SMR Jewels Limited is an Ahmedabad-based jewellery company engaged in the design, marketing, and sale of high-value gold and diamond ornaments. The company operates a design-led business model, conceptualizing over 500 unique designs annually to cater to diverse customer preferences in the bridal, festive, and daily wear segments. Its operations are currently heavily concentrated in Gujarat, which accounted for over 74% of revenue in Fiscal 2025. The company follows an asset-light production model, outsourcing its manufacturing requirements to highly skilled third-party artisans and job workers. This allows the company to focus on its core strengths of in-house design and quality control while avoiding heavy capital investment in manufacturing infrastructure. Currently, its jewellery is showcased at a single showroom in Ahmedabad and through various national and international trade exhibitions. Operationally, the company manages one showroom in Ahmedabad and serves a Business-to-Business (B2B) client base. Its products are delivered to wholesalers, retailers, boutiques, and showrooms across India, as well as showcased at industry exhibitions. The company maintains a high level of customer satisfaction, reporting a total of 209 customers and 76 suppliers in the most recent stub period. Looking forward, the company is using IPO proceeds for a major expansion plan that includes the construction of a dedicated Jewellery Studio in Ahmedabad. This studio is intended to institutionalize the company's exhibition success by providing a permanent, high-security environment for private showcases and curated events. Additionally, the infusion of fresh working capital will support significantly higher inventory levels needed to sustain its growing order book and expansion into new market segments. As per financial performance, SMR Jewels Limited has posted total income / net profits of Rs 67.53 / 0.91 Cr (FY23), Rs 124.52 / Rs 3.85 Cr (FY24), Rs 263.25 Cr / 10.41 Cr (FY25) and Rs 308.72 Cr / 18.56 Cr (Upto Q3 FY26). So as per previous financials data, company has shown good growth, but sudden rise in net-profit just before IPO raises concerns. Also net-cash flow is negative for FY23, FY24 and 9M FY26. Company has an average EPS of Rs 4.75 and average RoNW of 62.45% for last three fiscals. Issue is priced at a P/BV of 4.63 as per NAV of Rs 29.13/- as on 31.12.25 If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 65.49, 24.19 and 10.18 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Wealth mine Networks Limited is associated with this IPOs, and has handled 2 IPOs in last three fiscal years. From last 2 IPOs, all opened below issue price or at par, on the day of listing. As of now, from last two IPOs, all are trading below price or at par. (as on 20.05.26) As per financials, SMR Jewels Limited has shown good results, RoNW is 43.14% and P/E is 65.49, 24.19 and 10.18 respectively as per FY24, FY25 and annualised FY26 earnings. So, issue looks fully priced. But sudden rise in net-profit just before IPO, negative cash flow and increase in inventory raise concern. Company is engaged in the design, marketing, and sale of high-value gold and diamond ornaments, which is highly competitive business segment. Performance of BRLM is poor post listing. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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