RBZ Jewellers Limited is one of the leading organised manufacturers of gold jewellery in India, specializing in Antique Bridal Gold Jewellery and distribute to reputable nation-wide retailers and significant regional players in India. They hold approximately 1% of total organized wholesale gold jewellery market in India. They have a history of more than fifteen (15) years in the jewellery industry. Company designs and manufactures a wide range of Antique Bridal Gold Jewellery which consists of Jadau, Meena and Kundan work and sell it on a wholesale and retail basis. They also process and supply Antique Bridal Gold Jewellery on job work basis to national retailers. The customer base in wholesale business includes reputed national, regional and local family jewellers spread across 20 States and 72 cities within India. The Company also operates its retail showroom under the brand name 'Harit Zaveri' and is an established player in Ahmedabad. They offer jewellery for bridal, occasional and daily wear at various price range in the retail showroom. They also export the jewellery to Middle East region. They carry out the manufacturing operations from a well-equipped and modern facility situated at Ahmedabad, Gujarat having advanced technologies in casting, laser and 3-D printing. The retail showroom is situated in the prominent area of Ahmedabad, Gujarat. Company has a well-equipped and modern gold jewellery manufacturing facility situated at Ahmedabad, Gujarat having capability to design as well as manufacture gold jewellery under one roof. The manufacturing facility has an area ad measuring 23,966 sq. ft and is owned by the company. The retail showroom spread over 11,667 sq. ft. is situated in Satellite area, Ahmedabad, Gujarat in the vicinity where other large retailers have their presence. They own an area ad measuring 10,417 sq. ft. of the showroom space and area ad measuring 1,250 sq. ft. is occupied on lease basis. Company started its journey with a work force of only eight (8) persons and They have over a period of time, increased the work force to 189 employees. They also have permitted capacity of 250 artisans for the manufacturing facility. The artisans are well trained and skilled craftsmen who help them in manufacturing quality gold jewellery. In order to cater to the ever-increasing demand in the market, they have an established network of external skilled artisans to whom they outsource the work as per the requirement of the Company. Despite the increase in the gold prices in 2023, They have managed to boost the revenue in quantitative terms (excluding bullion sales) by achieving an overall volume growth of 12.44% in Fiscal 2023 compared with Fiscal 2022. As per financial performance, RBZ Jewellers Limited has posted total income / net profits of Rs 107.71 Cr / Rs 9.75 Cr (FY21), Rs 252.53 Cr / Rs 14.41 Cr (FY22), Rs 289.63 Cr / Rs 22.33 Cr (FY23) and Rs 125.52 Cr / Rs 12.09 Cr (upto Q2 FY24). So as per previous financials data, company has shown average growth. Company has an average EPS of Rs 5.84 and average RoNW of 21.86% for last three fiscals. Issue is priced at a P/BV of 2.87 as per NAV of 34.86 as on 30.09.23. 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 27.77, 17.91 and 16.54 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. Arihant Capital Markets Limited : This is 2nd IPO from this BRLM. From last one IPO, all opened above issue price or at par on the day of listing. As of now, from last one IPO, all are trading above issue price or at par. ( As on 14.12.23 ) As per financials, RBZ Jewellers Limited has shown average growth, RoNW is 24.15% and P/E is respectively 27.77, 17.91 and 16.64 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced. Company is in business of manufacturing and retailing of gold jewellery, which is highly competitive and fragmented segment. BRLM has very limited IPO history. So, we give "SUBSCRIBE WITH CAUTION" rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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