i. Tarachand Mehta is a Promoter and Managing Director of the Company. He has 4 decades of experience in jewellery industry. He has completed matriculation. His knowledge of the jewellery industry has contributed to the growth of the Company. Currently, he looks after the overall operations and gives strategic directions furthering the growth of the Company. He is also involved in strengthening the sales, implementing the marketing strategy and involved in the business development of the Company. ii. Goutham is a Promoter and Executive Director of the Company. He has 25 years of experience in jewellery industry, having been associated with the Company since 1997. He has completed Bachelors of Commerce (B.Com) from the University of Madras. He has played a key role in expanding the company's retail and wholesale presence and introducing wider varieties of jewellery for attracting a broader range of customers. He is entrusted with the responsibility of looking after the finances, expansion, overall management and operations of the company. iii. Bijal Durgavale is a member of the Institute of Company Secretaries of India. At present, she is working as a Company Secretary of AVI Products India Limited. She also holds a Master of Commerce (M. Com) degree from Mumbai University in Accounts. She has eleven Years’ Experience in Secretarial and Compliance related activities

Name of the Company	Revenue (In Crore)	PAT (In Crore)	EPS ( in Rs)	P/E	CMP	Mcap (In Crore)
Khazanchi Jewellers Ltd	481	8	3.05	45.8	140	346
Deep Diamond India Limited	8	1.3	0.39	15.6	6.1	20
Eighty Jewellers Limited	94	1	1.39	32.3	45.0	46
Moksh Ornaments Limited	447	6	1.14	9.72	11.1	60

* All The data is as per FY23.

Review and Recommendation of Khazanchi Jewellers SME IPO by IZ team is 2/10

Brief About the Company:

1. Prominent player in the Indian jewellery industry with a strong presence in wholesale and retail sectors. 2. Specializes in gold jewellery, diamond jewellery, precious stones, and fancy jewellery, including bullion (coins and bars). 3. Rich history spanning over three decades in the Indian jewellery industry 4. Promoters have over 25 years of expertise in the field.

Strengths:

1. Long-standing presence and experienced promoters with deep industry knowledge. 2. Wide range of jewellery products catering to different customer preferences. 3. Commitment to high-quality products and maintaining the highest standards. 4. Physical showroom for direct customer experience and purchases.

Weaknesses:

1. Limited showroom presence with only one location. 2. Facing competition in the Indian jewellery market. 3. Vulnerable to economic fluctuations and commodity price changes. 4. Seasonal sales dependency on festivals and weddings.

InvestorZone Takeaways

1. The company had ~700 Cr sales in Fy17 but in 2023 the sales ~480 Cr. That means there is no growth in the business. 2. In the last 6 years I.e. from 2017 to 2022, the NPM was around 0.20% to 0.60%. However, in the FY23, it has increased to 1.66%. How that happens we do not know? 3. As on 31.03.2023, total debt on books is ~85 Cr and Equity is just ~30 Cr. So, high D/E. 4. The company is raising 95 Crores from the IPO to setup a new showroom ( 8 Cr) and to buy inventory ( 20 Cr ), 55 Cr will go to augmenting working capital requirement of existing show-room. 5. The company has converted loan to equity in May-2023 at Rs.35 per share and IPO is coming at Rs.145 per share. 6. The IPO is priced at P/E of 45x and recently listed Senco Gold P/e is 18x.

Khazanchi Jewellers Limited No: 130, NSC Bose Road, Sowcarpet, Chennai-600 079 Phone: +91 44 4201 5915 Email: info@khazanchi.co.in Website: http://www.khazanchi.co.in/