Khazanchi Jewellers Stock Hits All-Time High at Rs.769.95

Steady Climb to New Heights

The stock price of Khazanchi Jewellers has been on an upward trajectory, with the company recording gains over the last 11 consecutive trading days. During this period, the stock has delivered a cumulative return of 2.94%, demonstrating resilience and steady investor confidence. On the day the all-time high was reached, the stock edged up by 0.10%, closely tracking the sector’s performance and aligning with the broader market movement.

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 indicates a strong momentum that has been building over time. This technical strength complements the company’s fundamental performance, reinforcing the stock’s current valuation levels.

Market Performance Compared to Benchmarks

When compared with the broader market indices, Khazanchi Jewellers has demonstrated notable outperformance over various time frames. Over the past one year, the stock has recorded a return of 21.80%, significantly surpassing the Sensex’s 9.12% return and the BSE500’s 6.59% return. Year-to-date, the stock’s return stands at 22.35%, more than double the Sensex’s 9.58% in the same period.

Shorter-term performance also reflects this strength, with the stock posting a 4.13% return over the last month, compared to the Sensex’s 0.86%. Over three months, the stock’s return of 28.39% far exceeds the Sensex’s 4.79%. These figures highlight Khazanchi Jewellers’ ability to generate returns that outpace the broader market consistently.

Financial Growth Underpinning the Rally

Khazanchi Jewellers’ recent financial results provide insight into the foundation supporting its stock price performance. The company’s net sales have expanded at an annual rate of 90.30%, while operating profit has grown at an annualised rate of 105.40%. This strong growth in top-line and operating profitability has contributed to the company’s ability to deliver positive quarterly results consecutively.

Net profit growth has also been substantial, with a rise of 55.45% reported in the latest period. The company’s quarterly earnings figures reached new highs, with PBDIT at Rs.32.31 crores, PBT less other income at Rs.31.20 crores, and PAT at Rs.23.55 crores. These figures represent the highest quarterly results recorded by Khazanchi Jewellers to date, underscoring the company’s operational efficiency and profitability.

Debt Management 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. This conservative leverage position supports financial stability and reduces risk associated with debt servicing costs. The company’s return on capital employed (ROCE) stands at 20%, reflecting effective utilisation of capital in generating earnings.

However, valuation metrics suggest a relatively elevated price level, with an enterprise value to capital employed ratio of 6.1. The price-to-earnings-to-growth (PEG) ratio is 0.7, which provides context on the relationship between valuation and earnings growth. These figures highlight the market’s current assessment of the company’s growth prospects relative to its valuation.

Shareholding and Market Participation

Despite the company’s size and performance, domestic mutual funds hold no stake in Khazanchi Jewellers. This absence of mutual fund participation may reflect a cautious stance or differing views on valuation and business fundamentals. The lack of significant institutional ownership contrasts with the company’s market performance and financial results, presenting an interesting dynamic in shareholding patterns.

Sector Context and Relative Performance

Operating within the Gems, Jewellery And Watches sector, Khazanchi Jewellers’ stock performance aligns with sector trends while also demonstrating individual strength. The stock’s one-day performance of 0.10% closely mirrors the Sensex’s 0.12%, while its one-week return of 1.02% compares with the Sensex’s 1.26%. These figures indicate that the stock moves largely in tandem with broader market and sector movements, yet its longer-term returns have outpaced these benchmarks significantly.

Over three years and beyond, the stock’s returns are recorded as zero, which may reflect data availability or listing history. In contrast, the Sensex has delivered returns of 43.08% over three years, 82.29% over five years, and 231.39% over ten years, providing a broader market context for Khazanchi Jewellers’ more recent performance surge.

Summary of Key Financial Highlights

Khazanchi Jewellers’ recent financial disclosures highlight several key metrics that underpin its market valuation and stock price movement:

• Net sales growth at an annual rate of 90.30%


• Operating profit growth at an annual rate of 105.40%


• Net profit growth of 55.45% in the latest quarter


• Highest quarterly PBDIT of Rs.32.31 crores


• Strong debt servicing capacity with Debt to EBITDA ratio of 1.14 times


• Return on capital employed at 20%

These figures collectively illustrate a company that has expanded its operations and profitability significantly in recent periods, supporting the stock’s rise to an all-time high.

Conclusion: A Milestone Marked by Consistent Performance

Khazanchi Jewellers’ attainment of a new all-time high stock price at Rs.769.95 represents a culmination of sustained financial growth, consistent quarterly results, and positive market momentum. The company’s ability to maintain gains over an extended period, coupled with strong sales and profit growth, has contributed to this landmark achievement. While valuation metrics suggest a premium level, the underlying financial data reflects a company that has delivered substantial growth and operational strength within its sector.

This milestone serves as a significant reference point in Khazanchi Jewellers’ market journey, highlighting the company’s evolution and current standing in the competitive Gems, Jewellery And Watches industry.

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