CRISIL assigns valuation grade of 4/5 to Thangamayil Jewellery Madurai Cumbum Tuticorin

CRISIL Research has come out with its report on Thangamayil Jewellery . The research firm has initiated coverage on the company with a fundamental grade of "2/5" and maintained the fair value of Rs 182 per share, in its June 20, 2011 report.

Thangamayil�s Q1FY12 revenues grew by 77.7% y-o-y to Rs 2,231 mn. A 23% increase in gold prices combined with a rise in sales volumes due to the ramping up of new branches in Tuticorin and Madurai-Annanagar led to the increase in top line. Revenues were also supported by the opening of a new branch at Cumbum near Madurai in June 2011.

Valuations: Current market price has upside
We continue to use the P/E method to value Thangamayil. We apply a multiple of 6x on FY13 EPS of Rs 30.3 to arrive at a fair value of Rs 182. At the current market price of Rs 155, our valuation grade is 4/5, says CRISIL Research report.

Source:MoneyControl