Thangamayil Jewellery: SSSG at 35.9%, Diamond Volume Up 27%

THANGAMAYL Thangamayil Jewellery (NSE : THANGAMAYL) is a Madurai-based jewellery retailer operating primarily in Tamil Nadu. It sells gold ornaments, diamond jewellery and silver articles through a regional store network, serving customers who buy gold as an investment alongside those seeking lighter contemporary pieces. What happened: In Q2 FY27, income from operations rose 39.6% year on year to Rs 2,387.6 crore. Net profit was broadly flat at Rs 59.5 crore, as higher employee, advertising and other expenses offset revenue growth. Same-store sales growth was 35.9% in the first half of FY27, up sharply from 10.3% in H1 FY26. Volume of gold ornaments sold was broadly flat at 1,500 kg. Diamond volumes rose 27% to 5,296 carats. Why it matters: Gold prices averaged Rs 1.5 lakh per 10 grams in Q2 of FY27, up 40% year on year. Thangamayil's SSSG of 35.9% outpaced Kalyan at 20% and Titan at 21%, though on a much smaller base. Diamond volume growth indicates a gradual shift toward studded and lighter jewellery items, which typically carry better margins than plain gold. What I am watching: Whether net profit margins recover as the cost base stabilises. Revenue growth is strong but flat PAT signals operating expenses scaling faster than profits. Thangamayil has very deep Tamil Nadu roots; geographic expansion beyond this would be an execution test. My stance: Thangamayil trades at 34 times earnings, a discount to Kalyan at 43.5 times and well below Titan at 62.1 times. ROE is 28.1%, the highest among the three regional jewellers compared here. The valuation discount and strong returns profile make it an interesting combination, if margins recover alongside revenue growth. I do not hold a position in Thangamayil Jewellery at the time of writing. This is not investment advice.