TBZ shines after signing third franchise pact for an upcoming store in Ranchi

Tribhovandas Bhimji Zaveri rose 2.4% to Rs 106.50 at 14:20 IST on BSE after the company announced the signing of its third franchise agreement for its upcoming store at Ranchi in Jharkhand.

The announcement was made during market hours today, 30 November 2015.

Meanwhile, the S&P BSE Sensex was up 22.72 points or 0.09% at 26,150.92.

On BSE, so far 53,000 shares were traded in the counter as against average daily volume of 24,086 shares in the past one quarter.

The stock hit a high of Rs 108.60 and a low of Rs 103.50 so far during the day. The stock had hit a 52-week high of Rs 187.80 on 29 January 2015. The stock had hit a 52-week low of Rs 102.10 on 16 November 2015.

The stock had underperformed the market over the past one month till 27 November 2015, sliding 17.26% compared with Sensex's 4.13% fall. The scrip had also underperformed the market in past one quarter, declining 15.38% as against Sensex's 0.39% fall.

The small-cap company has equity capital of Rs 66.73 crore. Face value per share is Rs 10.

The latest franchise agreement is the third franchise store of Tribhovandas Bhimji Zaveri (TBZ) - The Original, taking forward its legacy of more than 150 years. Every franchise store will offer a wide array of innovative and attractive jewellery designs with an added attraction of custom-made products catering to the tastes of its discerning customers, TBZ said in a statement.

Going forward, the company will be adopting a mix of company-owned stores and franchise stores to expand its domestic operations, TBZ said. The major part of expansion will be done through addition of franchise stores. This will enable the company to increase its geographical footprint in an asset-light manner and help in improving the return ratios, TBZ said in a statement.

TBZ reported net loss of Rs 12.10 crore in Q2 September 2015 compared with net profit of Rs 0.55 crore in Q2 September 2014. Net sales rose 2.7% to Rs 437.89 crore in Q2 September 2015 over Q2 September 2014.

TBZ sells gold and diamond studded jewellery through retail outlets.

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