Strong Momentum Drives Stock to New Heights
Khazanchi Jewellers has demonstrated consistent upward movement over the past four trading sessions, accumulating a return of 1.38% during this period. The stock’s performance today outpaced its sector peers by 0.53%, signalling relative strength within the Gems, Jewellery And Watches industry. Trading above all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — the stock’s technical positioning supports the current bullish trend.
Market Context and Sector Performance
While the broader market, represented by the Sensex, opened flat and later declined by 0.33% to 85,432.77 points, Khazanchi Jewellers maintained its upward trajectory. The Sensex remains close to its own 52-week high, just 0.85% shy of 86,159.02, and is trading above its 50-day moving average, which itself is positioned above the 200-day average, indicating a generally positive market backdrop despite the day's slight dip.
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Financial Performance Underpinning the Rally
Khazanchi Jewellers’ financial metrics reveal robust growth trends that have likely contributed to the stock’s positive momentum. Over the past year, net sales have expanded at an annual rate of 90.30%, while operating profit has grown at 105.40%. Net profit has also shown a substantial rise of 55.45%, with the company reporting strong results in the most recent quarter.
Quarterly figures further highlight this strength: Profit Before Tax excluding other income reached Rs.31.20 crore, reflecting an 83.8% increase compared to the previous four-quarter average. Profit After Tax stood at Rs.23.55 crore, marking an 85.3% rise over the same period. Additionally, the highest quarterly PBDIT recorded was Rs.32.31 crore, underscoring operational efficiency.
Market-Beating Returns and Valuation Metrics
Over the last twelve months, Khazanchi Jewellers has delivered a return of 13.64%, significantly outpacing the Sensex’s 4.57% and the broader BSE500 index’s 1.42%. This performance reflects the company’s ability to generate value beyond general market trends. The company’s return on capital employed (ROCE) stands at 20%, indicating effective utilisation of capital resources.
However, valuation metrics suggest a relatively elevated enterprise value to capital employed ratio of 5.9 times. The price-to-earnings-to-growth (PEG) ratio is 0.6, which may indicate a valuation that factors in the company’s profit growth of 64% over the past year.
Shareholding and Market Participation
Despite the company’s size and performance, domestic mutual funds currently hold no stake in Khazanchi Jewellers. This absence of mutual fund participation could reflect a cautious stance or a preference for further evaluation at prevailing price levels. The company’s low debt to EBITDA ratio of 1.14 times highlights a strong capacity to service debt, which supports financial stability.
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Historical Price Range and Technical Outlook
The stock’s 52-week low price was Rs.525.30, establishing a wide trading range that has culminated in the recent peak of Rs.750. This new high represents a significant appreciation from the low point, reflecting sustained buying interest and positive market sentiment. The stock’s position above all major moving averages further supports the technical strength observed in recent sessions.
Summary of Key Metrics
Khazanchi Jewellers’ recent performance is characterised by:
- New 52-week and all-time high price of Rs.750
- Four consecutive days of gains with a cumulative return of 1.38%
- Outperformance relative to sector peers by 0.53% on the latest trading day
- Net sales and operating profit growth exceeding 90% annually
- Strong quarterly profit growth with PBT and PAT rising over 80% compared to prior averages
- Market returns of 13.64% over the past year, surpassing broader indices
- Low debt to EBITDA ratio of 1.14 times, indicating financial prudence
These factors collectively illustrate the company’s robust financial health and market positioning, which have contributed to the stock’s recent milestone achievement.
Conclusion
Khazanchi Jewellers’ attainment of a new 52-week high at Rs.750 marks a noteworthy event within the Gems, Jewellery And Watches sector. Supported by strong financial growth, favourable technical indicators, and market outperformance, the stock’s current trajectory reflects a period of sustained momentum. While the broader market has shown some volatility, Khazanchi Jewellers has maintained its upward course, underscoring its resilience and operational strength.
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