By DP Abhushan has quickly become a standout performer in the Indian stock market, capturing the attention of investors and analysts alike. Since its listing in November 2020, the jewellery stock has seen a meteoric rise, becoming one of the most notable multibagger stocks in recent years. With a staggering 1100 percent increase post-listing, DP Abhushan’s performance has been remarkable, continuing to attract bullish sentiment from market participants.
The company’s Q1 2024 results, announced on Thursday, further solidified its strong market position. DP Abhushan’s shares opened with an upside gap, reaching an intraday high of ₹1,440 per share, just ₹14 shy of its all-time high of ₹1,454.05 on the NSE. Despite hitting this peak, the stock couldn’t maintain its momentum and faced a wave of profit-booking, dipping to an intraday low of ₹1,349.95. However, the stock found support at lower levels, bouncing back to trade around ₹1,380 apiece on the NSE.
DP Abhushan reported total revenue of ₹505 crore for Q1 2024, marking a year-on-year increase of approximately 7% compared to ₹471 crore in the same quarter of the previous fiscal year. The company also reported an impressive EBITDA of ₹38 crore, up 52% from ₹25 crore in Q1FY24. This growth led to an EBITDA margin expansion to 8%, doubling the margin from the previous quarter. The company’s Profit After Tax (PAT) also saw significant growth, reaching ₹25 crore for Q1FY25, compared to ₹16 crore in Q1FY24, representing a robust 60% year-on-year increase.
Santosh Kataria, Managing Director of DP Abhushan, expressed satisfaction with the company’s performance.
We are delighted to report an outstanding performance for the quarter, highlighted by healthy revenue growth of 7% and an impressive profit increase of 60%.
Kataria noted that the Bhopal store emerged as a pivotal revenue driver, achieving an exceptional 18% year-on-year growth. Ujjain and Indore stores also contributed significantly, with 17% and 12% growth rates, respectively.
Kataria shared an optimistic outlook for the company. He emphasized efforts to bolster business operations and strategically expand in key markets such as Madhya Pradesh, Rajasthan, Chhattisgarh, and Gujarat. By tapping into these emerging markets with growing purchasing power, DP Abhushan aims to strengthen its market position further.
The company also plans to increase the share of diamond-studded jewellery, currently at 6%, by offering high-quality items, particularly for wedding wear, thereby enhancing its gross margins by commanding premium making charges.
The stock’s performance has been equally impressive. In the past month, DP Abhushan’s share price has ascended by 15%, while over the last six months, it has delivered around 100% returns to its positional shareholders. Over the past year, the stock has skyrocketed from ₹271.40 to ₹1,380 per share, marking a phenomenal rise of over 400%. This substantial growth underscores the strong market sentiment and investor confidence in DP Abhushan’s future prospects.
Despite the recent profit-booking, the continued bullish outlook suggests that investors remain optimistic about the company’s long-term growth. The stock’s resilience and recovery after intraday lows indicate strong support levels, making it a compelling option for investors looking to capitalize on the jewellery sector’s growth.
