Thangamayil Jewellery Shares Plunge 32% in Just One Week: What Should Investors Consider Next?
Thangamayil Jewellery has experienced a significant decline in its share price, falling 5% on Monday, following a steep 32% one-week drop. The company attributed this downturn to ongoing challenges in sales, specifically referencing the first 28 days of Q2 FY27 where no visible improvement was noted. This slowdown has been heavily influenced by a notable increase in import duty from 6% to 15% since May 2026 and the depreciation of the rupee, both of which have led to a cautious consumer base hesitant to purchase gold in anticipation of potential price declines. Additionally, geopolitical tensions, particularly surrounding the U.S.-Iran situation, have further exacerbated uncertainties, leading to decreased demand from expatriate customers reliant on inward remittances in key operational areas.
In the most recent quarter ending June 30, 2026, Thangamayil reported a same-store sales growth of 44.4%, a sharp decrease from the 72.3% growth seen in the previous quarter. Despite witnessing a substantial jump in net profit, which soared 86% year-on-year to Rs 85 crore, and a 71.2% increase in revenue from operations, gold purchase volumes were notably lower. The company’s EBITDA also rose by 66.2% to Rs 144.6 crore, with margins slightly declining to 5.4% compared to the previous year. These figures suggest strong past performance; however, the current sales outlook raises concerns about future profitability.
Investor sentiment has been notably mixed, with Thangamayil receiving heightened interest from top-performing Portfolio Management Services (PMS), including significant allocations from Equirus Wealth and Clockvine Capital Advisors. For example, Equirus Wealth’s Long Horizon Fund positioned over 22% of its portfolio in Thangamayil, following a lucrative quarter for small-cap strategies. Despite this, the recent performance and market conditions have led to panic among some investors, resulting in a sharp decline in stock price from its January 2026 levels where it had doubled.
As the company navigates through this challenging environment, key factors to monitor will include shifts in consumer sentiment, global gold price trends, and geopolitical developments which may influence purchasing behavior. The decline in remittances impacting expatriate purchases and the market’s response to fiscal policy changes will be pivotal in determining the company’s near-term recovery and long-term performance trajectory.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)