Thangamayil Jew. (THANGAMAYL)

FairStock Score: 39/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Sales growth of 112.44% and profit growth of 120.98% show exceptional recent momentum.
• ROE of 46.58% is outstanding, and Piotroski F-Score of 7/9 suggests sound financial health.
• Promoter holding of 61.56% aligns management interests with minority shareholders.
• PEG ratio of 0.44 indicates that if growth persists, the valuation may be less stretched than the trailing P/E suggests.
• Latest quarter net profit of ₹105 Cr on ₹2,406 Cr sales demonstrates the business is converting growth into earnings.

Concerns

• P/E of 50.83 and P/B of 23.04 leave very little margin of safety for a value investor.
• Debt/Equity of 0.96 is high; ROCE of only 13.74% versus ROE of 46.58% suggests leverage is boosting equity returns.
• Dividend yield of 0.32% offers negligible income while waiting for growth to materialize.
• Stock is down sharply from its 52-week high of ₹7,229 but still trades at expensive multiples, indicating risk if growth decelerates.

AI Analysis

At ₹3,789, Thangamayil trades at 50.8 times earnings and 23 times book. That is not a price Benjamin Graham would call a margin of safety. The business is growing at a spectacular pace—sales up 112% and profit up 120%—and the 0.44 PEG suggests the market may not be pricing enough future growth. But I have learned to be wary when a jeweller grows this fast: leverage does much of the work. Debt/equity of 0.96 means almost as much debt as equity, and while ROE is 46.58%, ROCE is only 13.74%. That gap is a clear sign that financial leverage is flattering the return on equity. As a shareholder, I prefer returns earned by the business itself, not borrowed money. The Piotroski score of 7 indicates decent financial health, and promoter holding of 61.56% aligns owners with operators. Still, the company earns a dividend yield of just 0.32%, so the investor is fully dependent on future growth to justify the price. Book value of ₹164.46 backs only a small fraction of the share price, leaving little asset support. In the latest quarter, net profit was ₹105 Cr on sales of ₹2,406 Cr—a thin margin typical of jewellery; any hiccup in volume or margin can hurt. The stock has fallen from ₹7,229 to ₹3,789, which reminds me that even excellent growth quotes can have volatile prices. If growth continues and debt is controlled, this could be a fine business, but at 50 times earnings I would need a very long runway and a clear plan for converting high sales into high free cash flow.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer