Strong Price Momentum and Market Outperformance
The stock’s latest price marks a new peak, surpassing previous 52-week highs and signalling strong investor confidence in the company’s trajectory. On the day of this record, Khazanchi Jewellers outperformed its sector by 1.72%, with a daily gain of 1.55% compared to the Sensex’s 0.36%. This outperformance is further supported by the stock trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained upward momentum.
Over various time frames, Khazanchi Jewellers has demonstrated notable price resilience and growth. The one-month performance shows a rise of 10.51%, significantly ahead of the Sensex’s 2.48%. Over three months, the stock’s gain of 23.95% contrasts with the Sensex’s 7.04%, while the year-to-date increase of 19.01% nearly doubles the Sensex’s 10.08%. The one-year return stands at 13.03%, again surpassing the Sensex’s 7.79%. These figures highlight the company’s ability to maintain a strong market position relative to broader benchmarks.
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Financial Performance Underpinning the Milestone
Khazanchi Jewellers’ recent financial results provide insight into the factors supporting its stock price peak. The company reported its highest quarterly figures with PBDIT reaching Rs.32.31 crores, PBT less other income at Rs.31.20 crores, and PAT at Rs.23.55 crores. These figures represent the strongest quarterly earnings in the company’s history, reflecting operational efficiency and profitability.
Net sales have exhibited a compound annual growth rate of 90.30%, while operating profit has grown at an annual rate of 105.40%. Net profit growth stands at 55.45%, with positive results declared for two consecutive quarters. This consistent financial performance has contributed to the stock’s upward trajectory and the attainment of its all-time high.
Debt Management and Valuation Metrics
The company’s ability to service its debt is reflected in a low Debt to EBITDA ratio of 1.14 times, indicating a manageable debt burden relative to earnings. Return on Capital Employed (ROCE) is reported at 20%, which, alongside an enterprise value to capital employed ratio of 5.8, suggests a valuation that investors may consider on the higher side given the company’s current scale.
Over the past year, while the stock price has shown a return of 13.03%, profits have risen by 64%, resulting in a price-to-earnings-to-growth (PEG) ratio of 0.6. This metric provides a perspective on the relationship between earnings growth and valuation, offering a nuanced view of the company’s financial standing.
Market Participation and Shareholding Insights
Despite Khazanchi Jewellers’ size and performance, domestic mutual funds currently hold no stake in the company. This absence of mutual fund participation may reflect a cautious stance or valuation considerations among institutional investors who typically conduct detailed on-the-ground research. The limited presence of such investors is a noteworthy aspect of the company’s shareholder profile.
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Sector Context and Historical Performance
Khazanchi Jewellers operates within the Gems, Jewellery and Watches sector, a segment known for its cyclical nature and sensitivity to consumer demand. The stock’s recent performance has outpaced the sector benchmark, with a one-day gain of 1.55% compared to the sector’s lower movement. Over the last three months, the stock’s 23.95% rise contrasts with the sector’s more modest gains, highlighting its relative strength.
However, when viewed over longer horizons, the stock’s three-year, five-year, and ten-year returns stand at 0.00%, while the Sensex has recorded gains of 35.92%, 92.63%, and 228.70% respectively. This indicates that Khazanchi Jewellers’ recent surge is a relatively new development in its market journey, marking a significant shift in its valuation and investor perception.
Summary of the Milestone Achievement
Khazanchi Jewellers’ attainment of an all-time high stock price at Rs.744.5 is a noteworthy event that encapsulates its recent financial strength and market momentum. The company’s robust quarterly earnings, strong sales growth, and manageable debt levels have underpinned this achievement. While valuation metrics suggest a premium, the stock’s performance relative to sector and benchmark indices highlights its current market standing.
As the company continues to navigate its sector dynamics, this milestone serves as a testament to its evolving market position and operational results.
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