Eighty Jewellers Limited, part of the Anopchand Tilokchand group, which is established brand in the Jewellery sector since many decades in and around Chhattisgarh. The Company currently engaged as a master franchisee of Anopchand Tilokchand Jewellers Private Limited and involved in the trading of various jewelleries, ornaments, watches and luxury articles made out of gold, silver, diamonds and platinum studded with precious and semi-precious stones under the B2B model in the name 'Anopchand Tilokchand Jewellers'. Company's product portfolio includes rings, earrings, armlet, pendants, gajrahs, nose rings, bracelets, chains, necklaces, bangles, watches, luxury items and other wedding jewellery. Anopchand Tilokchand Jewellers Private Limited wherein they have been given rights to open stores in the Brand name of Anopchand Tilokchand Jewellers either directly or through sub franchisee arrangements. Currently, they sell all company's jewellery and related products to (i) a sub-franchisee store at Korba, Chhattisgarh and (ii) a retail store at Bilaspur, Chhattisgarh. they have entered into a sub-franchise agreement dated April 07, 2014 with M/s. Chhattisgarh Sales Corporation valid for a period of 9 years and further extendible for further 6 years, who operate the showroom located at Korba, Chhattisgarh. The jewellery and other related articles are sold under a B2B model as wholesaler to M/s Grand Bhagwati who operate the showroom located at Near CMD Chowk, Link Road, in front of Hotel Deep, Bilaspur. Company is currently operating on a B2B business Model and offer the customers a broad variety of jewelleries, ornaments, watches and luxury articles made out of gold, silver, diamonds and platinum studded with precious and semi-precious stones in order to cater to both regional and modern tastes. They also deal in diamond and silver jewellery and ornaments. They procure the majority stock of jewellery from the group Company Anopchand Tilokchand Jewelers Private Limited and Adorable Jewels India Pvt. Ltd. who undertake the major designing and job work of the products. But sometimes they also get the items manufactures from independent job workers depending upon the customer requirements and taste. As per financial performance, Eighty Jewellers Limited has posted total income/net profits of Rs 81.92 Cr / Rs 1.00 Cr (FY19), Rs 64.90 Cr / Rs 1.55 Cr (FY20), Rs 78.68 Cr / Rs 3.76 Cr (FY21) and Rs 44.36 Cr / Rs 0.83 Cr (H1 FY22). So company has shown zig-zag results. Company has posted an average EPS of Rs 3.43 and average RoNW of 33.88% for last three fiscals. Issue is priced at a P/B of 1.97 as per NAV of Rs 20.77 post issue. As per FY21 earnings on fully diluted equity post issue, asking price is at P/E of around 11.09 and as per annualised FY22 earnings P/E is 25.17. As per RHP, Comparison between listed peers are shown in above table. On BRLM's front, HEM Securities Limited Private Limited associated with this SME IPO and handled 13 IPOs in last 3 years. From last 10 IPOs, one opened below issue price and remaining above issue price or at par. As of now from last 10 IPOs, three are trading below and remaining are trading above issue price or at par. ( As on 28.03.22 ) As per financials Eighty Jewellers Limited, has shown zig-zag results, RoNW is 40.58% and P/E is respectively 11.09 and 25.17 as per FY21 and annualised FY22 earnings, which looks fully priced. The Jewellery sector is highly competitive and there is nothing special with this company. Performance of BRLM is good post listing. So we are giving NEUTRAL rating to this IPO.
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