Strong Momentum Drives New High
The stock of Khazanchi Jewellers has demonstrated consistent upward movement, trading above all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day marks. This broad-based technical strength has supported the stock’s advance to its highest price in over a year, with the latest peak at Rs.753 representing both a 52-week and an all-time high.
Over the last two trading sessions, Khazanchi Jewellers has recorded a cumulative return of 0.9%, with today’s performance outpacing its sector by 1.66%. The stock’s trading range remained relatively narrow at Rs.6, indicating a controlled and steady price movement rather than volatile swings.
Market Context and Sector Performance
The broader market environment has been supportive, with the Sensex opening flat and gradually moving to trade at 84,410.95 points, a marginal increase of 0.02%. The benchmark index remains approximately 2.07% below its own 52-week high of 86,159.02, maintaining a generally bullish technical posture as it trades above its 50-day moving average, which itself is positioned above the 200-day moving average.
Within this context, mid-cap stocks have shown leadership, with the BSE Mid Cap index gaining 0.05% today. Khazanchi Jewellers, classified within the Gems, Jewellery And Watches sector, has outperformed both its sector and the broader market indices over the past year.
This week's disclosed pick, a Large Cap from NBFC, comes with precise Target Price and analysis. Check if you're positioned right for this opportunity!
- - Precise target price set
- - Weekly selection live
- - Position check opportunity
Year-on-Year Performance Highlights
Khazanchi Jewellers has recorded a one-year return of 16.95%, significantly outpacing the Sensex’s 3.54% return over the same period. The stock’s 52-week low was Rs.525.3, indicating a substantial price appreciation over the last twelve months.
Financially, the company has shown robust growth in key metrics. Net sales have expanded at an annual rate of 90.30%, while operating profit has grown at 105.40%. Net profit has also seen a rise of 55.45%, with the company reporting positive results for two consecutive quarters. The latest quarterly figures reveal a Profit Before Tax (PBT) excluding other income of Rs.31.20 crores, reflecting an 83.8% growth compared to the previous four-quarter average. Profit After Tax (PAT) for the quarter stood at Rs.23.55 crores, marking an 85.3% increase over the same comparative period. Additionally, the company’s Profit Before Depreciation, Interest and Tax (PBDIT) reached a quarterly high of Rs.32.31 crores.
Financial Strength and Valuation Metrics
Khazanchi Jewellers maintains a low Debt to EBITDA ratio of 1.14 times, indicating a strong capacity to service its debt obligations. The company’s Return on Capital Employed (ROCE) stands at 20%, while the Enterprise Value to Capital Employed ratio is 5.9, suggesting a relatively high valuation in relation to its capital base. Despite the company’s size and performance, domestic mutual funds currently hold no stake in Khazanchi Jewellers, which may reflect a cautious stance regarding valuation or business fundamentals.
Curious about Khazanchi Jewellers from Gems, Jewellery And Watches? Get the complete picture with our detailed research report covering fundamentals, technicals, peer analysis, and everything you need to decide!
- - Detailed research coverage
- - Technical + fundamental view
- - Decision-ready insights
Technical Indicators and Market Positioning
The stock’s position above all major moving averages signals sustained investor confidence and technical strength. Trading above the 200-day moving average is often viewed as a long-term bullish indicator, while the 50-day moving average crossing above the 200-day average in the broader market context supports a positive market trend. Khazanchi Jewellers’ ability to maintain its price above these levels suggests resilience and steady demand within its sector.
Furthermore, the stock’s narrow trading range during its recent gains points to measured buying interest rather than speculative volatility, which can be a sign of healthy price discovery and market acceptance of the current valuation.
Comparative Market Returns
Over the past year, Khazanchi Jewellers has delivered returns that surpass the broader BSE500 index, which has recorded a marginal 0.07% return. This outperformance highlights the company’s relative strength within the mid-cap segment and the Gems, Jewellery And Watches sector. The company’s growth in profits by 64% over the same period further supports the stock’s price appreciation, with a PEG ratio of 0.6 indicating a valuation that is aligned with its earnings growth trajectory.
Summary of Key Metrics
To summarise, Khazanchi Jewellers’ new 52-week high of Rs.753 is supported by strong financial growth, solid technical indicators, and a market environment that favours mid-cap stocks. The company’s ability to generate healthy returns on capital and maintain a low debt burden adds to its financial stability. While valuation metrics suggest a premium, the stock’s performance relative to the market and sector benchmarks reflects its current standing as a notable player in the Gems, Jewellery And Watches industry.
Only ₹14,999 - Get MojoOne + Stock of the Week for 2 Years PLUS 6 Months FREE Claim 83% OFF →
