Saturday, March 2, 2024

Diwali Picks 2023: Invest in this jewelry company for a 35% return

Nov 9, 2023- For traders and investors in the stock market, investing in the auspicious Muhurat trading on the occasion of Diwali is considered auspicious. Many investors and traders do participate in the Muhurat trading on the occasion of Diwali for this very reason.

This time, on the occasion of Samvat 2080, if you too want to earn from investing in shares, then experts advise you to invest in the shares of Manoj Vaibhav Gems and Jewelers, a jewelry company that has recently listed on the stock market.

The shares of Manoj Vaibhav Gems and Jewelers, which are currently trading at around Rs 306, are expected to touch the level of Rs 400 by the next Diwali and can give you a return of 35%. Manoj Vaibhav Gems and Jewelers, with a market capitalization of around Rs 1,497 crore, is a famous jewelry chain in Andhra Pradesh.

Manoj Vaibhav Gems has a market share of about 4% in the retail market of Andhra Pradesh and Telangana and about 10% in the organized jewelry market. The company is gradually starting operations in Odisha and Tamil Nadu.

Stock market experts say that if you compare with the big jewelry companies in the country, the shares of Manoj Vaibhav Gems and Jewelers are still available at a very low premium. Experts have compared with Kalyan Jewellers and said that Kalyan Jewellers’ revenue per store is between Rs 90 and Rs 100 crore, while Manoj Vaibhav Gems and Jewelers’ is Rs 150 to Rs 160 crore.

Similarly, Kalyan Jewellers’ EBITDA per store is Rs 7.7 crore while Manoj Vaibhav’s is Rs 11.3 crore. Kalyan Jewellers’ EBITDA per square foot is Rs 11,832 while Manoj Vaibhav Gems and Jewellers’ is Rs 14,667. If we talk about PAT margin, in the case of Kalyan Jewellers, it is 3.4% while in the case of Vaibhav Jewellers, it is 3.5%.

The company has been operating in the jewelry retailing business in the markets of Andhra Pradesh and Telangana since 2008. The company has also launched a brand with a special name for premium jewelry. In the last financial year, the revenue from the business of Manoj Vaibhav Gems was Rs 2,027 crore. On a year-on-year basis, the business of Manoj Vaibhav Gems is growing by about 19%. Manoj Vaibhav Gems has a market share of about 4% in the jewelry market of Andhra Pradesh and Telangana and about 10% in the organized jewelry market.

Experts’ opinion

According to experts, Manoj Vaibhav Gems and Jewelers is a good investment option for the following reasons:

  • The company has a strong brand presence in the Andhra Pradesh and Telangana markets.
  • The company is growing at a healthy pace.
  • The company has a good management team.

However, it is important to note that the stock market is volatile and there is always a risk of loss. Investors should do their own research before investing in any stock.

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