Current Rating and Its Significance
MarketsMOJO currently assigns a 'Buy' rating to Thangamayil Jewellery Ltd, reflecting a positive outlook on the stock's potential for investors. This rating indicates that the stock is expected to deliver returns above the market average, supported by strong fundamentals and favourable market conditions. The rating was last revised on 18 Nov 2025, when the Mojo Score adjusted from 84 to 78, signalling a slight moderation in enthusiasm but maintaining a constructive stance.
Here’s How the Stock Looks Today
As of 29 December 2025, Thangamayil Jewellery Ltd continues to demonstrate robust financial health and market performance. The company operates within the Gems, Jewellery And Watches sector and is classified as a smallcap stock. Despite a minor day change of -0.37%, the stock has shown remarkable resilience and growth over longer periods.
Quality Assessment
The stock holds a 'good' quality grade, underpinned by high management efficiency and consistent operational performance. The company boasts a return on capital employed (ROCE) of 16.15%, which is a strong indicator of effective capital utilisation. This level of efficiency suggests that the management team is adept at generating profits from the capital invested, a key factor for sustainable growth.
Valuation Perspective
Currently, the valuation grade is marked as 'expensive'. This reflects that the stock trades at a premium relative to its earnings and book value, which may be attributed to its strong growth prospects and investor demand. While the premium valuation warrants caution, it also signals market confidence in the company’s future earnings potential. Investors should weigh this factor carefully against the company’s growth trajectory and sector dynamics.
Financial Trend and Performance
The financial grade is rated as 'very positive', supported by impressive growth metrics. As of 29 December 2025, the company’s net sales have grown at an annual rate of 35.44%, while operating profit has increased by 21.61%. Net profit growth stands at 28%, reflecting strong bottom-line expansion. The company has declared positive results for four consecutive quarters, with the latest quarter showing a profit before tax (PBT) excluding other income of ₹78.39 crores, a growth of 112.1% compared to the previous four-quarter average.
Additionally, the company’s dividend per share (DPS) has reached a peak of ₹12.50 annually, signalling a shareholder-friendly approach. Net sales for the latest quarter hit a record ₹1,710.90 crores, underscoring robust demand and operational scale.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Technical Outlook
The technical grade for Thangamayil Jewellery Ltd is 'bullish', indicating positive momentum in the stock price and favourable chart patterns. This technical strength complements the fundamental backdrop, suggesting that the stock is well-positioned for further gains in the near term. Investors often consider such technical signals as confirmation of underlying business strength and market sentiment.
Stock Returns and Market Performance
As of 29 December 2025, the stock has delivered impressive returns across multiple timeframes. It has gained 68.56% over the past year and 67.96% year-to-date, significantly outperforming the broader BSE500 index in each of the last three annual periods. Over the last six months, the stock surged by 71.40%, and over three months, it rose by 60.09%. These returns highlight the stock’s strong growth trajectory and investor appeal.
Institutional Investor Participation
Institutional investors have increased their stake by 0.54% over the previous quarter, now collectively holding 19.86% of the company. This growing institutional interest is a positive signal, as these investors typically conduct thorough fundamental analysis and have the resources to assess long-term value. Their participation often lends stability and credibility to the stock’s prospects.
Implications for Investors
The 'Buy' rating from MarketsMOJO suggests that Thangamayil Jewellery Ltd is a compelling investment opportunity for those seeking exposure to the gems and jewellery sector. The combination of strong quality metrics, positive financial trends, bullish technicals, and institutional backing provides a solid foundation for potential capital appreciation. However, investors should remain mindful of the stock’s premium valuation and monitor market conditions closely.
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Summary
In summary, Thangamayil Jewellery Ltd’s current 'Buy' rating reflects a balanced view of its strengths and valuation considerations. The company’s excellent management efficiency, strong financial growth, and positive technical outlook make it an attractive proposition for investors looking to capitalise on the gems and jewellery sector’s potential. While the stock trades at a premium, its consistent returns and institutional support provide reassurance of its long-term value.
Investors should consider this rating as a guide to the stock’s current investment merit, supported by comprehensive analysis as of 29 December 2025. Continuous monitoring of quarterly results and market developments will be essential to assess ongoing suitability within a diversified portfolio.
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