Saturday, May 25, 2013

Thangamayil Jewellery - Latest News

Q4 Result and Press Release: Click Here

Board recommends Dividend:
Thangamayil Jewellery Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 24, 2013, inter alia, has recommended a dividend of 50% i.e. Rs. 5/- per equity share of face value of Rs. 10/- each subject to share holders approval in the ensuing Annual General Meeting.

My Views
:
As expected, the results proved to be disappointing, and it seems that the trend might continue at least for next quarter. But still there are many positives that can be taken from the results.
If one compares revenues YoY, you will still find around 17-18% growth which is not bad during tough times.
Of course, we should not neglect the fact that this is probably the first time, company has reported loss. EPS of -4.
So its important to know the reasons, apart from recent disaster with gold, that contributed to heavy expenses.
If we look at the press release, it says, that Advertising and Publicity expense, has gone to 13 Crs from 2 Crs last year same quarter (which indicates an expense increase by 650%). To add to that, Employee Benefit expense has gone up to 6.6 Crs from 3.1 Crs.
Both these expenses, looks good for long term, even if it has resulted into loss as of now.
Considering the fact that promoters have been buying around 190-200 levels, and also some buying around 250-275 levels, the fundamentals of the company still looks promising.
With new branches coming up every few days, and no change in demand of gold in South India, I would advice people to still hold and may be buy on dips.
Dividend of 5 Rs per share seems to be disappointing, considering the fact that last year, at around same stock price, they gave a dividend of 7 Rs per share. But that is evident seeing the fact that the net profit for the year ended March 2013 is exactly half to that of year ended March 2012.
Take your own decision after proper analysis, because this stock is dependent on a commodity, and price of commodity doesn't vary based on fundamentals, it varies according to demand and supply.

No comments:

Post a Comment