Brokerage firm BoB Capital Markets has upgraded Thangamayil Jewellery from 'hold' to 'buy' with a target price of ₹6,355 per share, indicating an upside potential of 28%. According to the brokerage firm's report, the upgrade is based on the belief that the current valuation offers an attractive risk-reward opportunity, with the stock valued at 35x Sep'28 EPS. The firm highlighted that with a strong balance sheet, disciplined working capital management, and improving return ratios, the company is well positioned to deliver consistent earnings growth.
Thangamayil Jewellery delivered exceptional financial results for the quarter ended June 2026, with net profit surging 86% year-on-year to ₹85 crore from ₹45.7 crore in the same quarter last year. As reported by Mint, revenue from operations surged 71.2% year-on-year to ₹2,666.4 crore compared with ₹1,558 crore in the corresponding period of the previous financial year. The company also reported robust operating performance, with EBITDA rising 66.2% to ₹144.6 crore from ₹87 crore a year earlier, though EBITDA margin moderated slightly to 5.4% from 5.6% in the year-ago quarter.
The management of Thangamayil Jewellery remains confident of delivering 25% revenue growth while sustaining 6% EBITDA margins, supported by ongoing store expansion in Tamil Nadu, strong inventory rotation, and a capital-efficient business model. According to Mint, the management expects pent-up demand to drive a recovery in H2'27, particularly during the festive and wedding season in Q3 and Q4, including Diwali. With many purchases deferred rather than cancelled, this pent-up demand is anticipated to significantly contribute to the company's growth trajectory.
According to Mint, Thangamayil Jewellery share price has delivered mixed performance in the near term, gaining 3.15% over the past week but declining 7.67% over the one-month period. On a year-to-date basis, the stock has risen 55.43%, reflecting strong performance in 2026. The stock has also gained 140.56% over the past year and delivered multibagger returns with 338.75% growth over three years and an impressive 879.96% growth over five years.
