Equirus Capital foresees a 42% potential upside in Thangamayil Jewellery (TJL) by March 2025, despite its significant growth over the past year. The brokerage firm attributes this expected rise to TJL's strong visibility and robust financials, which could lead to a premium valuation compared to current levels. Initiating coverage with a 'LONG' recommendation, Equirus Capital sets a target price of ₹1,935 for the stock. Although TJL has surged by 169% in the past year, it has declined by 9% year-to-date in 2024. Nevertheless, it remains 12% below its all-time high of ₹1,544.95 reached on December 28, 2023, and has surged by 188% from its 52-week low of ₹472.50 recorded on February 27, 2023. Equirus Capital believes that TJL is well-positioned to capitalize on industry-driven tailwinds and its robust expansion plans. The transition from unorganized to organized sectors, coupled with increased hallmarking coverage in Tamil Nadu, is expected to drive demand growth. Additionally, a narrowing price difference between unorganized and organized players is anticipated to steer consumers towards organized and larger players like TJL. The company's strategic presence in most tier II and III cities/districts of Tamil Nadu is seen as a significant advantage in this regard. With established back-end processes and infrastructure, supported by a strong balance sheet, Equirus Capital predicts a robust compound annual growth rate (CAGR) of 26% in revenue, 29% in EBITDA, and 33% in PAT from FY23 to FY26E for TJL.