Heavy Buying Alert: Small-cap gems & jewellery stock was locked in 10 per cent upper circuit on May 14

The stock’s 52-week high is Rs 382.20 and its 52-week low is Rs 170 with a market cap of Rs 1,187.73 crore.  

Today, the shares of Manoj Vaibhav Gems N Jewellers Ltd were locked in a 10 per cent upper circuit to Rs 243.15 per share from its previous closing of Rs 221.25 with an intraday high of Rs 243.15 and an intraday low of Rs 225.35. The stock’s 52-week high is Rs 382.20 and its 52-week low is Rs 170 with a market cap of Rs 1,187.73 crore.  

ICRA upgraded Manoj Vaibhav Gems ‘N’ Jewellers Limited's long-term credit rating for their Rs 450 crore bank facilities to [ICRA]BBB+ (Stable) and assigned a new short-term rating of [ICRA]A2. The ratings are based on the company's improved financial performance and outlook for the organized jewellery retail sector. However, the ratings are specific to the current terms and size of the bank facilities, and any changes to these terms or size would require a new rating review from ICRA. The company is advised to keep ICRA informed of any such changes before using the facilities.

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.  

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 In India, gold jewellery transcends mere decoration, holding cultural significance as a cherished tradition for wealth accumulation and a common celebratory gift (Shagun), with the global market projected to balloon to USD 105 billion by 2028, mirroring a rise in quantity from 4.42 kilotons in 2024 to an estimated 6.32 kilotons by 2029.

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.

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 8.04 per cent, DIIs own 1.23 per cent and the public owns 16.46 per cent stake in the company as of March 2024. 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.