Thangamayil Jewellery Limited

Consumer Cyclical — Luxury Goods · NSE

₹5,091.00+₹300.00 (+6.26%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Thangamayil Jewellery Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Thangamayil Jewellery Limited operates a chain of retail jewelry stores in India. The company offers gold, diamond, silver, precious stones, and platinum jewelries, as well as silver articles and gold coins.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees3,450

Annual revenue₹8,499 Cr

How does it make money?

Turns over ₹8,499 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 3,450 employees supports ₹2.46 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin6.7%

Net margin4.1%

Revenue / employee₹2.46 Cr

Who are its competitors?

The closest listed comparisons in its industry are TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 34.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 24.8% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE34.2%

ROE24.8%

Peer median ROE25.9%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 24.3% and earnings to grow about 34.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+24.3%

Est. earnings growth+34.9%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +170% while net margin moved +64% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+170%

Margin effect+64%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 40.5x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 48.1x
✗ P/B of 11.18x is a steep premium to book

Quality vs. Valuation

Company Quality

75/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

57/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

40.5x

3Y Median

48.1x

40 monthly readings · mean 59.2x · range 41.5x–152.3x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 16% below its 3y median of 48.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 42% below the peer median of 69.2x.

vs. its own history

Fair

48.1x median over 40 months · -16%

vs. sector peers

Cheap

69.2x median of 4 peers · -42%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

40.5x

P/B

11.18x

EV/EBITDA

29.1x

PEG

0.63

Dividend Yield

0.35%

What's Good / What's Bad

🟢 What's Going Well5

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 20.5% to 24.8%.
Return on capital is rising
ROCE has improved from 25.4% to 34.2%.
High return on capital employed
ROCE of 34.2% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 60% over 3 years — worth checking what it funded.
Receivables growing faster than sales
Receivables are up 653% against revenue growth of 170% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 201% against revenue growth of 170% — stock may not be moving.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 60% over 3 years, from ₹571 Cr to ₹913 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 653% against revenue up 170% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 201% against revenue up 170% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 34.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 42% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 653% against revenue up 170%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 29% a year✓ 39.2% CAGR
Latest reported year was 71.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 6.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹248 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 31%✓ 34.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹15,824 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

40.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

11.18x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹125.8

Profitable

Profitable on a per-share basis

ROE

24.8%

Strong

Strong capital efficiency

ROCE

34.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.64x

Moderate

Moderate leverage

Revenue Growth (YoY)

71.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

86.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.35%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹248 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹5,091

P/E (Forward)

27.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

4.9%

Weak

Thin margins leave little room for error

Net Margin

4.1%

Average

Average bottom-line conversion

Current Ratio

1.54

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.59

Defensive

Steadier than the market

52W Range Position

57%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4966.0 / 5167.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

48.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,153 Cr	₹3,827 Cr	₹4,911 Cr	₹8,499 Cr	+39.2%
EBITDA	₹171 Cr	₹214 Cr	₹221 Cr	₹571 Cr	+49.5%
EBITDA Margin	5.4%	5.6%	4.5%	6.7%	—
PAT (Net Profit)	₹80 Cr	₹123 Cr	₹119 Cr	₹352 Cr	+64.0%
EPS	₹28.16	₹43.93	₹42	₹113.14	+59.0%
ROE	20.5%	25.0%	10.8%	24.8%	—
ROCE	25.4%	31.1%	16.2%	34.2%	—
Total Debt	₹571 Cr	₹532 Cr	₹797 Cr	₹913 Cr	+16.9%
Free Cash Flow	-₹21 Cr	₹293 Cr	-₹482 Cr	₹248 Cr	—

🟢 Revenue has grown at 39.2% a year over 3 years.

🟢 EBITDA has grown at 49.5% a year over 3 years.

🟢 EBITDA Margin has risen from 5.4% to 6.7% over 3 years (+1.3 pts).

🟢 PAT (Net Profit) has grown at 64.0% a year over 3 years.

🟢 EPS has grown at 59.0% a year over 3 years.

🟢 ROE has risen from 20.5% to 24.8% over 3 years (+4.3 pts).

🟢 ROCE has risen from 25.4% to 34.2% over 3 years (+8.7 pts).

🔴 Total Debt has grown at 16.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹21 Cr to ₹248 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,820 Cr

Total Liabilities

₹2,404 Cr

Total Debt

₹913 Cr

Cash & Equivalents

₹124 Cr

Operating Cash Flow

₹322 Cr

Capex

-₹74 Cr

Shareholding (proxy)

Institutional Holding

20.2%

Insider Holding

63.7%

Corporate Actions

Dividend Rate

₹18

Ex-Dividend Date

22 Jul 2026

Analyst Consensus

Recommendations

2 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹6,543.33

+28.5% vs CMP

Target Range

₹6,314 – ₹6,856

Peer Comparison

Company	P/E	ROE
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

3 mixed3 general

Gold Stocks With Strong Fundamentals: Top Picks to Consider

Univest, 18 Oct

THANGAMAYL Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Senco, PC Jeweller zoom up to 17%; why are gold-related stocks dazzling?

Business Standard, 16 Oct

Jewellery stocks ahead of festive season: Can Q2 deliver sustained growth amid rising rates, bond yields?

The Economic Times, 14 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Here's Why We Think Thangamayil Jewellery (NSE:THANGAMAYL) Might Deserve Your Attention Today

Simply Wall Street, 01 Jun

Thangamayil Jewellery shares crash 32% in a week. What should investors do?

The Economic Times, 03 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate12.4/20

🟢Financial HealthStrong14.6/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong10.6/15

🔴ValuationDemanding5.3/15

🟡RiskModerate4.9/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 29% a year39.2% CAGR
✓EBITDA margin holds above 5%6.7%
✓Free cash flow remains positive₹248 Cr
✓Debt / EBITDA stays below 2x1.6x
✓ROCE stays above 31%34.2%