BUY - THANGAMAYIL JEWELLERY - IPO - WHY?

THANGAMAYIL - THE NAME FAMOUS IN SOUTH TAMIL NADU PEOPLE FOR GOLD JEWELLERY PURCHASING.

THE FIRST JWEWLLERY SHOT CAME TO IPO OPENS ON TOMORROW.

PRICE BAND Rs.70- Rs.75

( ALREADY INSTITUTIONAL BUYING IS OVER )

THANGAMAYIL JEWELLERY HAS SHOW ROOM IN MADURAI, RAMANATHAPURAM, RAJAPALAYAM, KARAIKUDI AND DINDIGUL.

EVENTHOUGH BUSINESSLINE LAST SUNDAY GIVES A RESULT OF AVOID THIS IPO. BUT I THINK MANY VALUABLE POINTS TO BUY THIS IPO.

THE MAIN THING BL CODES LIMITED GEOGRAPHICAL REACH, THE GOLD INDUSTRY HAS FACE MANY PROBLEM. 

AND ALSO ACCEPT,

VALUATIONS ARE REASONABLE AND AT DISCOUNT TO CLOSEST COMPARABLE GITANJALI GEMS.

YESTERDAY I WENT TO THANGAMAYIL JEWELLERY INVESTORS MEET AT MADURAI. I HAVE GOT SOME VALUABLE POINTS.

THE PROMOTORS ARE 3 BROTHERS OF A FAMILY HAVING GOOD NAME AND A HARD WORK IN THEIR NATURE. IT TURN TO PARTNERSHIP FIRM IN TO PRIVATE LIMITED COMPANY. AND AFTER THAT THEY CAME NOW ON IPO.

IN PROMOTORS SIDE THE COMPANY HAS 50% INDEPENDENT DIRECTORS, LIKE Mr.RATHINAVELU (THE PRESIDENT OF TAMILNADU CHAMBER OF COMMERCE).

• LAST 3 YEARS WEIGHTED AVERAGE OF EARNINGS PER SHARE 9.51
• 
  
• THE LAST YEAR P/E : 8.24 ( THE INDUSTRY COMPOSITE P/E 14.20 )
  
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• AVERAGE 3 YEARS RETURN ON NET WORTH : 21.55
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• BOOK VALUE AROUND Rs. 50/-.
  
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• THE LAST YEAR TOTAL SELLING GOLD IS 920 KILOS.

THE INDIAN GOLD INDUSTRY TURN OVER AROUND 1.75 LAKH CRORE. THIS COMPANY HAS 400 CRORE TURN OVER ONLY.

IN OVER ALL INDIA THE 45% OF GOLD BUYING IN TAMIL NADU DUE TO THIS REASON ONLY ALL BIG GOLD SHOPES ARE CAME TO TAMILNADU.

ALL WE KNOW EVERY DAY GOLD RATES ARE GOING HIGHER AND HIGHER, AND PURCHASING ALSO MUCH MORE. THEY ARE ALREADY HAVING GOOD WILL IN TAMIL NADU THEY GO TO EXPAND THEIR BUSINESS ALL OVER TAMILNADU.

THE MAIN EXPENSES OF THIS JEWELL INDUSTRY IS ADVTERTISMENT. SO OUTLETS IS MORE ADVTERTISMENT PER GRAM IS LOW, AND THEY HAVING GOVT. LOANS FOR MUCH SMALLER INTEREST RATES, SO WORKING CAPITIAL POINT OF VIEW NO PROBLEM. AND BUYING OF MORE KILOS GIVES LOWER RATE TO THIS COMPANY.

SO ALL POINT OF VIEWS 

BUY THANGAMAYIL JEWELLERY IPO 

( EVENTHOUGH IT IS RISK LIKE SHARE MARKET ). 

IT IS A LIMITED RISK.