1. At a Glance
The Tamil Nadu-based jeweller, famous for feeding the state’s gold obsession, clocked Q1 FY26 revenue of ₹1,558 Cr with a PAT of ₹46 Cr. Sales glittered (+28% YoY), but rising promotional and expansion expenses trimmed the shine on margins.
2. Introduction
Picture this: You sell gold where 40% of India’s gold is already consumed – easy money, right? Not so fast. Thangamayil is growing fast but burning cash on promos and new stores like a teenager with a credit card.
3. Business Model – WTF Do They Even Do?
- Core: Retail jewellery (75% revenue from gold).
- Presence: Multiple stores across Tamil Nadu.
- Edge: In-house goldsmithing & trend-sensitive designs.
- Catch: Expansion costs eating profit margins.
4. Financials Overview
- Q1 FY26 Sales: ₹1,558 Cr (+28% YoY)
- Net Profit: ₹46 Cr (↓19% YoY due to costs)
- OPM: 6% (vs. 7% last year)
Verdict: Sales boom, profits zoomed… backward.
5. Valuation – What’s This Stock Worth?
- P/E: 51.8 (market pricing in a golden future)
- Book Value: ₹355
- Fair Value Range: ₹1,600–₹2,000
Punchline: Priced like Titan’s cousin but margins don’t match the bling.
6. What-If Scenarios
- Bull: Margin recovery + strong gold demand → ₹2,200
- Bear: Expansion drag + gold price volatility → ₹1,500
- Base: ₹1,700–₹1,900, assuming steady store ramp-up.
7. What’s Cooking (SWOT)
Strengths: Strong regional brand, healthy sales growth.
Weakness: High P/E, margin pressure.
Opportunities: Urban expansion, wedding season tailwinds.
Threats: Gold price swings, competition from Titan/Kalyan.
8. Balance Sheet 💰
| Particulars (Mar’25) | ₹ Cr |
|---|---|
| Equity Capital | 31 |
| Reserves | 1,071 |
| Borrowings | 797 |
| Total Liabilities | 2,559 |
| Comment: Debt rising along with store count – leverage is creeping in. |
9. Cash Flow (FY23–FY25)
| Year | CFO | CFI | CFF |
|---|---|---|---|
| FY23 | ₹10 Cr | -₹86 Cr | ₹78 Cr |
| FY24 | ₹330 Cr | -₹30 Cr | -₹293 Cr |
| FY25 | -₹424 Cr | -₹138 Cr | ₹637 Cr |
| Snark: Cash flow is swinging more than a gold chain in a storm. |
10. Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 14.9% |
| ROCE | 13.7% |
| OPM | 4–6% |
| D/E | 0.3 |
| Punchline: Returns are decent but not Titan-level hot. |
11. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹3,153 Cr | ₹153 Cr | ₹80 Cr |
| FY24 | ₹4,911 Cr | ₹219 Cr | ₹119 Cr |
| FY25 | ₹5,252 Cr | ₹220 Cr | ₹108 Cr |
| Comment: Revenue compounding like gold prices; profit not as shiny. |
12. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Titan | 60,456 | 3,336 | 90 |
| Kalyan | 25,045 | 714 | 86 |
| Thangamayil | 5,252 | 108 | 52 |
| Peer verdict: Strong growth but still the small jeweller at the big wedding. |
13. EduInvesting Verdict™
Thangamayil’s Q1 FY26 sparkles on revenue but not on profit. Expansion is eating into margins, and the P/E is already heavy. It’s a regional growth story with potential, but investors need to pray margins don’t keep shrinking like a cheap gold chain.
Written by EduInvesting Team | 28 July 2025
Tags: Thangamayil Jewellery, Q1 FY26 Results, Gold Retail, EduInvesting Premium
