Steady Price Appreciation and Market Outperformance
Khazanchi Jewellers Ltd’s share price closed at ₹782.75, up by ₹5.40 or 0.69% on 02-Jan, continuing a positive momentum that has seen the stock gain for 17 consecutive trading days. Over this period, the stock has delivered a 5.46% return, significantly outperforming its sector by 0.61% on the day. The stock is also trading close to its 52-week high of ₹799.50, just 2.14% shy of that peak, signalling strong investor interest and confidence in the company’s prospects.
When compared to the broader market, Khazanchi Jewellers has outpaced the Sensex comfortably. Over the past week, the stock appreciated by 2.42%, nearly three times the Sensex’s 0.85% gain. The one-month return of 6.66% dwarfs the Sensex’s 0.73%, while the year-to-date gain of 1.99% also surpasses the benchmark’s 0.64%. Most impressively, the stock has generated a 25.24% return over the last year, more than triple the Sensex’s 7.28% rise, underscoring its strong market performance.
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Strong Financial Fundamentals Driving Investor Confidence
The rise in Khazanchi Jewellers’ stock price is underpinned by its impressive financial performance. The company has demonstrated a healthy long-term growth trajectory, with net sales expanding at an annual rate of 90.30% and operating profit surging by 105.40%. This robust growth is further reflected in the net profit, which has increased by 55.45%, culminating in outstanding quarterly results declared in September 2025.
Specifically, the company reported a profit before tax excluding other income (PBT less OI) of ₹31.20 crore, marking an 83.8% increase compared to the average of the previous four quarters. The profit before depreciation, interest, and tax (PBDIT) reached a record ₹32.31 crore, while the profit after tax (PAT) also hit a high of ₹23.55 crore. These strong earnings figures have reinforced the company’s ability to service its debt efficiently, as evidenced by a low Debt to EBITDA ratio of 1.14 times, which is a positive indicator of financial health and risk management.
Additionally, Khazanchi Jewellers is trading above all key moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—signalling sustained upward momentum and technical strength in the stock’s price action.
Market Position and Liquidity Considerations
Despite the positive price action, there has been a decline in investor participation, with delivery volume on 31 December falling by 24.49% compared to the five-day average. However, liquidity remains adequate for trading, with the stock’s average traded value supporting trade sizes of approximately ₹0.08 crore, ensuring that investors can transact without significant price impact.
While the company’s return on capital employed (ROCE) stands at a healthy 20%, the valuation appears relatively expensive with an enterprise value to capital employed ratio of 6.2. The price-to-earnings-to-growth (PEG) ratio of 0.7 suggests that the stock’s price growth is somewhat aligned with its earnings growth, which may justify the premium valuation to some extent.
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Risks and Market Sentiment
One notable risk factor is the absence of domestic mutual fund holdings in Khazanchi Jewellers, which may indicate a lack of institutional endorsement or concerns about valuation or business fundamentals. Domestic mutual funds typically conduct thorough research and their minimal stake could reflect caution among professional investors.
Nevertheless, the company’s consistent positive quarterly results and strong growth metrics have clearly resonated with retail investors, as reflected in the stock’s sustained gains and outperformance relative to the broader market and sector peers.
In summary, Khazanchi Jewellers Ltd’s recent rise in share price is primarily driven by its robust financial performance, strong growth in sales and profits, efficient debt servicing, and technical strength in the stock’s trading patterns. While valuation and institutional participation remain points to monitor, the company’s fundamentals and market momentum continue to support its upward trajectory.
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