Tribhovandas Bhimji Zaveri Ltd.

Current price

146.55

Sector

Jewellery

No of shares

66719900

52 week high

222.80

52 week low

125.20

BSE Sensex

27975.86

Nifty

8492.30

Average Volume

150907

BSE Code

534369

NSE Symbol

TBZ

Company Overview

Tribhovandas Bhimji Zaveri Limited is engaged in manufacturing/trading and selling jewellery in India. Tribhovandas Bhimji Zaveri Ltd offers gold, diamond, precious and semi-precious stone studded, silver, and platinum jewellery; loose diamond solitaires; loose precious and semi-precious stones; and jadau jewellery. It provides rings, earrings, pendants, bracelets, necklaces, chains, watches, bangles, and other jewellery products for various weddings, festivals, and personal occasions, as well as for daily wear. As of August 8, 2014, it operated 28 stores with space of 88,093 sq ft spread in 22 cities in Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Kerala, Seemandhra, Telangana, West Bengal, Rajasthan, and Jharkhand. Tribhovandas Bhimji Zaveri Ltd was founded in 1864 and is based in Mumbai, India.

The design and manufacture of their products is done either in-house or by third parties. All of their showrooms trade under the name of 'Tribhovandas Bhimji Zaveri'. The company offers their customers a wide variety of jewellery from across India in order to cater to regional tastes. They also offer jewellery from various parts of the world such as Italy, Turkey and Thailand. They also customize jewellery for individual needs. They offer their jewellery across different price points so as to maximize their potential customer base. The company has their own manufacturing facilities for diamond-studded jewellery. In addition, they outsource the production of jewellery as well as purchase jewellery from third parties.

They introduced independent administration of each showroom by professionals. In the year 2004, the company commenced retailing 100% pre-hallmarked jewellery. In July 24, 2007, the company was formally incorporated as a private limited company.

Tribhovandas Bhimji Zaveri Ltd plans to open an additional 43 showrooms (25 large format high street showrooms and 18 small format high street showrooms) by the end of Fiscal 2015, which would give us a total of 57 showrooms (with a total carpet area of approximately 150,000 sq. ft.) in 43 cities across 14 states. The current market capitalisation stands at Rs 940.75 crore.

Share Holding Pattern

Category

No. of Shares

Percentage

Promoters

49,459,775

74.13

Foreign Institutions

10,576,211

15.85

General Public

3,653,210

5.48

Other Companies

2,786,577

4.18

Foreign - NRI

140,494

0.21

Financial Institutions

45,472

0.07

NBFC and Mutual

Funds

29,740

0.04

Others

28,421

0.04

Financial Details
  • Market Cap (Rs Cr) – 980.45

  • Company P/E (x) – 17.20

  • Industry P/E (x) – 28.64

  • Book Value (Rs) – 67.10

  • Price / BV (x) – 2.19

  • Dividend (%) – 22.50 %

  • EPS (TTM) – 8.25

  • Dividend Yield (%) – 1.53

  • Face Value (Rs) – 10

Industry Overview

The Gems and jewelry sector in India plays a significant role in the Indian economy, contributing around 6-7 per cent of the country’s GDP. One of the fastest growing sectors, it is extremely export oriented and labour intensive. The government of India has declared the sector as a focus area for export promotion based on its potential for growth and value addition. The government has recently undertaken various measures to promote investments and to upgrade technology and skills to promote brand India in the international market.

According to a report by Research and Markets, the Jewelry Market in India is expected to grow at a CAGR of 15.95 per cent over the period 2014-2019.The gold jewelry exports from India were US$ 554.45 million in December 2014, while silver jewellery exports were US$ 148.49 million, according to the latest data released by the Gems and Jewelry Export Promotion Council (GJEPC).

India is the world’s largest cutting and polishing centre for diamonds, with the cutting and polishing industry being well supported by government policies. Moreover, India exports 95 per cent of the world’s diamonds, as per statistics from the Gems and Jewellery Export promotion Council (GJEPC). The industry is projected to generate up to US$ 35 billion of revenue from exports by 2015. The cumulative foreign direct investment (FDI) inflows in diamond and gold ornaments in the period April 2000-December 2014 were US$ 476 million, according to Department of Industrial Policy and Promotion (DIPP).

The Reserve Bank of India (RBI) has liberalized gold import norms. With this, star and premier export houses can import the commodity, while banks and nominated agencies can offer gold for domestic use as loans to bullion traders and jewelers. A FICCI-Technopak report estimates that gems and jewellery exports will grow to USD 58 billion by 2015. It also estimates that the domestic market for gems and jewellery will touch USD 35 billion to USD 40 billion by 2015.

Balance Sheet

 

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

Sources Of Funds

 

 

 

 

 

Total Share Capital

66.70

66.67

50.00

50.00

10.00

Equity Share Capital

66.70

66.67

50.00

50.00

10.00

Reserves

380.97

343.40

109.58

57.10

58.46

Networth

447.67

410.07

159.58

107.10

68.46

Secured Loans

500.69

410.08

191.33

196.93

195.97

Unsecured Loans

62.76

3.92

12.24

11.69

0.00

Total Debt

563.45

414.00

203.57

208.62

195.97

Total Liabilities

1,011.12

824.07

363.15

315.72

264.43

Application Of Funds

 

 

 

 

 

Gross Block

122.46

108.59

63.25

59.36

41.31

Less: Accum. Depreciation

28.41

20.96

14.10

10.39

0.00

Net Block

94.05

87.63

49.15

48.97

41.31

Capital Work in Progress

1.59

1.64

0.71

0.00

2.11

Investments

3.03

3.03

3.03

2.98

0.01

Inventories

1,111.88

1,027.38

501.90

425.43

286.55

Sundry Debtors

2.86

1.76

3.00

8.37

3.06

Cash and Bank Balance

72.85

31.85

5.34

9.07

2.87

Total Current Assets

1,187.59

1,060.99

510.24

442.87

292.48

Loans and Advances

29.42

27.93

19.43

18.18

13.10

Total CA, Loans & Advances

1,217.01

1,088.92

529.67

461.05

305.58

Current Liabilities

277.93

324.79

194.19

180.44

81.54

Provisions

26.64

32.35

25.22

16.85

3.02

Total CL & Provisions

304.57

357.14

219.41

197.29

84.56

Net Current Assets

912.44

731.78

310.26

263.76

221.02

Miscellaneous Expenses

0.00

0.00

0.00

0.00

0.00

Total Assets

1,011.11

824.08

363.15

315.71

264.45

Contingent Liabilities

10.77

4.32

14.50

14.50

0.00

Book Value (Rs)

67.11

61.51

31.92

21.42

68.46

Profit and Loss Account

 

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

Income

 

 

 

 

 

Sales Turnover

1,824.34

1,658.34

1,385.47

1,193.93

884.90

Net Sales

1,824.34

1,658.34

1,385.47

1,193.93

884.90

Other Income

6.62

5.88

1.61

0.54

0.36

Stock Adjustments

90.81

480.34

78.36

88.40

58.00

Total Income

1,921.77

2,144.56

1,465.44

1,282.87

943.26

Expenditure

 

 

 

 

 

Raw Materials

1,608.55

1,827.96

1,222.42

1,095.51

814.70

Power & Fuel Cost

5.03

3.51

2.22

2.09

0.00

Employee Cost

61.41

55.10

45.75

40.52

30.72

Miscellaneous Expenses

107.44

104.88

71.38

57.67

50.36

Total Expenses

1,782.43

1,991.45

1,341.77

1,195.79

895.78

Operating Profit

132.72

147.23

122.06

86.54

47.12

PBDIT

139.34

153.11

123.67

87.08

47.48

Interest

46.35

21.49

31.48

22.82

19.61

PBDT

92.99

131.62

92.19

64.26

27.87

Depreciation

9.99

8.04

5.26

4.00

3.07

Profit Before Tax

83.00

123.58

86.93

60.26

24.80

PBT (Post Extra-ord Items)

83.00

123.58

86.93

60.26

24.80

Tax

27.94

38.56

29.73

20.85

7.85

Reported Net Profit

55.06

85.00

57.19

39.42

16.94

Total Value Addition

173.89

163.50

119.35

100.28

81.08

Equity Dividend

15.01

15.00

5.00

0.00

0.00

Corporate Dividend Tax

2.55

2.55

0.81

0.00

0.00

Per share data (annualised)

 

 

 

 

 

Shares in issue (lakhs)

667.04

666.67

500.00

500.00

100.00

Earning Per Share (Rs)

8.25

12.75

11.44

7.88

16.94

Equity Dividend (%)

22.50

22.50

7.50

0.00

0.00

Book Value (Rs)

67.11

61.51

31.92

21.42

68.46

Dividend History

Index and Company Price Movement Comparison

Technical Indicators

Symbol

Value

Action

RSI(14)

62.868

Buy

STOCH(9,6)

51.653

Neutral

STOCHRSI(14)

93.647

Overbought

MACD(12,26)

12.830

Buy

ADX(14)

22.953

Buy

Williams %R

-28.303

Buy

CCI(14)

108.4129

Buy

ATR(14)

21.7964

Less Volatility

Highs/Lows(14)

6.5464

Buy

Ultimate Oscillator

47.184

Sell

ROC

17.805

Buy

Bull/Bear Power(13)

20.4760

Buy

Important Ratios (YoY)
  • PBIT – 6.70 v/s 8.36

  • RoCE – 12.79 v/s 17.60

  • RoE – 12.85 v/s 29.95

  • Net Profit Margin – 3.00 v/s 5.10

  • Return on net worth – 12.29 v/s 20.72

  • D/E Ratio – 1.26 v/s 1.01

  • Interest Cover – 2.79 v/s 6.75

  • Current Ratio – 0.91 v/s 0.95

  • Reserves – 380.97 cr v/s 343.40

  • PAT – 55.06 cr v/s 85.00 cr

  • Total assets – 1011.11 cr v/s 824.08

  • Net sales – 1824.34 cr v/s 1658.34 cr

  • Book Value – 67.11 v/s 61.51

Simple Moving Average

Days

BSE

NSE

30

161.97

162.02

50

163.71

163.73

150

158.81

158.87

200

164.69

164.79

Investment Rationalize
  • Tribhovandas Bhimji Zaveri Ltd (TBZ Ltd.) is one the largest and well reputed branded Jewellery Group of the country with a market capitalization of Rs.980 crores and sales Rs.1824 crores.

  • Company is being able to sustain a 15.8% CAGR of Revenue even in the adverse market conditions.

  • Increase in working women population and increase in demand of branded jewellery will help the company to increase the sales.

  • Very aggressive expansion plans ie opening jewelleries even in tier 2 and tier 3 cities and functioning of 57 showrooms by the end of year 2015 will give wide coverage for the company. Company will be able to capitalize on increase in disposable income, rapid growth of Indian middle class population and consideration of gold as an investment and savings avenue in a healthy manner.

  • According to a recent report by FICCI on the Indian Gems and Jewellery industry, the domestic market for the sector was pegged at Rs.2,51,000 Crores in 2013 and has the potential to touch Rs.5,00,000 – Rs.5,30,000 Crores by 2018.

  • New products and design from different parts of the world such a Italy, Turkey, Thailand, Singapore, etc, will add cutting edge for the products.

  • Online selling and proposed changes in gold import will add to the growth and advantage of the company to a large extent.

  • Price to Sales Ratio of the company stands at 0.54%, which means the stock is available at discounted price and under performance of the company in the recent bull run refers to huge upward movement in the stock when the economic condition improves.

Post a Comment
Error message
Error message
Error message

 

DISCLAIMER

This report is only for the information of our customers. Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. ATS and/or its group companies do not as assume any responsibility or liability resulting from the use of such information.

 

 

<