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Overall, Wednesday was a wonderful and green day in the Indian stock market, but despite this, heavy selling by investors was seen in some selected shares. One such big case was seen in the stock of Thangamayil Jewellery, where the selling pressure increased so much that the stock fell by 10 percent and reached the lower circuit of Rs 6,461 on the Bombay Stock Exchange i.e. BSE. The surprising thing is that this earthquake has come in the market when the company has presented tremendous figures demonstrating its financial health during the June quarter (Q1 FY27).
How were the financial results of June quarter?
According to data released by Thangamayil Jewellery, the company has registered an impressive net profit of Rs 85 crore during the quarter ending June 2026. If we compare it with the same quarter of last year, then the net profit of the company was Rs 45.7 crore, according to which a huge increase of 86 percent has been registered on an annual basis. Apart from this, the company’s revenue from operations also jumped by 71.2 percent on an annual basis to Rs 2,666.4 crore, whereas in the same quarter of the last financial year this figure was Rs 1,558 crore. The company’s EBITDA also increased by 66.2 per cent to Rs 144.6 crore from Rs 87 crore a year ago, although marginally the EBITDA margin declined slightly to 5.4% from 5.6% last year.
Why did the demand for gold decrease and what was the real reason for the stock falling?
Despite excellent profits, some major reasons related to the company’s business are responsible for the lower circuit in the stock. The company’s same-store sales (SSS) grew by 44.4% during the June quarter of the current financial year, compared to 72.3% in the previous quarter. Thangamayil Jewelery clarified that gold sales volumes remained relatively low due to volatility seen in international gold prices. Apart from this, mainly the increase in import duty on gold from 6% to 15% from May 13, 2026 and the huge fall in the value of Indian rupee had an impact on the purchases of customers. Many customers postponed the purchase of jewelery in the hope that gold prices may come down in future. Along with this, the demand for gold has also been affected due to the ongoing tension and uncertainty in West Asia and the decline in remittances sent by NRIs, although the company expects to see improvement in the market in the second half of the financial year 2027.
Excellent performance of the stock so far
If we look at the long history and performance of Thangamayil Jewelery shares, before this fall, this stock has given strong returns to its investors. The stock has registered impressive returns of 10% in the last one month, 62% in the last three months and 85% in the last six months. At the same time, if we talk about the last one year, this stock has given multibagger returns to the investors and has gained 249%, whereas during the last five years this stock has given a bumper return of 1,370%. Recently, on July 28, the stock touched its 52-week high of Rs 7,429, while its 52-week low was Rs 1,774.35.