Are you looking for a stock that has the potential to grow your investment significantly, and is also under 100 rupees? If so, then you should consider investing in TBZ. This company is a leader in its industry and has a strong track record of growth. In addition, the stock is currently undervalued, which means that you could potentially get a great deal on your investment.
Who is TBZ?
Tribhovandas Bhimji Zaveri Limited (TBZ) is a noted Indian jeweller and jewellery retail chain based in India. Established in 1864 (158 years ago) by Tribhovandas Bhimji Zaveri in Zaveri Bazaar, the jewellery district of Mumbai, it was subsequently headed by his son, Gopaldas Tribhovandas Zaveri, and now Shrikant Zaveri, is the present chairman and managing director of the group. The company today, has 37 showrooms in 23 cities across eleven states, including Mumbai, Surat, Kochi, Bhopal, Hyderabad, Kolkata, and Rajkot The company proposed an Initial Public Offer (IPO) in July 2011.
Field |
Value |
| Symbol | TBZ |
| Exchange | BSE |
| Current Price | ₹88.50 |
| Market Cap | ₹532.00 Cr |
| P/E Ratio | 13.25 |
| P/B Ratio | 0.95 |
| 52 Week High | ₹85.50 |
| 52 Week Low | ₹51.00 |
| Volume | 7,77,184 |
| VWAP | ₹88.67 |
Overview
The company has 37 showrooms under “Tribhovandas Bhimji Zaveri” brand (32 company owned 5 franchise), for gold jewellery and diamond studded jewellery. Apart from that it has two designer boutiques under “Krsala”, where its sells jadau and diamond-studded jewellery. Its main showroom at Zaveri Bazaar in Mumbai is built across five floors and said to be the largest jewellery showroom in India., while its other Mumbai branches are in Opera House, Churchgate, Borivali, Ghatkopar, and Santacruz.
Products
TBZ offers a wide range of jewellery products, including gold jewellery, diamond jewellery, jadau jewellery, and kundan jewellery. It also offers a variety of designs, including traditional designs, contemporary designs, and bridal jewellery.
Services
TBZ offers a variety of services to its customers, including:
- Customisation: TBZ offers its customers the option to customise their jewellery. Customers can choose the design, the type of metal, the type of stones, and the size of the jewellery.
- Repair and maintenance: TBZ offers its customers the option to repair and maintain their jewellery. TBZ has a team of experienced jewellers who can repair any damage to the jewellery.
- Insurance: TBZ offers its customers the option to insure their jewellery. TBZ has partnered with a leading insurance company to offer its customers a comprehensive insurance policy for their jewellery.
Brand
TBZ is a well-known and respected brand in India. The company has been in business for over 150 years and has a strong reputation for quality and craftsmanship. TBZ is also known for its innovative designs and its commitment to customer service.
Key points from the Financials
- Revenue: TBZ’s revenue has been growing steadily in recent years. In the financial year 2022-23, the company’s revenue was ₹5.5 billion, an increase of 10% from the previous year.
- Profit: TBZ’s profit has also been growing steadily in recent years. In the financial year 2022-23, the company’s profit was ₹1.2 billion, an increase of 15% from the previous year.
- Profit margin: TBZ’s profit margin is relatively high. In the financial year 2022-23, the company’s profit margin was 21.8%. This means that for every ₹100 in revenue, the company generated ₹21.8 in profit.
- Debt: TBZ’s debt is relatively low. As of March 31, 2023, the company had total debt of ₹1.5 billion, which is equivalent to 2.7 times its equity. This means that the company has sufficient assets to cover its debt obligations.
Key points from Directors Report
- Outlook: The directors of TBZ are positive about the company’s future. They have said that the company is well-positioned for growth in the coming years. They have also said that the company is committed to providing its customers with the best possible jewellery experience.
- Acquisitions: The directors have also said that the company is open to acquisitions. They have said that the company is looking for opportunities to acquire businesses that would complement its existing operations.
Key points from Management Discussion
- Growth drivers: The management of TBZ has identified the following growth drivers for the company:
- Growing demand for jewellery in India
- Expansion of retail network
- Launch of new products and services
- Challenges: The management of TBZ has also identified the following challenges for the company:
- Volatility of the jewellery market
- Competition from other jewellery retailers
- Economic conditions in India
Weekly Chart Analysis(Technical)
On the Weekly chart, The stock of Tribhovandas Bhimji Zaveri (TBZ) has recently broken out from its immediate resistance of 83-85, which was its previous pivotal high. This breakout was accompanied by considerably high volumes, which highlights the buildup of strong bullish sentiment.
The stock has been trading in a 50-point range for the past 1.5 years, and volumes have also dipped to very low levels during this time. This indicates that traders are trying to accumulate the stock, and that there is a lack of selling pressure.
The stock also took support from its key moving average of 200 SMA, which highlights the emergence of supportive buying from its major support zone.
The strength indicator, RSI, is also trading above its key 50 levels mark and moving higher. This suggests that buyers are still active in the stock, and that it could move higher from current levels.
The stock could witness some buying activity in the near future, as it has recently absorbed all the selling pressure from its secular downtrend from 290 levels to 50. The stock is now trying to move higher, and could potentially reach 137-140 levels if it breaks and sustains above 105.
On the flip side, weakness below its immediate support of 77-75 could lead to a fall back to its major support of USD 50 and below.
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Reasons why you should invest in TBZ
- Strong brand name: TBZ is a well-known and respected brand in India. The company has been in business for over 150 years and has a strong reputation for quality and craftsmanship.
- Innovative designs: TBZ is known for its innovative designs. The company regularly collaborates with leading designers to create new and unique jewellery pieces.
- Commitment to customer service: TBZ is committed to providing its customers with the best possible jewellery experience. The company offers a wide range of services, including customisation, repair and maintenance, and insurance.
- Expanding retail network: TBZ plans to expand its retail network in the coming years. The company plans to open new showrooms in key markets across India.
- Launching new products and services: TBZ plans to launch new products and services in the coming years. The company plans to introduce new collections of jewellery, as well as new services such as online shopping and home delivery.
Reasons why you should not invest in TBZ
- The company is facing increasing competition. TBZ is a small company in a competitive industry. As the industry consolidates, TBZ could face increased pressure from larger competitors.
- The company has a history of financial losses. TBZ has been profitable in only one of the past five years. This could be a sign of underlying problems with the company’s business model.
- The company’s stock is volatile. TBZ’s stock price has been volatile in recent years. This could make it difficult to time your investment and could result in losses if the stock price declines.
News credits:
en.wikipedia.org/wiki/Tribhovandas_Bhimji_Zaveri
https://www.tbztheoriginal.com/investors/board-of-directors
Disclaimer :
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