Tara Jewels surges over 40% in four days

The stock zoomed 42% in past four trading sessions from Rs 39.10 to Rs 55.55 on the BSE.

Tara Jewels has locked in upper circuit of 10% at Rs 55.55, extending its past three days rally on the BSE, on back of heavy volumes.

The stock has zoomed 42% in past four trading sessions from Rs 39.10 on the BSE. The trading volumes on the counter jumped more than three-fold with a combined 2.79 million shares changed hands on the BSE and NSE. At 02:32 PM, there were pending buy orders for 567,626 shares on both the exchanges.

On December 9, in an investor presentation Tara Jewels said that it is witnessing good traction in the export business in terms of new customers, geographies and brands. Further, its future strategy includes growing cash generating business and strong branding efforts leading to expansion in margins.

The company had signed an exclusive manufacturing and supply agreement with the largest speciality jeweler in USA and UK, for the designer Brand Angel Sanchez.

Meanwhile, the domestic credit rating agency Credit Analysis and Research Ltd (CARE) has revised the long and short-term rating of the total bank facilities of the company as CARE BB/CARE A4 (revised from CARE BBB+/CARE A2), Tara Jewels said in a regulatory filing.

The revision in the rating is on the basis of recent development including operational and financial performance of Tara Jewels for FY15 and first half of FY16, CARE said in a letter dated December 10, 2015.

The ratings however, continue to derive strength from the experience of the promoters in the Gems & Jewellery (G&J) industry, presence across the jewellery value chain and established clientele.

The ability of Tara Jewels to manage liquidity position by improving its working capital cycle, amidst an uncertain economic situation in the developed markets like US and Europe & intense competition within the G&J industry and volatile raw material prices remain the key rating sensitivities, it added.