cash Conversion Cycle (days) 116.49 132

Valuation & price assessment

Q.1 Stock return of Thangamayil Jewellery Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 45.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price
CAGR
45.3% 68% 98.8% 98%
Q.3 Valuation ratios of Thangamayil Jewellery Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 51.27 33.06 27.79
Price to Book 9.69 5.64 1.96
Price to Sales 1.75 0.98 1.27
EV to EBITDA 31.19 18.88 16.05

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