Eight Jewellers SME IPO: Should you subscribe?

0
12
Eight Jewellers
Rate this post

Eight Jewellers Limited was established in 2010, and the company is engaged in the business operation as a master franchisee and distributor of the Anopchand Tilokchand Jewellers Private Limited. The company’s primary and core business is trading various jewellery, artefacts, ornaments, watches, and other luxury articles. It also carries out its trading in precious gemstones and platinum, diamonds, gold, and silver. The company’s product portfolio includes designing and making rings, gajrahs, earrings, pendants, armlets, nose rings, watches, luxury items, bracelets, necklaces, chains, bangles, and other ornaments and accessories that have been used in wedding jewellery. The company has a range of products in high-end, mid-market, and value market segments.

The company’s base is located in Chhattisgarh. The company has also opened up many showrooms under the franchise of the Anopchand Tilokchand Jewellers. The company’s business operation is of a B2B business model. It earns revenue by selling the jewellery products to a local sub-franchisee store located at the Korba. The competitive strengths of the company are as follows:

  • The company carries out the use of an already established brand name for its business operation. It helps the company attain a better reach and market presence, thus streaming their financial performance to a better scale.
  • Eighty Jewellers Limited has a very cordial relationship with its clients and customers. It helps them have a long-term establishment and the addition of other clients and customers.
  • The company has been highly benefitted from the experience of the promoters.
  • Eighty Jewellers Limited has an in-house design, development, Innovation, and Product range team that helps them make great quality products.
  • The prime Location of their showrooms has highly benefited the company.

Apply in Eight Jewellers IPO with UPSTOX

While on the negative and some threats aspects, the company has been engaged in a highly competitive and fragmented segment. The Jewellery segment has been fully flooded with competitors where the company faces competition from Titan and many other well-established jewellery brand houses. In addition, it makes the sector challenging because of the less organized but growing firms shaping their business revenue model. On the other hand, the company has also been inconsistent in terms of its financial parameters and performance.

OBJECTS OF THE IPO ISSUE:

  • Prepayment of all the company’s loans, which be availed on a consolidated basis. 
  • To meet corporate targets. 
  • To fund the working capital requirement.  

BUSINESS STRATEGY OF THE COMPANY:

The business strategy of the company is as follows:

  • The company aims to expand its retail network and increase the focus, promotion, and sales of its products online.
  • Eighty Jewellers Limited also aims at continuing the development of the clientele.
  • The company also focuses on its clients’ requirements and customized results to meet the purity and quality of the products.
  • The company aims to build up a professional, growing, and sustainable organization.

EIGHTY JEWELLERS IPO DETAILS:

Eighty Jewellers Limited recently got approval from SEBI to float their IPO in the market. The company’s IPO is a fixed price issue type IPO where the listing of the IPO will be under the SME platform at the BSE. The company also stated that it would utilize around Rs from the funds raised from the IPO offer. 9.00 crores for the working capital requirement and the other 85 Lakhs for the general corporate purpose Post allotment of the equity shares been present in the IPO, the company’s current fully paid-up equity capital will be around Rs. 10.50 crores. The IPO issue offer constitutes around 26.47% of the company’s total post-issue fully paid-up equity capital. Hence, on the IPO Offer’s valuations, the company is aiming to attain a market capitalization of Rs. 41.82 crores.

IPO Opening DateMarch 31, 2022
IPO Closing DateApril 5, 2022
Issue TypeFixed Price Issue type IPO
Face ValueRs. 10 per equity share
IPO PriceRs. 41 per equity share
Market LotOne lot of 3000 equity shares
Minimum Order Quantity3000 equity shares
Minimum Order PriceRs. 123,000
Maximum Order Quantity3000 equity shares
Maximum Order PriceRs. 123,000
Listing AtBSE SME platform
Issue Size2,700,000 equity shares of the company, which aggregates to Rs. 11.07 Crores
Fresh Issue2,700,000 equity shares of the company, which aggregates to Rs. 11.07 Crores
Retail Shares Offered50% of the net offer
NII (HNI) Shares Offered50% of the net offer
Basis of Allotment DateApril 8, 2022
Initiation of RefundsApril 11, 2022
The Credit of Shares to Demat AccountApril 12, 2022
IPO Listing DateApril 13, 2022

VALUATIONS OF THE COMPANY:

The valuations of the company are as follows:

  • Average EPS = Rs. 3.43  
  • Average RoNW = 33.88%. 
  • IPO Issue offer is been priced at P/B Value = 3.04 
  • NAV = Rs. 13.49 with a post-IPO, NAV = Rs. 20.77.
  • The company currently has been trailing at a valuation of P/E = 25.15 

FINANCIAL PARAMETRES:

PARAMETERMARCH 21MARCH 20YoY %
   Earnings Per Share (Rs)45.2418.63142.80
   CEPS (Rs)5.282.44116.00
   DPS (Rs)0.000.000.00
   Book NAV/Share (Rs)111.4766.2368.31
   Tax Rate (%)24.2226.23-7.66
   Core EBITDA Margin (%)8.065.6642.56
   EBIT Margin (%)8.305.8143.01
   Pre-Tax Margin (%)6.353.2694.75
   PAT Margin (%)4.812.41100.06
   Cash Profit Margin (%)5.052.8477.99
   ROA (%)11.885.27125.64
   ROE (%)50.9232.7455.53
   ROCE (%)30.3920.0951.26
   Asset Turnover (x)2.472.1912.79
   Sales/Fixed Asset (x)39.8533.0420.61
   Working Capital/Sales (x)8.469.78-13.47
   Fixed Capital/Sales (x)0.030.03-17.09
   Receivable days5.259.83-46.58
   Inventory Days116.13139.18-16.56
   Payable days23.8446.66-48.92
   EV/Net Sales (x)0.150.25-39.19
   EV/Core EBITDA (x)1.804.06-55.59
   EV/EBIT (x)1.854.36-57.48
   EV/CE (x)0.380.52-26.70
   Net Sales Growth (%)21.36-20.91202.17
   Core EBITDA Growth (%)66.1626.26151.93
   EBIT Growth (%)73.5535.30108.33
   PAT Growth (%)142.8054.96159.84
   EPS Growth (%)142.8054.96159.84
   Total Debt/Equity (x)1.332.84-53.13
   Current Ratio (x)1.471.2914.13
   Quick Ratio (x)0.280.12143.67
   Interest Cover (x)4.252.2886.46
Particulars (in Lakhs)September 2021March 2021March 2021March 2019
Sales4,4147,8316,4538,159
Purchase of Material3,9486,4886,0616,650
Change in Inventories170336-398789
Employee Benefits Expense57998556
Other Expenses90287347384
Operating Profit149621358280
OPM %3.38%7.93%5.55%3.43%
Other Income22383833
Interest55143157131
Depreciation7192842
Profit before tax110497210141
Total Tax Exps271205540
Net Profit83377155100
NPM %1.88%4.81%2.40%1.23%
No. of shares101.99101.99101.99101.99
ParticularsFor the year ending with the amount in Lakhs
 30 September 2131 March 2131 March 2031 March 19
Total Assets3,398.903,197.303,174.942,745.60
Total Revenue4,436.057,868.896,490.638,192.05
Profit After Tax83.06376.94155.25100.19

COMPARISON WITH PEERS:

Name of the CompanyFace ValueEPSPERoNWBook ValueSales (In Lakhs)PAT (In Lakh)
Eighty Jewellers Limited105.038.1540.58%12.397,831377
Patdiam Jewellery Ltd106.4511.477.12%90.566,756278
Radhika Jeweltech Ltd1010.816.713.50%69.313,7002,600
DP Abhushan Ltd1017.72132.90%50.51,21,5002,700
PC Jewellers Ltd10-2.871.46%892,66,9006,100
Kalyan Jewellers India Ltd102.227.8-0.25%27.98,57,300-600

COMPANY PROMOTERS:

The promoters of the company are as follows:

  • Mr. Tilok Chand Bardia
  • Mr. Nikesh Bardia,
  • Mr. Nitin Kumar Bardia
Pre-Issue Share Holding100%
Post Issue Share Holding

COMPANY CONTACT INFORMATION:

Eighty Jewellers Limited
Anup Plaza Sadar Bazar,
Raipur,
Chhattisgarh, 492001
Phone: +91-0771-2234737
Email: info@eightyjewels.in
Website: https://eightyjewels.in/

EIGHTY JEWELLERS IPO REGISTRAR:

Bigshare Services Pvt Ltd
Phone: +91-22-6263 8200
Email: ipo@bigshareonline.com
Website: http://www.bigshareonline.com

EIGHTY JEWELLERS IPO LEAD MANAGER(S):

LEAVE A REPLY

Please enter your comment!
Please enter your name here