Utssav CZ Gold Jewels Limited is in the business of designing, manufacturing, wholesaling and exporting of 18 Karat, 20 Karat and 22 Karat CZ Gold jewellery. The Company specializes in light weight production of cubic zirconia (CZ) gold and rose gold casting jewellery. They manufacture and offer wide collection of products such as Rings, Earrings, Pendants, Bracelets Necklaces, Watches and Broaches etc. Company's forte lies in crafting exquisite CZ casting gold jewellery and designer pieces, tailored to the preferences of today's youth. Cubic zirconia (CZ) is a synthetic gemstone known for its similarity to diamonds. These stones are popularly known as 'American Diamonds'. The Company specializes in Gold jewellery studded with CZ stones, combining the elegance of gold with the dazzling beauty of cubic zirconia. They cater to a wide range of customers by offering high-end, medium-range and affordable CZ gold jewellery, all hallmarked by the Bureau of Indian Standards (BIS). With a team of 15 CAD designers on the payroll, they develop approximately 400 designs per month on a regular basis. The manufacturing facility spans over 8,275 square feet area in Andheri East, Mumbai, equipped to produce variety of jewellery with precision and efficiency. As on date, they have an installed manufacturing capacity of 1,500 kg per annum. They have long standing relationships with jewellery retailers such as D.P. Abhushan Limited, Kalamandir Jewellers Limited, and numerous other esteemed clients. The customers are spread across seventeen (17) states and two (2) union territories in India and two (2) countries abroad. As per financial performance, Utssav CZ Gold Jewels Limited has posted total income / net profits of Rs 120.30 Cr / Rs 1.61 Cr (FY21), Rs 123.42 Cr / Rs 3.33 Cr (FY22), Rs 239.71 Cr / Rs 7.14 Cr (FY23) and Rs 277.33 Cr / Rs 10.73 Cr (31.01.24 FY24). So as per previous financials data, company has shown good growth. Company has posted an average EPS of Rs 2.95 and average RoNW of 29.84% for last three fiscals. Issue is priced at a P/BV of 2.77 as per NAV of 39.74 as on Post issue. 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 78.45, 36.65 and 20.33 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Choice Capital Advisors Private Limited is associated with this SME IPO and handled 2 IPOs in last 2 years. From last 2 IPOs, all opened above issue price or at par on the day of listing. As of now from last 2 IPOs, all are trading above issue price. ( As on 29.07.24 ) As per financials, Utssav CZ Gold Jewels Limited has shown good growth, RoNW is 38.17% and P/E is respectively 78.45, 36.65 and 20.33 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced, but company has done private placement on 18.04.24 at a price of Rs 82.5/- and also latest financial info is not given by company, which generate doubts. Company is engaged in the business of designing, manufacturing, wholesaling and exporting of CZ Gold jewellery, which is highly fragmented and competitive business segment. 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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