Shubhlaxmi Jewel Art Limited IPO

Apply 0
Avoid 0

(i) The group derives from Jewellery retailing and wholesaling and has experience of over 40 years in the trade. Jesingbhai branched out into the field of jewellery retailing in the year 1971 by opening its first store in Bhavnagar named Jesingbhai Jewellers and Shubhlaxmi jewellers(Group of Jesingbhai Jewellers). They originally formed as a partnership firm on 13 July 2013 in Gujarat.

(ii) They are engaged in the Retail and Wholesale business of Jewellery made up of from Gold, Diamond and Platinum studded with precious and semi-precious stone. They cater to High-end, Mid-market and value market segment. The ornaments are also made on order basis and same is made by third-party vendors.

(iii) They have a showroom in Bhavnagar which was setup in the year 2013 having the total area of 27000 Sq. Ft. The company is looking to open a manufacturing facility in Bhavnagar to cater to the demand of local customers by 2019 for which the company has taken 962 Sq.ft of land on rent.

(iv) Financial Performance

Revenue was Rs 46.84 Cr, Rs 43.43 Cr, and Rs 47.43 Cr for 2017-18, 2016-17 and 2015-16 respectively.

EBITDA was Rs 2.64 Cr, Rs 2.62 Cr and Rs 2.44 Cr for 2017-18, 2016-17 and 2015-16 respectively.

PAT was Rs 82.43 lakhs, Rs 64.80 lakhs and Rs 36.78 lakhs for 2017-18, 2016-17 and 2015-16 respectively.

Objects of the Shubhlaxmi Jewel Art Limited IPO:

Objective of Shubhlaxmi Jewel Art Limited IPO are: 1. Funding the working capital requirements 2. General corporate purposes

Shubhlaxmi Jewel Art Limited IPO Details:

Open Date: Nov 22 2018
Total Shares: 2,504,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 6.26 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 26 Per Equity Share
Listing At: NSE Emerge

Promoters And Management:

Promoters of Shubhlaxmi Jewel Art Limited Company are: Mr. Narendrasinh Chauhan Mr. Jitendrakumar Chauhan

Financials of Shubhlaxmi Jewel Art Limited IPO:

Particulars For the year/period ended (in Rs Lacs)
31-May-2018 31-Mar-18 31-Mar-17 31-Mar-16 31-Mar-15
Total Assets 1,773.03 1,781.95 1,480.17 1,543.42 1,524.08
Total Revenue 203.57 4,684.91 4,343.54 4,743.38 4,514.00
Profit After Tax 3.70 82.43 64.80 36.78 129.22

Recommendation on Shubhlaxmi Jewel Art Limited IPO:

Review and Recommendation of Shubhlaxmi Jewel Art Limited IPO from IZ team is: 1/10

Lead Manager of Shubhlaxmi Jewel Art Limited IPO:

  1. Pantomath Capital Advisors Private Limited

Registrar of Shubhlaxmi Jewel Art Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Shubhlaxmi Jewel Art Limited Shop No. 1, Ground Floor, Bhavnagar - 364002, Phone No. +91 278 2562600 Email id cs@shubhlaxmiltd.in Website: www.shubhlaxmiltd.in

Discussion on Shubhlaxmi Jewel Art Limited IPO:

    Jewellery sector companies has not perform well in past.

    As of March 2018, lets us check leverage and liquidity position.

    The Company has debt( Long-term and Short-term) is 8.67 Cr against an equity of 5.54 Cr. So D/E is 1.56( High).

    Current Ratio of 1.79 ( Manageable)

    Conclusion: The company has a high debt based on the March 2018 figure. However, after IPO the D/E would be less than 1.

    The company is basically a Trading company who deals in Jewellery items made up from Gold, Diamond and Platinum. So no moat in the business.

    Last 3 years Average EPS is 1.05. On that basis, the asking P/E is 24.76.