Advit Jewels IPO GMP: Jaipur-based company Advit Jewels’ maiden IPO is set to open for subscription on June 23 and closes on June 25. The company has fixed a price band of Rs 130–138 per share for the public offer. The IPO comprises an entirely fresh issue of 1.19 crore shares, aggregating to Rs 165.15 crore.
Of the total IPO proceeds, Rs 65 crore will be deployed towards debt repayment and another Rs 65 crore towards incremental working capital requirements. The remainder will be utilised to fund the rollout of the retail showrooms.
Brokerage SMIFS has reviewed the company’s performance and underlined several points for investors on the upcoming offer. It also shared an outlook and whether you should subscribe or not.
Organized Manufacturing Under One Roof: Merging Tradition with Technology:
- Revenue grew at a CAGR of 63.7% during FY23-FY25, reaching ₹1,249.4 million in FY25.
- Gross profit margin improved from 28.0% in FY23 to 32.9% in FY25, reflecting a favourable product mix and operational efficiencies.
- EBITDA increased from ₹127.7 million in FY23 to ₹371.5 million in FY25, with margins expanding to 29.7%.
- PAT grew at a CAGR of ~56.2% during FY23-FY25, supported by improving scale and operating leverage.
- Maintained healthy profitability with PAT margin of 20.3%, RoE of 35.9% and RoCE of 24.1% in 9MFY26.
According to multiple grey market premium tracking platforms, the Advit Jewels IPO is currently commanding a GMP of Rs 65, indicating positive investor sentiment. Based on this premium, the estimated listing price is expected to be around Rs 203. As of June 22, the expected gain per share is around 47 per cent.
However, investors must note that GMP is provided for informational purposes only and does not guarantee IPO listing prices. Investors should not rely solely on GMP; consult a financial advisor and analyse company fundamentals before investing.
SMIFS underlined that Advit Jewels is well positioned to capitalize on the growing demand for premium handcrafted jewellery, supported by its integrated manufacturing capabilities, portfolio of over 2,000 designs, strong presence in the Kundan, Polki and Jadau jewellery segment, and expanding pan-India customer base.
The company’s future growth is expected to be driven by multiple catalysts including the launch of a 27,790 sq. ft. flagship showroom in Jaipur, rollout of a franchise-led asset-light expansion strategy across Tier I and Tier II cities, increasing contribution from higher-margin B2C sales, continuous product innovation and enhanced digital engagement initiatives. Further, the company possesses significant manufacturing headroom within its existing facility, providing substantial scope to scale production and support future demand without major capacity expansion.
Further, SMIFS added that the IPO proceeds are expected to strengthen the balance sheet through debt reduction and working capital support, improving financial flexibility and supporting inventory-led growth. Financially, the company has delivered strong execution with revenue and PAT growing at CAGRs of 63.7% and 56.2%, respectively, during FY23-FY25, while maintaining healthy profitability and return ratios.
Advit Jewels IPO: Should You Subscribe?
SMIFS noted that at the issue price, the company is valued at approximately 17x FY25 earnings, which appears attractive considering its growth prospects, profitability profile and long-term scalability.
“Given the multiple growth levers in place and the potential for revenues and earnings to scale significantly as capacity utilization improves and the retail business ramps up over the next few years, we recommend subscribing to the issue as a long-term investment,” SMIFS stated.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
