Jewellery stocks in focus; Thangamayil Jewellery, TBZ hit 52-week high

STOCK MARKET - Shares of gems & jewellery companies  moved higher by up to 20% on BSE after Thangamayil Jewellery posted a strong set of numbers for the quarter ended June, 2017 (Q1FY18).

Besides Thangamayil Jewellery, Tribhovandas Bhimji Zaveri (TBZ), Gitanjali Gems, Tara Jewels, Rajesh Exports and Renaissance Jewellery were also up between 2% and 7% on BSE. By comparison, the S&P BSE Sensex was up 0.38% or 123 points higher at 32,351 at 12:27 pm.


Thangamayil Jewellery hit a 52-week high of Rs 347, up 20% on BSE, after the company more than doubled its net profit at Rs 9.62 crore in Q1FY18, on the back of strong volume growth. It had profit of Rs 4.51 crore in the same quarter year ago.

Net sales of the company during quarter under review increased by 50% to Rs 434 crore against Rs 289 crore in the corresponding quarter of previous fiscal.

“Volume in gold ornaments products during the quarter rose 49% to 1,241 kgs as against 832 kgs in previous year quarter. Volumes in silver products increased 34% to 5.9 tonnes from 4.4 tonnes,” Thangamayil Jewellery said in a release.

GET LIVE UPDATES ON SHARE MARKET

Demonetisation: As Indian tourists stay home, Dubai's gold trade suffers

Breaking News - Demonetisation's impact has travelled all the way to Dubai as Indian tourists are avoiding foreign tours since November. Among popular destinations, Dubai has been one of the easiest, nearest and cheapest. The immediate casualty has been gold demand in Dubai by Indian tourists.

Dubai’s famous Gold Souq, a prime market for the yellow metal and similar to India's Zaveri Bazar in Mumbai or Manek Chok in Ahmedabad, which houses many prominent wholesale and retail jewellers, has seen a plunge in gold jewellery demand from Indian tourists. 

Demonetisation - Buying jewellery from Dubai was lucrative for Indian tourists due to the trustworthy purity of gold and ease of using unaccounted money by buying Dubai's currency, the Dirham, with some premium in the hawala market. Further, Customs duty of 10 per cent can be avoided when reasonable jewellery is worn by tourists. 

A Dubai-based jeweller, who runs a chain of jewellery shop including a show room in Dubai's gold souq, said on the condition of anonymity that "Indian tourists' share in Dubai gold demand is around 15-20 per cent and that has been affected." He said that the overall flow of Indian tourists has come down in Dubai. Other than jewellery, electronic gadgets like costly cell phones, laptops and DSLR cameras etc are the other items on an Indian tourist's shopping list in Dubai.(Read More)