The Tribhovandas Bhimji Zaveri (TBZ) stock, which has been on the upswing in last few trading sessions, gained nine per cent to Rs 203 on Wednesday, on expansion plans. About 8.5 lakh shares changed hands in the counter on the BSE.

In the last six months, TBZ opened four showrooms — in Pune, Mumbai, Vadodara, Kolkata. Earlier this month, it opened its new showroom at Vapi, Gujarat. TBZ now has 19 showrooms in 12 cities. The stock registered its life-time high of Rs 211 on October 22.

The company was listed on the exchanges in May after a successful initial public offering priced at Rs 120 a share. The jewellery retailer plans to open 26 large-format high-street showrooms and 18 small-format outlets by FY’15.

Word of caution

Expectations of a pick-up in gold jewellery sales during the Diwali season have also lit up the fortunes of most jewellery company stocks. Investor preferred to place their bets on TBZ as it was a recent entrant in the stock market and reasonably priced, said analysts.

However, the sharp spurt in gold prices and Government taxes have depressed jewellery sales in recent months. The RBI on Tuesday directed banks not to give loans for purchase of gold ornaments and coins. The move will also put an end to the tie-ups between jewellers and banks to fund customer purchases. This could impact jewellery stocks, including TBZ, they added.

Foreign institutions have reduced their stake to 9.30 per cent in September quarter from 11.85 per cent at the end of May.

Tata AIA Life Insurance Co Ltd Whole Life Mid Cap-Equity Fund and Credit Suisse (Singapore) Ltd either have exited or reduced their holdings below one per cent in the company during the September quarter.

> suresh.iyengar@thehindu.co.in

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