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Regional Jewellers Outpace Titan Amid Gold Price Surge
Two regional jewellery companies have made much bigger stock-market gains than Titan over the past five years.
TBZ, a jewellery company with roots in Mumbai dating back to 1864, is being taken over by GRT Jewellers.
Investors pushed TBZ’s share price far above the price GRT agreed to pay the family.
Thangamayil Jewellery, which operates mainly in Tamil Nadu, also saw its shares rise strongly.
However, its sales increased mostly because gold became more expensive, while jewellery volumes grew more slowly.
A rise in gold prices can make old inventory look more profitable.
But customers may buy less when gold becomes too expensive or import duties rise.
TBZ has weak cash generation compared with its profit and high borrowings.
Thangamayil has stronger recent cash generation, but its shares trade at a much higher valuation and its sales volumes have softened.
TBZ shares rose 787% in five years after GRT Jewellers agreed to buy promoter control.
GRT agreed to acquire TBZ’s 74.12% promoter stake for up to Rs 1,033.71 crore.
TBZ’s public-market price reached Rs 665, far above the Rs 249.61 open-offer price.
Thangamayil Jewellery shares gained 885% in five years, despite a 19% fall after its June-quarter results.
Both companies reported sharply higher profits, but gold prices—not volumes—drove much of the recent growth.
- Who
- Tribhovandas Bhimji Zaveri, GRT Jewellers, Thangamayil Jewellery, Titan Company, investors and jewellery buyers.
- What
- TBZ and Thangamayil Jewellery delivered stock-market gains of about 787% and 885%, respectively, while their profits rose sharply.
- Where
- TBZ operates mainly in Maharashtra and Gujarat; Thangamayil Jewellery operates across Tamil Nadu.
- When
- The comparison covers roughly five years through 22 September 2026, with the latest operating figures through June 2026.
- Why
- Higher gold prices increased the value of jewellery inventory and lifted reported revenue and profits, while TBZ also benefited from takeover expectations.
Growth and Takeover Optimism
Valuation and Operating Caution
TBZ’s takeover valuation
Growth and Takeover Optimism
Investors appear to expect GRT Jewellers to expand the TBZ brand, pushing the market price well above the takeover and open-offer prices.
Valuation and Operating Caution
The market price is roughly three times the amount GRT agreed to pay the family, while TBZ generated only Rs 30 crore of operating cash against Rs 202 crore of FY26 profit.
Thangamayil’s growth quality
Growth and Takeover Optimism
Thangamayil’s profit rose 86% in the June 2026 quarter, and sales during the three-day Aadi Perukku festival more than doubled to about Rs 344 crore.
Valuation and Operating Caution
Gold ornament volumes grew only 9% in the June quarter, the stock trades at about 41 times earnings, and management reported weaker demand after the duty increase.
Effect of higher gold prices
Growth and Takeover Optimism
Rising gold prices increase the value of inventory purchased earlier and can significantly lift jewellers’ margins and reported profits.
Valuation and Operating Caution
High prices can discourage shoppers, and inventory-related gains may reverse if gold prices fall; the article says investors should focus on volumes and cash flow.
Key facts
- TBZ five-year share gain
- About 787%, from roughly Rs 75 in September 2021 to Rs 665 on 22 September 2026.
- Thangamayil five-year share gain
- About 885%, from roughly Rs 520 to Rs 5,120 over the same period.
- TBZ takeover
- GRT Jewellers agreed to acquire the promoters’ 74.12% stake for up to Rs 1,033.71 crore, or about Rs 209 per share.
- TBZ open offer
- GRT proposed an open offer for the remaining 25.88% at Rs 249.61 per share.
- TBZ latest profit
- Trailing twelve-month net profit to June 2026 was Rs 214 crore, up about 189%.
- Thangamayil latest profit
- Trailing twelve-month net profit to June 2026 was Rs 391 crore, up about 264%.
- Gold import duty
- The article says gold import duty increased from 6% to 15% on 13 May 2026.
Sources
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