(i) Bharata Mallika Ratna Kumari Grandhi is a Promoter, Chairperson and Managing Director of the Company. She has 23 years of experience in jewellery industry, having been associated with the Company since 2001. She has completed her Higher Secondary School in the year 1987. Her knowledge of jewellery industry has contributed to the growth of the Company. Currently, she looks after the overall operations and gives strategic directions furthering the growth of the Company. She is also involved in strengthening the sales, implementing the marketing strategy and involved in the business development of the Company. In the year 2016 she was awarded “Best Women Entrepreneur of the year 2016” in an event organized by Prajadiary Magazine and also Woman Entrepreneur of the year”- GJTCI Excellence Award 2016. In 2018, she was awarded the Best Women Entrepreneur -Dare to Dream Awards-AP Chamber of Commerce. In the year 2021, she was awarded the Entrepreneur of the Year, Vysya Limelight Awards for Women 2021 by Vysya Limelight Inc. and was also ‘The Art of Jewellery’ for her contribution to the Gems and Jewellery Industry on International Women’s Day. She was awarded as the “Female Entrepreneur Award” by Red FM-93.5 on July 09, 2022.In the year 2023, she was awarded the ‘Industry Legend’ award by the Gem and Jewellery Export Promotion Council (GJEPC) during the India International Jewellery Show (IIJS) Premier show held on August 03, 2023 (ii) Grandhi Sai Keerthana is a Whole-time Director and CFO of the Company. She is a qualified Chartered Accountant from the Institute of Chartered Accounts of India(“ICAI”) and is also a member of ICAI. She holds a Degree of Bachelor of Commerce from Andhra University. She has been involved in the areas of marketing, operations and product developm ent of the Company. Currently, she is involved in managing the finances of the Company.On October 18, 2021, she was awarded Power of YoungJeweller Think Tank by Informa Markets and Hyderabad Jewellery, Pearl and Gem Fair in association with HJMA & Art of Jewellery as Knowledge partner at HICC, Novotel, Hyderabad.In the year 2023, she was awarded the ‘Forty under 40’ by the Gem and Jewellery Export Promotion Council (GJEPC) during the India International Jewellery Show (IIJS) Premier show held on August 05, 2023. (iii) Grandhi Sai Sindhuri is an Executive Director of the Company. She has been associated with the Company since 2012. She has completed her graduation in Bachelor of Dental Surgery from the Dr. NTR University of Health Sciences, Andhra Pradesh, Vijayawada in the year 2014. She looks after the HR and Administration activities of the Company.

A. Balance Sheet

Particular (In Million)	Mar-21	Mar-22	Mar-23	3MFY24
Equity Share Capital	97.70	97.70	390.80	390.80
Reserves	2,192	2,631	3,055	3,246
Borrowings	4,634	4,777	4,600	4,604
Trade Payables	589	886	380	682
Other Liabilities	518	603	2,353	1,906
Total Liabilities	5,741	6,267	7,333	7,192
Net Block	492	463	434	421
Capital Work in Progress	66	30	7	7
Investments	197	192	198	197
Other Assets	296	288	268	266
Total NC Assets	1,051	973	907	892
Receivables	198	200	244	251
Inventory	6,412	7,672	9,336	9,361
Cash & Bank	248	86	172	173
Other Assets	122	64	120	152
Face value	10	10	10	10

B. Profit & Loss Statement

Particular (In Million)	Mar-21	Mar-22	Mar-23	3MFY24
Sales	14,336	16,939	20,273	5,089
Raw Material Cost	8,147	9,766	12,126	3,100
Purchases of Stock In Trade	4,649	6,252	7,228	1,314
Change in Inventory	-61	-1,156	-1,726	4
Employee Cost	279	356	425	104
Other Expenses	514	672	790	193
Other Income	96	38	40	13
EBITDA	904	1,087	1,470	386
EBITDA Margin	6.31%	6.42%	7.25%	7.59%
Depreciation	88	87	86	20
Interest	425	416	426	108
Profit before tax	278	584	958	258
Tax	71	147	242	66
Net profit	207	437	716	192
NPM (%)	1.44%	2.57%	3.52%	3.77%

C. Cash Flow Statement

Particular (In Million)	Mar-21	Mar-22	Mar-23	3MFY24
Cash From Operating Activity
Profit From Operation	867	1,071	1,457	383
Receivable	-120	-6	-46	-9
Inventory	-81	-1,260	-1,664	-25
Payable	-417	297	-506	301
Loans And Advances	1	9	-2	-1
Other WC Items	-155	124	1,712	-500
Working Capital Changes	-772	-836	-505	-233
Direct Taxes	-98	-146	-259	-43
Net Cash Inflow from Operating Activity	-115	90	692	107
Cash from Investing Activity
Fixed assets purchased	0	-2	-13	-2
Fixed assets sold	74	0	0	0
Investments purchased	0	0	-8	0
Investment sold	0	4	0	0
Inter-corporate deposits	32	9	-17	-0.02
Other investing items	3	2	3	0.25
Net cash inflow from investing activities	109	13	-35	-2
Cash from Financing Activity
Proceeds from borrowings	688	242	26	52
Repayment of borrowings	-230	-99	-203	-48
Intrest paid fin	-376	-369	-380	-101
Other financing items	-40	-30	-31	-8
Net Cash Flow	37	-153	69	0.45

 

Name of the Company	Revenue (In Crore)	PAT (In Crore)	EPS ( in Rs)	P/E	CMP	Mcap (In Crore)
Manoj Vaibhav Gems 'N' Jewellers	2027	72	14.65	14.7	215	1050
Titan Company Ltd	40575	3,274	36.61	92.1	3339	2,96,450
Thangamayil Jewellery Ltd	3,153	80	29.1	28.7	1,244	3,430
Kalyan Jewellers India Ltd	14,071	432	4.2	48.2	229	23,598
Tribhovandas Bhimji Zaveri	2,394	40	6.02	15.3	113	753

* All the data is as per FY23.

Review And Recommendation of Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO by IZ team is 5/10

Business Overview

Vaibhav Jewellers is a regional brand predominantly active in South India, specifically in Andhra Pradesh and Telangana. The company has successfully carved a niche in these regions with 13 showrooms. Their market share is approximately 4% in the overall market and about 10% in the organized market of these two states. The company's focus on rural markets and emphasis on customer relationships has bolstered its brand image. Their online platform offers an additional channel for sales, extending their reach beyond regional boundaries.

Object of the Issue

The company aims to use the IPO proceeds for: 1. Establishing 8 new showrooms, covering capital expenditure and inventory costs. 2. General corporate purposes. The total number of shares issued includes 9,767,442 as a Fresh Issue and 2,800,000 as an Offer for Sale.

Financials

Profit & Loss The company has shown consistent growth in sales from 1433 Cr in Mar-21 to 2027 Cr in Mar-23. Profit margins have improved from 1.44% to 3.52% during the same period, indicating better operational efficiency. Cash Flow Cash inflow from operating activities has improved, moving from a negative figure to a positive one.

Peer Comparison

When compared to peers like Titan and Kalyan Jewellers, Vaibhav Jewellers has lower revenues. Their the P/E ratio at 14.7 is considerably lower than Titan but higher than Thangamayil Jewellery Lt

Analysis and Opinion

1. Strengths: Vaibhav Jewellers has a strong regional presence, an early-mover advantage, and a diversified customer base. It has also shown consistent financial growth and profitability. 2. Risks: As a regional player, the company faces challenges in scaling up to match the footprint of larger, established brands. Additionally, the business is highly dependent on economic cycles and consumer sentiment. 3. Valuation: With an issue price of ₹204 to ₹215 per equity share, the valuation seems reasonable given the company’s financials and growth prospects. 4. Market Position: The company is well-positioned in its target markets, but competition from larger brands remains a threat. However, its focus on rural markets could be a differentiating factor. Overall, the IPO seems to be a good opportunity for investors looking for a regional play with growth potential. However, it is crucial to consider the risks and market competition before making an investment decision.

Manoj Vaibhav Gems 'N' Jewellers Limited 47-15-8, V Square, Zone-A, Opp: TSR Complex, Station Road, Dwarakanagar, Visakhapatnam - 530016 Phone: + (91) 89 1663 7777 Email: cs@vaibhavjewellers.com Website: https://www.vaibhavjewellers.com/