74.28 per cent promoters stake: Micro-cap gems & jewellery stock shines in shining gold on major expansion to 15 stores in South India

In India, gold jewellery is not merely a decorative item, but a cherished tradition with a long history of use for wealth accumulation.

In India, gold jewellery is not merely a decorative item, but a cherished tradition with a long history of use for wealth accumulation. Gold is given as a token of Shagun in the majority of Indian celebrations. The global gold market is expected to surge in value, reaching approx. USD 105 billion by 2028, more than double its size of USD 47.06 billion in 2021, with a projected annual growth rate of 12.1 per cent. This upswing is mirrored in the gold market's quantity, which is estimated at 4.42 kilotons in 2024 and is anticipated to reach 6.32 kilotons by 2029, reflecting a growth rate of 7.38 per cent/year.

Manoj Vaibhav Gems 'N' Jewellers, a national brand with a strong presence in South India, has grown from a regional player to a dominant force by specializing in high-quality gold, diamond and other precious metal jewellery. They cater to a loyal customer base through a network of stores strategically placed in Tier 2 and 3 cities, and offer a wide range of daily wear, festive wear, bridal, antique and temple jewellery online, along with expert advice to help you style your look and find the perfect piece.

Manoj Vaibhav Gems N Jewellers Ltd, a major player in the organized jewellery market, is expanding its physical footprint with 2 new stores launched on March 24, 2024, bringing their total store count to 15 (including two franchise stores) and is well-positioned to benefit from the growing middle class and online jewellery market boom.

According to its Quarterly Results (Q3FY24), the company reported net sales of Rs 475 crore, operating profit of Rs 34 crore and net profit of Rs 19 crore. In its nine-month results (9MFY24), the company reported net sales of Rs 1,603 crore, operating profit of Rs 113 crore and net profit of Rs 60 crore.

Today, the shares of Manoj Vaibhav Gems N Jewellers Ltd surged 9 per cent to Rs 285.25 per share from its previous closing of Rs 261.85 with an intraday high of Rs 285.25 and an intraday low of Rs 266.55. The stock’s 52-week high is Rs 382 and its 52-week low is Rs 170 with a market cap of over Rs 1,300 crore.  

Demonstrating notable financial strength, the company has experienced substantial growth in both revenue and net profit in recent years, with an impressive return on equity (ROE) reaching 23 per cent in the fiscal year 2023, showcasing its capacity to yield significant returns for shareholders.

The company’s majority of the stake is owned by the promoters of the company i.e., 74.28 per cent while FIIs own 8.64 per cent, DIIs own 1.66 per cent and the public owns 15.42 per cent stake in the company. Manoj Vaibhav Gems N Jewellers Ltd stands as a firmly established jewellery retailer maintaining a strong foothold in the rural and semi-urban regions of Andhra Pradesh and Telangana.

Disclaimer: The article is for informational purposes only and not investment advice.