Khazanchi Jewellers Hits New 52-Week High of Rs.766 Marking Significant Milestone

Strong Market Momentum Drives New High

Khazanchi Jewellers, a key player in the Gems, Jewellery And Watches industry, recorded its highest price in the past year at Rs.766. This peak comes after a series of gains that extended over nine consecutive trading sessions, signalling robust investor confidence and positive market dynamics. Despite a slight pullback today with a marginal decline of 0.05%, the stock remains well above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained upward trend.

The stock’s 52-week low stands at Rs.525.3, highlighting a significant price range and the strength of the recent rally. Over the last twelve months, Khazanchi Jewellers has delivered a return of 21.56%, substantially outperforming the broader Sensex index, which recorded an 8.82% return over the same period. This outperformance emphasises the company’s resilience and growth within a competitive sector.

Sector and Market Context

The broader market environment has been mixed, with the Sensex opening higher by 122.62 points but retreating to close 220.88 points lower at 85,469.22, representing a 0.11% decline. The Sensex remains close to its own 52-week high of 86,159.02, currently just 0.81% away. Notably, the Sensex is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, suggesting a generally bullish market trend despite short-term fluctuations.

Small-cap stocks have been leading the market, with the BSE Small Cap index gaining 0.28% today. Khazanchi Jewellers, while not classified as a small cap, has demonstrated market-beating performance within its sector, contributing to the overall positive sentiment in the gems and jewellery space.

Financial Performance Underpinning the Rally

Khazanchi Jewellers’ recent financial results have contributed to the positive market sentiment. The company’s net sales have expanded at an annual rate of 90.30%, while operating profit has grown at 105.40%, reflecting strong operational performance. Net profit has shown a 55.45% increase, with the company reporting outstanding results in the quarter ending September 2025.

Quarterly figures reveal a profit before tax excluding other income (PBT less OI) of Rs.31.20 crores, representing 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% rise over the same period. Additionally, the company’s profit before depreciation, interest, and tax (PBDIT) reached a high of Rs.32.31 crores in the quarter, underscoring operational strength.

The company’s ability to service debt remains solid, with a low Debt to EBITDA ratio of 1.14 times, indicating manageable leverage levels. Return on capital employed (ROCE) is reported at 20%, reflecting efficient utilisation of capital resources.

Valuation and Market Position

Khazanchi Jewellers’ enterprise value to capital employed ratio stands at 6.1, suggesting a premium valuation relative to its capital base. The price-to-earnings-to-growth (PEG) ratio is 0.7, indicating a valuation that considers the company’s profit growth trajectory. Despite the company’s size and market presence, domestic mutual funds currently hold no stake in Khazanchi Jewellers, which may reflect a cautious stance or valuation considerations within institutional circles.

Technical Indicators and Trend Analysis

The stock’s position above all major moving averages signals a strong technical foundation. Trading above the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages typically indicates sustained buying interest and a positive trend. However, after nine consecutive sessions of gains, the stock experienced a slight decline today, which may represent a short-term consolidation phase rather than a reversal of the overall trend.

Such technical patterns often suggest that the stock is consolidating gains before potentially resuming its upward trajectory, though this article refrains from speculating on future price movements.

Comparative Performance Within the Sector

Within the Gems, Jewellery And Watches sector, Khazanchi Jewellers’ performance stands out. The sector has witnessed varied movements, but the company’s ability to reach a new 52-week high highlights its relative strength. The stock’s market capitalisation grade is moderate, reflecting its position within the industry landscape.

While the stock underperformed its sector by 0.36% today, its year-on-year returns and financial metrics demonstrate a solid foundation that has supported the recent rally.

Summary of Key Metrics

To summarise, Khazanchi Jewellers’ key data points include:

• New 52-week and all-time high price of Rs.766


• One-year return of 21.56%, outperforming Sensex’s 8.82%


• Net sales growth at an annual rate of 90.30%


• Operating profit growth at 105.40% annually


• Net profit growth of 55.45%


• Low Debt to EBITDA ratio of 1.14 times


• ROCE at 20%


• Enterprise value to capital employed ratio of 6.1


• PEG ratio of 0.7

These figures collectively illustrate the company’s robust financial health and market performance, which have contributed to the stock’s recent milestone.

Market Environment and Outlook

The broader market’s mixed performance, with the Sensex retreating after an initial positive opening, contrasts with Khazanchi Jewellers’ achievement of a new high. This divergence highlights the stock’s relative strength amid fluctuating market conditions. The small-cap segment’s leadership in the market today further emphasises the dynamic nature of the current investment landscape.

While the stock’s recent pullback after nine days of gains may indicate a pause in momentum, its position above key technical levels suggests that the underlying trend remains intact.

Conclusion

Khazanchi Jewellers’ attainment of a new 52-week high at Rs.766 marks a significant milestone in its market journey. Supported by strong financial results, favourable technical indicators, and a solid sectoral position, the stock’s performance over the past year has outpaced broader market indices. This achievement reflects the company’s capacity to navigate a competitive industry and maintain growth momentum amid varied market conditions.

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