67.65 per cent returns from its 52-week low: Low PE gems & jewellery stock rockets 19 per cent from intraday low with a spurt in volume by more than 3 times!

Kiran Shroff
/ Categories: Trending, Mindshare
67.65 per cent returns from its 52-week low: Low PE gems & jewellery stock rockets 19 per cent from intraday low with a spurt in volume by more than 3 times!

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 1,300 crore.

The shares of Manoj Vaibhav Gems N Jewellers Ltd witnessed a remarkable surge on BSE today, emerging as one of the Top Gainers. The stock price soared by 19 per cent, reaching an intraday high of Rs 285 per share from its intraday low of Rs 239.45 per share. This significant increase was accompanied by a more than threefold jump in trading volume. Notably, the stock price currently sits above both its 50-day moving average (DMA) of 241.86 and its 200-day DMA of 248.03, indicating a positive technical outlook.

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 1,300 crore. The stock is up by 67.65 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.

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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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 Price-to-Earnings (PE) ratio of 16, while the industry average is 37. This indicates that Manoj Vaibhav Gems 'N' Jewellers is relatively undervalued. Furthermore, the company's Return on Equity (ROE) of 17 per cent and Return on Capital Employed (ROCE) of 16 per cent demonstrates 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.

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.

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.

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

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