Diwali Stock Alert: Heavy buying witnessed in this multibagger gems & jewellery stock; hit 52-week high!

The stock was listed on BSE & NSE on October 03, 2023 at Rs 215.5 per share and till today’s closing the stock is up by 45 per cent. 

Today, the benchmark indices ended the trading session in red with BSE Sensex Index down by 0.22 per cent and NSE Nifty-50 Index down 0.25 per cent. In the boarder market, the indices were trading mixed with BSE Mid-Cap Index up 0.06 per cent and BSE Small-Cap Index down 0.26 per cent.

Thought the market was trading mixed, this small-cap gems & jewellery stock gained 8.12 per cent and made a new 52-week high of Rs 322.10 per share from its previous closing of Rs 297.90. At the closing bell, shares of the company were trading at Rs 312.40 per share, up 4.87 per cent with a spurt in volume by more than 1.01 times. The stock was listed on BSE & NSE on October 03, 2023 at Rs 215.5 per share and as of today’s closing the stock is up by 45 per cent. 

The stock name is Manoj Vaibhav Gems N Jewellers Ltd.

Manoj Vaibhav Gems N Jewellers Ltd is a prominent jewelry retailer in South India, specifically in Andhra Pradesh and Telangana, with 13 showrooms. They specialize in a wide range of jewelry, including Gold, Diamond, Gems, Platinum, and Silver, offering diverse products like bangles, lockets, chains, rings, and more. The company is known for its focus on relationships, quality, transparency, and excellent customer service. Their marketing strategy involves actively participating in exhibitions to understand and connect with their target audience.

Rural areas make up a large part of the jewelry market in India, and the steady demand for gold in these areas creates a lot of opportunities for growth. This company has 77 per cent of its retail stores in Tier 2 and Tier 3 cities, which are cities that are smaller than major metropolitan areas. These stores are specifically designed to meet the demand for gold in semi-urban and rural areas of Andhra Pradesh and Telangana. The company has a market cap of over Rs 1,500 crore.

In terms of market share, the company currently has 5 per cent of the total jewellery market in Andhra Pradesh and Telangana, and it has an impressive 14 per cent share of the organized jewellery market in these two states. The organized jewellery market is the part of the jewellery market that is run by large companies that have a lot of stores.

The company was one of the first companies to start selling jewellery in the organized retail market in Andhra Pradesh, and it is still committed to its strategy of expanding into new markets in the region. It is currently expanding its presence within Andhra Pradesh, with new stores strategically located to meet the needs of local customers.

When we look at the company's financial performance, we see that it has had strong revenue and net profit growth in recent years. It also has an impressive return on equity (ROE) of 23 per cent for the financial year 2023, which shows that it is able to generate good returns for its investors.

In summary, the company is a well-established jewellery retailer with a strong presence in rural and semi-urban areas of Andhra Pradesh and Telangana. It has a good track record of financial performance. Investors should keep an eye on this small-cap stock.

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