Expecting an Outstanding Q3 results from Thangamayil Jewellery Ltd. (Tamil nadu’s Organised Jewellery chain)
Gold (CFDs on Gold) had gained 18.5%+ in Q3 FY2024.
Company keeps around 25% portion of their inventory as unhedged.
Hedge : Unhedged inventory ratio = 75:25.
Company will benefit from the Huge Inventory Gains on Unhedged portion of inventory (25% inventory) which will lead to margin expansion at the operating margin levels.
Previously, Margin Expansion happened in Q2FY21.
In Quarter ending Sept 2020, Gold prices rose 17%+ which led to company’s highest ever operating margin of 22.76%.
In Current qtr,
->Gold price rised 18.5%+ & closed above $2000/OZ
→ Strong Growth in Sales expected (wedding & festival season)
→ Management forecasts ₹4,000 crore revenue in FY24, nearly doubling figures from two years ago revenue. (source: CNBC 3rd Nov. Management interview)
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