Investment in Tribhovandas Jeweller's - An Opportunity for Long Term Investor


Tribhovandas jeweler is ones of the most respected jewelers in North India for their quality product in the gold segment. They entered into the equity market with full fanfare but faced the turbulent time post dismal performance. Management quickly identified the gap and move strategically to start increasing its footprint through franchisee model in tier 2 and tier 3 cities. 

The stock price stumbles from 180 level to 60 INR in the last one year. Company in recent quarter made respectable profit and the market capitalization's is also under 500 Cr.

As global economy is again entering into economic crisis thanks to confusion created by UK referendum coupled with unrest in Middle East. The lack of economic growth and the signal supported by US Federal Reserve indicate the investor to turn towards Gold and the price went above $1400 ounce. 

It is expected that the gold price will cross $1550 in coming quarter. At the same time, Indian economy is coming on track and the monsoon  is tracking in the right direction which in turn will give more bump to gold buyer community during festive time especially in tier 2 and tier 3 where Tribhovandas already showing their presence. 

It will help company to increase their margin and subsequently increased profitability which will attract retail investor towards the company equity. In my point of view, the stock price may jump more than 50 % very quickly with little good news flow from the company.

Disclaimer - Consult your financial consultant before investing

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