The shares of this microcap company surged around 10 percent in Tuesday’s trading session after reporting an increase in net profits by 50 percent YoY. In one year, the stock has delivered more than a 50 percent return to its shareholders.
Price Movement:
With a market capitalisation of Rs. 961 crores, the shares of Tribhovandas Bhimji Zaveri Ltd started Tuesday’s trading session on a higher note at Rs. 143.59 compared to its previous close of Rs. 135.62. During the trading session, the shares hit a high of Rs. 152.30, gaining around 10 percent and are currently trading at Rs. 144 apiece.
Is Tribhovandas Bhimji Zaveri a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
What Happened:
Such a bullish movement in the share price was observed after the company announced Q1FY25 results. Quarterly, the revenue jumped by around 18 percent from Rs. 506.47 crores during the March quarter to Rs. 596.21 crores in the June quarter. In addition, the net profits increased by 35 percent from Rs. 12.61 crores to Rs. 17.05 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue increased by around 4 percent from Rs. 570.78 crores during Q1FY24 to Rs. 596.21 crores in Q1FY25. On the other hand, the net profits zoomed by around 50 percent from Rs. 11.37 crores to Rs. 17.05 crores during the same timeframe.
Moreover, the company experienced a 32.19 percent year-over-year increase in EBITDA, reaching Rs.42.59 crores in Q1 FY25 and the EBITDA margin increased by 150 basis points in Q1 FY25, reaching 7.14 percent compared to 5.65 percent in the previous year.
Operational Insights:
The company attributes its robust performance to effective operational strategies, including cost control and improved inventory turnover. Furthermore, the opening of a new franchise in Jaipur is part of TBZ’s strategic expansion, aimed at enhancing its market presence while maintaining high standards of customer service and quality.
Additionally, the Indian government has lowered customs duties on gold and silver from 15 percent to 9 percent. This reduction is anticipated to benefit the company by decreasing raw material costs and enhancing overall profit margins.
Important Financial Ratio:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 9.04 percent and a return on capital employed (RoCE) of 17.83 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 2.36 percent.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters hold 74.12 percent of the shares, FIIs own 0.76 percent, and Retail Investors hold the remaining 25.12 percent.
Company Profile:
Tribhovandas Bhimji Zaveri Ltd. (TBZ) is a prominent Indian jeweller and jewellery retail chain, established in 1864. The company specializes in the design, manufacture, and retail of gold and diamond jewellery, catering to various occasions, including weddings and everyday wear.
Written By Vaibhav Patil
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