Thangamayil and TBZ Offer a Better Value Than PNGS Reva!

Last Updated on February 24, 2026 by Rajat Bhati

The Indian stock market is currently experiencing a “gold rush,” not just in commodities but also in the IPO space. The gems and jewellery sector, traditionally a bastion of unorganized, family-run businesses, is rapidly formalizing. The latest headline-maker, PNGS Reva Diamond Jewellery, is entering the fray with a specialized, diamond-centric model and a 190-year-old legacy promoter in P. N. Gadgil & Sons.

While every IPO appears dazzling to a new investor, looking beyond the glitz to the financials reveals the real picture. PNGS Reva offers high margins that are hard to ignore. However, PNGS Reva IPO peer comparison with well-known companies like Tribhovandas Bhimji Zaveri (TBZ) and Thangamayil Jewellery shows that these are available at a huge valuation gap.

PNGS Reva IPO Peer Comparison: A Quantitative Duel

In an efficient market, PNGS Reva IPO valuation is the ultimate arbiter of truth. To understand why PNGS Reva is priced for “perfection” while its peers are priced for “value,” we must look at the hard numbers from the FY25 financial cycle.

The most staggering data point is the Price-to-Sales (P/S) ratio. PNGS Reva is valued at 4.74 times its sales, whereas TBZ is trading at a massive discount of 0.35x. This means that for every rupee of revenue generated, the market is valuing PNGS Reva nearly 13 times higher than TBZ. While PNGS has higher margins, a 13x valuation multiplier suggests an extreme premium that leaves little room for error.

TBZ: Offers “Deep Value!”

Tribhovandas Bhimji Zaveri (TBZ) is currently the “unsung hero” of the sector. As a 150-year-old family-run business, it was a pioneer in BIS hallmarking and certified solitaires.

• The Valuation Steal: With a P/E of 6.93 and a PEG Ratio of 0.14, TBZ is fundamentally “mispriced” by the market. A PEG ratio below 1.0 is a buy signal; a 0.14 is a rarity.
• Growth Momentum: Despite being a legacy player, TBZ reported a QoQ Sales growth of 54.3%. This proves that the brand still resonates with the modern Indian consumer.
• Asset Play: At a Price to Book Value of 1.45, TBZ offers a significant margin of safety. If it were to trade even at half the P/S of PNGS Reva, the stock price would see a multifold jump.

Thangamayil: The King of the “Gold Coast”

While PNGS Reva struggles with regional concentration, Thangamayil Jewellery (TMJL) has built a fortress in Tamil Nadu—a state that consumes 40% of India’s total gold.

• The Efficiency Engine: Thangamayil’s 56.2% annual sales growth is a testament to its operational scale.
• Sustainable Valuation: At a PEG of 1.07, its valuation is perfectly in sync with its earnings growth. Unlike PNGS, which is a specialized niche player, Thangamayil’s diversified mix (Gold, Silver, Diamond) protects it from the volatility of a single commodity.
• Regional Moat: Operating 34+ stores in high-consumption districts, its cluster-based manufacturing model keeps costs low and inventory fresh.

PNGS Reva vs Thangamayil vs TBZ vs Senco: Quality of Earnings

A company’s profit is only as good as the cash it brings in. This is where the PNGS Reva story starts to show cracks.

• Negative Cash Flow: In H1FY26, PNGS Reva reported Negative Cash Flow from Operations (CFO) of -INR 55 cr. While the Profit After Tax (PAT) looked healthy, the business was actually consuming cash rather than generating it.
• The Contrast: Established players like Senco and Thangamayil have matured working capital cycles that allow them to fund expansions through internal accruals rather than just debt or IPO proceeds.

The Store-Economics Trap: SIS vs. COCO

PNGS Reva’s high 30.8% EBITDA margins are due to its current operational structure.

• The SIS Benefit: Currently, 32 out of 34 stores are Shop-in-Shop (SIS) units inside parent PNGS stores. This keeps rental and overhead costs artificially low, boosting margins.
• The COCO Risk: The IPO proceeds are earmarked for 15 new stores under the COCO (Company Owned Company Operated) model. These stores will bear the full brunt of high-street rentals and higher manpower costs.
• Margin Compression: As PNGS transitions from the SIS model to the COCO model, its industry-leading margins are likely to face significant compression, potentially dropping to levels closer to its peers.

Inventory and Geographic Risks

• The 360-Day Deadlock: PNGS Reva holds inventory for approximately 360 days (a full year). This “dead” capital is exposed to the extreme volatility of diamond and gold prices. In contrast, Thangamayil and Senco manage far more efficient inventory turns.
• Maharashtra Dependency: A staggering 97.5% of PNGS Reva’s revenue comes from Maharashtra. One regional regulatory change or economic slowdown could derail its entire financial performance. Both TBZ and Senco have significantly better geographic diversification.

The Disruption Threat: Natural vs. Lab-Grown (LGD)

PNGS Reva is a 100% natural diamond play. However, the industry is shifting. The Lab-Grown Diamond (LGD) market in India is growing at a CAGR of nearly 15%, aided by a 0% import duty on seeds.

As LGDs become more mainstream for daily wear and gift categories, natural diamond brands like Reva will find it increasingly difficult to maintain premium pricing. Legacy brands like TBZ and Thangamayil, with their gold-heavy portfolios, are naturally hedged against this technological shift.

Final Verdict

The PNGS Reva IPO is a “Premium Niche” play with high margins but even higher risks and a demanding valuation (P/S of 4.74). It is a story of “potential” that has already been priced into the stock.

• For Deep Value: TBZ remains the top pick. At a P/E of 6.93, the market is ignoring its 150-year brand and massive revenue base. It is a classic “Mean Reversion” play.
• For Growth at a Reasonable Price (GARP): Thangamayil is the gold standard. Its dominance in Tamil Nadu and 56% sales growth make it a reliable wealth creator.
• For Scale and Trust: Senco Gold offers the best middle-ground with a P/E of 10.9 and Pan-India aspirations.

In the jewellery business, the most expensive piece isn’t always the best investment. While PNGS Reva glitters with its diamond-studded margins, the real “value” for investors is found in the seasoned, cash-generating, and attractively priced veterans of the industry.

Disclaimer: This article is based on available RHP data and brokerage reports as of Feb 2026. Consult a certified financial advisor before investing.