This smallcap jewellery stock hit 20% upper circuit today; here's why

Thangamayil Jewellery share price: The company's Chnnai store did a business worth Rs 16.12 crore of Gold, Silver, Diamond and other articles with a footfall around 7,250 due on the opening day

Thangamayil Jewellery share price was locked in the 20-per cent upper circuit at Rs 1,861.85 on the BSE in Tuesday's intraday trade.The rise in Thangamayil Jewellery shares was supported by heavy volumes after the company shared a solid business update for its new store in Chennai.

 

Thangamayil Jewellery said the company's T. Nagar Showroom at Chennai, in Tamil Nadu, did a business worth Rs 16.12 crore of Gold, Silver, Diamond and other articles with a footfall around 7,250 due on the opening day, February 23, 2025.

 

On the bourses, a combined 236,000 equity shares had changed hands on the counter till 10:55 AM and there were pending buy orders for 145,000 shares on the BSE and NSE.

 

 

Meanwhile, the board of directors of Thangamayil Jewellery, on February 5, approved 3.64 million shares under 'Rights Issue' for an amount aggregating up to Rs 510 crore. The board has fixed Rights issue price at Rs 1,400 per share.

 

The Rights equity shares are being offered on a rights basis to eligible equity shareholders in the ratio of 2 Rights equity shares for every 15 fully paid-up equity shares held on the record date i.e. February 11, 2025. The Rights issue opened on February 21, 2025. It closes on March 4, 2025.

 

However, post the Rights issue approval, the stock price of Thangamayil Jewellery has slipped 25 per cent from Rs 2,066.35 on February 5 to Rs 1,551.55 on Monday, February 24.

 

For the October to December 2024 quarter (Q3FY25), the company reported a 71 per cent year-on-year (Y-o-Y) jump in profit after tax to Rs 48 crore from Rs 28 crore in Q3FY24. Retail sales increased 28 per cent Y-o-Y to Rs 1,095 crore, as against Rs 854 crore in the year-ago quarter. The company said it didn’t incur any adverse custom duty under recovery in Q3FY25.

 

The management said the expansion plan proposed is gaining momentum and the company has identified and entered into lease arrangements in and around Chennai city for up to 8 outlets.

 

It added that if the steep increase in gold and silver prices, witnessed as of now, persists, then it would have a moderate adverse impact on volume offtake. On the realisation front, however, it would have a positive impact in the current quarter (Q4FY25).