Low PE jewellery stock surges 7.25 per cent in just 1 day; Do you own it?
The stock is up by 77.3 per cent from its 52-week low of Rs 170 per share.
The shares of Manoj Vaibhav Gems N Jewellers Ltd witnessed a remarkable surge on BSE today. The stock price surged 7.25 per cent, reaching an intraday high of Rs 301.45 per share from its previous closing of Rs 281.05 per share on BSE.
The stock’s 52-week high is Rs 382.2 and its 52-week low is Rs 170 with a market cap of over Rs 1,400 crore. The stock is up by 77.3 per cent from its 52-week low of Rs 170 per share. The company has not made any significant announcements of late. Hence, the rally in the share price could be driven purely by the market forces.
Earlier, 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 its 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.
Manoj Vaibhav Gems 'N' Jewellers is a prominent national jewellery brand with a strong presence in South India. The company has successfully transitioned from a regional player to a dominant force by specializing in high-quality gold, diamond and other precious metal jewellery. Catering to a loyal customer base, they operate a network of strategically located stores in Tier 2 and 3 cities. Additionally, their online platform offers a diverse range of jewellery options, including daily wear, festive wear, bridal, antique and temple styles. To enhance the customer experience, they provide expert advice on styling and selecting the perfect pieces.
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According to its Quarterly Results, the net sales increased by 6 per cent to Rs 539 crore and net profit increased by 16 per cent to Rs 22 crore in Q1FY25 compared to Q1FY24. In its annual results, the net sales increased by 6 per cent to Rs 2,149.67 crore and net profit increased by 13 per cent to Rs 80.93 crore in FY24 compared to FY23.
As of June 2024, the company's majority stake is owned by its promoters, holding 74.28 per cent. Foreign Institutional Investors (FIIs) own 7.96 per cent, Domestic Institutional Investors (DIIs) own 1.23 per cent, and the public holds 16.54 per cent. The company's shares have a PE of 17x, while the industry average is 38x. This indicates that Manoj Vaibhav Gems 'N' Jewellers is relatively undervalued. Furthermore, the company's ROE of 17 per cent and an ROCE of 16 per cent demonstrate its efficient use of capital and strong financial performance. With a solid foundation in the rural and semi-urban regions of Andhra Pradesh and Telangana, Manoj Vaibhav Gems 'N' Jewellers remains a well-established and reputable jewellery retailer.
Disclaimer: The article is for informational purposes only and not investment advice.