Motisons Jewellers Limited is a Jewellery retail player with a history of more than 2 decades in the jewellery industry having experienced entrepreneurs as the Promoters with more than 20 years of experience. The jewellery business includes the sale of jewellery made of gold, diamond, kundan and sale of other jewellery products that include pearl, silver, platinum, precious, semi-precious stones and other metals. The other offerings include gold and silver coins, utensils and other arti-facts. They commenced the business through a partnership firm 'M/s Motisons Jewellers' in 1997 which was subsequently converted into public limited company in 2011 and currently have presence across multiple prominent locations in Jaipur, Rajasthan. Company started the jewellery business in 1997 with a single showroom in Jaipur, Rajasthan. The first outlet, famously known as the 'Traditional Store' was set up amidst the famous lanes of the busiest Johri Bazaar, renowned jewellery hub in the heart of the city. This Johri Bazaar showroom displaying gold and diamond jewellery was approx. 304 sq. ft. in area which was expanded to 1355 sq. ft. by 2002 with growth in the business. They have, since then, expanded the network of showrooms and the product portfolio and currently operate 4 showrooms under the 'Motisons' brand, located across the city of Jaipur, Rajasthan. The flagship store 'Motisons Tower' is located at the high street of Tonk Road, Jaipur, Rajasthan. The showroom at Tonk Road spans in an area of 16,002.06 Sq Ft and has 3 floors with a dedicated floor space for silver, gold, and diamond jewellery respectively. The most recent outlet, opened in the year 2021, is situated in the affluent neighbourhood in the southwestern part of Jaipur, Rajasthan at Vaishali Nagar. Company primarily source finished jewellery from third party suppliers located across India. This includes all types of jewellery made of gold, diamond and other precious and semi-precious stones. Additionally, to cater to the increasing demand in the market, They also engage artisans on job work basis and have the own manufacturing facilities located in Jaipur, Rajasthan for diamond and gem stone studded jewellery. They outsource the work of making ornaments to various artisans with whom They have developed relationships. They offer a large variety of handcrafted jewellery, which are designed and manufactured by the in-house designers in close collaboration along with skilled local craftsman located across the country. To ensure optimum prices and mitigate the risk of suppliers' concentration, They procure raw materials from various suppliers across the country. This procurement process enables to offer a wide range of products. In 2011, They had launched online platform, www.motisonsjewellers.com and online sales commenced from 2018 where They cater to younger and more digitally savvy customers. The total revenue from online sales amounted to Rs. 1.41 Lakhs and Rs 0.66 Lakhs for June 30, 2023 and in Fiscal 2023 and 2022. They intend to leverage the increasing engagement with a digitally savvy consumer base to increase revenues for the jewellery sold online. As per financial performance, Motisons Jewellers Limited has posted total income / net profits of Rs 213.06 Cr / Rs 9.67 Cr (FY21), Rs 314.47 Cr / Rs 14.75 (FY22), Rs 366.81 Cr / Rs 22.20 Cr (FY23) and Rs 86.76 Cr / Rs 5.48 Cr (upto Q2 FY24). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 2.72 and average RoNW of 13.93% for last three fiscals. Issue is priced at a P/BV of 2.50 as per NAV of 21.98 as on 30.06.23. If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 36.72, 24.39 and 24.71 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. Holani Consultants Private Limited : This is 7th IPO from this BRLM. From last 6 IPOs, one opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 6 IPOs, all are trading above issue price or at par. ( As on 11.12.2023 ) As per financials, Motisons Jewellers Limited has good growth, RoNW is 16.15% and P/E is respectively 36.72, 24.39 and 24.71 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced. Company is a Jewellery retail player, which is highly competitive and fragmented segment. Performance of BRLM is good. So, we give "SUBSCRIBE FOR LISTING GAINS" rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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