Thanga Mayil Jewellery Limited (TMJL) is a leading jewellery retailer in India. The company was founded in 1995 and is headquartered in Chennai. TMJL has a network of over 100 stores across India.
The shares of TMJL have been on a tear in the last 5 trading sessions. The stock has jumped 55% from its low of Rs. 250 on July 20 to its high of Rs. 387 on July 25. This surge in the share price has been attributed to a number of factors, including:
- Strong Q1 results: TMJL reported strong financial results for the first quarter of the financial year 2023. The company’s revenue grew by 25% YoY, and its net profit grew by 30% YoY.
- Positive outlook: Analysts are positive on the outlook for TMJL. They believe that the company’s strong brand, its focus on the premium segment, and its expansion plans will help it to grow its business in the coming years.
- Low valuations: TMJL’s shares are currently trading at a P/E ratio of just 15. This is significantly lower than the P/E ratio of its peers. This has led some investors to believe that the shares are undervalued.
The surge in the share price of TMJL has been welcomed by investors. The stock is now trading near its all-time high. However, it is important to note that the stock is still relatively illiquid. This means that there is a limited number of shares available to trade. As a result, the share price could be volatile in the near term.
Overall, the surge in the share price of TMJL is a positive development for the company. The strong financial results, the positive outlook, and the low valuations have all contributed to the rise in the share price. However, investors should be aware of the illiquidity of the stock before investing.
Here are some additional news about TMJL:
- TMJL plans to open 100 new stores in the next 3 years: The company plans to open 100 new stores in the next 3 years, taking its total store count to 200.
- TMJL launches new brand, “Mayil Jewellery”: The company has launched a new brand, “Mayil Jewellery”, which is targeted at the mass market.
- TMJL signs a partnership with Amazon India: The company has signed a partnership with Amazon India to sell its products on the e-commerce platform.
TMJL is a well-established jewellery retailer with a strong brand and a positive outlook. The recent surge in the share price is a positive development for the company. However, investors should be aware of the illiquidity of the stock before investing.