Accumulate Tribhovandas Bhimji Zaveri; target of Rs 120: Prabhudas Lilladher

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26 Aug, 2025 12:21

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TBZ reported 9.6% SSG and Rs70mn PAT led by ~10% volume growth and improved footfall in wedding season. TBZ has incorporated a new marketing strategy whereby 1) making charges have been rationalised in specific segments like plain gold jewellery, premium and studded jewellery and 2) marketing campaign has been started to connect with consumers. TBZ Mgt has indicated 15 store openings in FY19 which includes 10 owned stores, indicating reasonable level of success with last year's 4 stores in Malls. Although the move is positive, we remain cautious as target of adding 30 stores in next two years (base of 37 stores) need support from good demand scenario. TBZ is back on the dividend list (7.5%) after a gap of 2 years, which shows Mgt confidence in growth and sustaining cash flows.  Balance sheet remains healthy with flat inventories and just 4% increase in debt.

Outlook We estimate 37% PAT CAGR over FY18-20 and value the stock at 20xFY20 EPS of Rs6.0 thus assigning target price of Rs120. Retain Accumulate.

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