1. About the Company

Thangamayil Jewellery Limited (TMJL) is a leading jewellery retailer based in Tamil Nadu, India. The company specializes in gold, silver, diamond, and platinum ornaments, catering to a vast customer base. Established in 2000, TMJL has expanded significantly and capitalized on Tamil Nadu's high demand for gold, which accounts for nearly 40% of India's gold consumption. The company operates retail stores across multiple locations and has built a reputation for high-quality craftsmanship, ethical business practices, and adherence to regulatory standards.

2. Evolution and History

Thangamayil Jewellers began as a single store in Madurai and has grown into a robust chain of jewellery showrooms across Tamil Nadu. The company follows a strategic expansion model that includes opening new retail outlets and integrating manufacturing capabilities to design and craft jewellery in-house. This vertical integration ensures greater control over quality and customer preferences while reducing dependency on third-party suppliers.

3. Products and Segments

TMJL offers a diverse range of products under the following key categories:

• Gold Jewellery: Traditional and contemporary designs account for nearly 75% of the company’s revenue.

• Silver Jewellery & Articles: Includes silver ornaments, utensils, and gifting items.

• Diamond Jewellery: A growing segment catering to premium customers.

• Platinum Jewellery: Niche luxury products for select customers.

To appeal to a broader audience, the company continues to innovate in design and customization services, ensuring that it meets traditional and modern consumer preferences.

4. Revenue Mix

Thangamayil Jewellers derives a significant portion of its revenue from gold jewellery sales, reflecting the cultural preference for gold in Tamil Nadu. The revenue breakdown is as follows:

• Gold Jewellery: 75% of total revenue

• Silver and Other Metals: 15%

• Diamond & Platinum: 10%

The company's revenue streams are further strengthened by seasonal spikes in demand during festivals and weddings, reinforcing its growth potential.

5. Locations and Stores

Thangamayil operates multiple retail stores across Tamil Nadu, strategically located in key cities and towns. These stores cater to customers seeking traditional and contemporary jewellery collections. The company’s expansion plans aim to penetrate semi-urban and rural markets, where demand for gold jewellery remains strong. Thangamayil Jewellery Limited (TMJL) operates a robust network of retail stores across Tamil Nadu, India. As of March 2025, the company boasts a total of 59 showrooms, encompassing approximately 43,500 square feet of retail space.

The flagship store is located on Nethaji Road in Madurai, covering 11,416 square feet. Recent expansions include the opening of the 57th showroom in Hosur and the 58th in Melur. These strategic locations enhance TMJL's accessibility and market presence within the state.

6. How the Business Works

Thangamayil Jewellers follows an integrated retail and manufacturing model:

• Retail Sales: A well-established network of stores drives direct sales to consumers.

• In-house Manufacturing: The company operates its own production units, ensuring high-quality jewellery designs and cost efficiencies.

• Customization and Personalization: The company offers bespoke jewellery designs, a key differentiator in the market.

• Gold Savings Schemes: Attracts customers by allowing them to invest in gold through systematic payments, ensuring steady cash flows for TMJL.

7. Industry Trends

The jewellery industry in India is influenced by:

• Fluctuating Gold Prices: Impacting profitability and demand.

• Growing Digital Presence: E-commerce and online gold investments are increasing.

• Sustainability and Ethical Sourcing: Consumers are increasingly demanding responsibly sourced gold and diamonds.

• Government Regulations: Mandatory hallmarking and GST policies shape pricing and business strategies.

8. Government Regulations

The jewellery industry is heavily regulated in India. Key regulations include:

• Bureau of Indian Standards (BIS) Hallmarking: Ensuring jewellery purity.

• Goods and Services Tax (GST): Applied at a rate of 3% on gold and 5% on making charges.

• Import Duties on Gold: Directly influencing gold prices and consumer demand.

9. Price History Analysis

Thangamayil Jewellery Limited (TMJL) has exhibited a dynamic stock performance, reflecting its business growth and market conditions. Here's an in-depth analysis of its price history:

Stock Price Performance (as of March 27, 2025):

• Current Price: ₹1,848.10 per share.

• 52-Week Range: ₹1,124.86 (Low) to ₹2,567.50 (High).

• Market Capitalization: Approximately ₹5,172.01 crore.

• 1-Year CAGR Growth: 74.32%

• 3-Year CAGR Growth: 39.7%

• 5-Year CAGR Growth: 38.4%

Recent Trends:

• February 25, 2025: Shares hit a 20% upper circuit following ₹16 crore in opening-day sales at the new Chennai showroom.

• February 6, 2025: Reported standalone net sales of ₹1,131.64 crore for December 2024, a 26.49% year-over-year increase.

Historical Performance:

• March 14, 2025: Stock price was around ₹1,768.45.

• July 17, 2023: Issued a 1:1 bonus, doubling the number of shares held by investors.

Analysis:

TMJL's stock has demonstrated resilience and growth, influenced by strategic expansions, robust financial performance, and market sentiment. The 52-week high of ₹2,650.00 indicates strong investor confidence, while the 52-week low of ₹1,140.00 reflects periods of market consolidation. The 1:1 bonus issue in July 2023 enhanced liquidity and made the stock more accessible to investors.

Thangamayil Jewellery's stock price history showcases its evolving market position and responsiveness to both internal developments and external market dynamics. Investors should consider these factors alongside broader economic indicators when evaluating TMJL's stock performance.

The stock price of Thangamayil Jewellers has shown significant fluctuations due to market conditions and gold price variations. As of March 2025:

This growth reflects investor confidence in the company’s financial stability and expansion plans.

10. Financial Results Analysis

Key financial metrics for Q3 FY2024-25:

• Net Sales: ₹1,131.64 crore (26.49% YoY growth)

• Net Profit: ₹48.19 crore (72.11% YoY increase)

• EBITDA Margin: 8.2%

• Return on Equity (ROE): 16.5%

These results showcase TMJL’s strong operational efficiency and profitability.

11. Peer Comparison

Thangamayil competes with major jewellery retailers like Titan, Kalyan Jewellers, PC Jeweller, and P N Gadgil. A comparative analysis:

Despite a high PE ratio, TMJL’s steady revenue growth justifies its valuation.

12. Shareholding Pattern

As of Q4 FY2024-25:

Institutional interest indicates long-term growth potential.

13. SWOT Analysis

Strengths:

• Strong presence in Tamil Nadu.

• Integrated retail and manufacturing operations.

• Consistent revenue and profit growth.

Weaknesses:

• High dependence on gold jewellery sales.

• Vulnerability to gold price fluctuations.

Opportunities:

• Expansion into e-commerce and digital gold investments.

• Entry into new geographical markets.

Threats:

• Intense competition from large national players.

• Government policy changes affecting gold prices and taxation.

14. Conclusion

Thangamayil Jewellers is a well-established player in Tamil Nadu’s jewellery market. With a strong retail presence, in-house manufacturing, and steady revenue growth, the company remains a key competitor in the Indian jewellery industry. While it faces challenges from gold price volatility and competition, TMJL’s strategic expansion and focus on quality make it a promising investment for the future. Strengthening digital channels and diversifying product offerings will be crucial to sustaining growth in the coming years.