Moksh Ornaments Stock Jumps 17% Following ₹120 Crore Order from Lalithaa Jewellery Mart
Moksh Ornaments Limited, a micro-cap gold ornament manufacturing company, has seen a significant surge in its stock price after securing a major order worth ₹120 crore from Lalithaa Jewellery Mart, one of the largest jewelry chains based in South India. This deal is set to strengthen the company’s position in the gold jewelry market, and its share price has responded positively, with a notable 17% jump in a single day.
Share Price Movement
Shares of Moksh Ornaments opened at ₹13.55, which was the same as the previous day’s closing price. However, the stock soon surged, reaching an intraday high of ₹15.83, marking a rise of 16.84%. By the end of the trading session, the stock closed with a gain of 9.59%, reflecting growing investor confidence following the announcement of the new order. Despite the volatility, the stock’s upward movement has drawn the attention of market watchers and investors alike.
Moksh Ornaments, with a market capitalization of ₹125 crore, is a relatively small player in the jewelry manufacturing sector, but this order has the potential to significantly boost its revenue in the coming months. The company’s market cap and stock price movement have caught the attention of traders, indicating a promising outlook for the future.
Order Details
The ₹120 crore order from Lalithaa Jewellery Mart, which is one of the prominent jewelry chains in South India, is set for the supply of 22-carat gold ornaments. This large order will be executed over the next three to four months, with Moksh Ornaments expected to deliver a wide range of gold jewelry, further enhancing its reputation in the industry. The collaboration with a leading jewelry retailer like Lalithaa Jewellery Mart is expected to elevate Moksh Ornaments’ visibility in the market, potentially paving the way for future orders from other large retail chains.
Financial Highlights
Moksh Ornaments has seen strong financial growth, which is reflective of its robust business model and efficient operations. In the second quarter of FY24, the company reported a 25.17% year-on-year (YoY) increase in revenue, moving from ₹126.57 crore in Q2FY24 to ₹158.44 crore in Q2FY25. On a quarter-on-quarter (QoQ) basis, the company’s revenue grew by 15.80%, from ₹136.82 crore in the previous quarter.
Moreover, Moksh Ornaments has shown impressive profitability growth. The company’s net profit for the same period saw a 33.33% YoY increase, rising from ₹1.80 crore to ₹2.40 crore. On a QoQ basis, net profit increased by 7.62%, from ₹2.23 crore in the previous quarter. These strong results highlight the company’s ability to execute its business strategies effectively, leading to both top-line and bottom-line growth.
Updates from the Management
In a statement to the media, the management of Moksh Ornaments shared their plans for the future. The company is focused on product innovation and responding to changing market trends. Traditionally known for its gold chains and bangles, Moksh Ornaments is now expanding its product portfolio to include rose-gold chain bangles and lighter-carat gold products to cater to the preferences of the next-generation customers. The company is particularly focusing on 18-carat gold jewelry due to the rising gold prices, which has led to an increased demand for more affordable gold options.
The management also mentioned that the company is working on expanding its domestic marketing network, collaborating with major retail chains, and looking to expand internationally. With plans to tap into global markets, Moksh Ornaments aims to strengthen its footprint on the international stage, taking advantage of the rising demand for high-quality, affordable gold jewelry.
About the Company
Moksh Ornaments Limited, established in 2012, is a Mumbai-based jewelry company specializing in the design, manufacture, and wholesale distribution of gold jewelry. The company primarily deals in gold bangles, malas (traditional necklaces), and lightweight jewelry, blending traditional craftsmanship with modern trends. It caters mainly to wholesalers and retailers across India, building a strong reputation in the jewelry market.
Moksh Ornaments is committed to delivering high-quality products and has built a solid base of loyal customers in the domestic market. With its recent focus on international expansion, the company looks poised for significant growth in the coming years.
Financial Ratios
Below are some of the key financial ratios of Moksh Ornaments:
| Financial Metric | Value |
|---|---|
| Market Cap | ₹126 Cr. |
| Current Price | ₹15.0 |
| High / Low | ₹25.8 / ₹11.8 |
| Stock P/E | 16.6 |
| Book Value | ₹7.17 |
| Dividend Yield | 0.00 % |
| ROCE (Return on Capital Employed) | 14.9 % |
| ROE (Return on Equity) | 11.6 % |
| Face Value | ₹2.00 |
| Debt to Equity | 0.83 |
| Industry PE | 32.1 |
| Debt | ₹51.3 Cr. |
| PEG Ratio | 3.07 |
| Intrinsic Value | ₹9.38 |
| Graham Number | ₹11.9 |
| Piotroski Score | 4.00 |
Conclusion
The latest order from Lalithaa Jewellery Mart marks a significant milestone for Moksh Ornaments. This deal not only boosts the company’s order book but also strengthens its position in the competitive gold jewelry market. With a strong financial track record, an expanding product portfolio, and a clear strategy for growth, Moksh Ornaments is certainly a company to watch in the coming months. As the market reacts positively to this news, investors are paying close attention to the stock, and the company’s strong fundamentals make it an intriguing option for long-term investment.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.