54 per cent returns from its 52-week low: Low PE gems & jewellery stock gains over 5 per cent today; Complete details inside!

The shares of the company have a PE of 14x whereas the industry PE is 28x with an ROE of 17 per cent and an ROCE of 16 per cent.

The Indian government's budget unveiled positive changes for the gems and jewellery sector, with a significant reduction in customs duty on precious metals like gold, silver, and platinum (6 per cent and 6.4 per cent respectively). This move is expected to decrease retail jewellery prices, potentially driving up consumer demand and boosting domestic value addition.

Additionally, the complete removal of duties on 25 essential jewellery-making minerals, streamlined export-import processes, and support for the lab-grown diamond sector all contribute to a bright outlook for the industry. With a projected growth to reach USD 100 billion by 2027, these budget announcements are likely to accelerate this expansion.

Today, the shares of Manoj Vaibhav Gems N Jewellers Ltd surged over 5 per cent to an intraday high of Rs 254.25 per share from its previous closing of Rs 219.45. The stock’s 52-week high is Rs 382 and its 52-week low is Rs 165 with a market cap of over Rs 1,200 crore. The stock is up by 54 per cent from its 52-week low of Rs 170 per share. The shares of the company saw a spurt in volume by more than 2 times on BSE.

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.

According to its Quarterly Results, the net sales increased by 6 per cent to Rs 546.45 crore and net profit increased by 38 per cent to Rs 20.57 crore in Q4FY24 compared to Q4FY23. 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.

The company’s majority of the stake is owned by the promoters of the company i.e., 74.28 per cent while FIIs own 7.96 per cent, DIIs own 1.23 per cent and the public owns 16.54 per cent stake in the company as of June 2024. The shares of the company have a PE of 14x whereas the industry PE is 28x with an ROE of 17 per cent and an ROCE of 16 per cent. 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. 

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