Manoj Vaibhav Gems 'N' Jewellers Limited is a hyperlocal jewelry retail chain with a presence in the micro markets of Andhra Pradesh and Telangana with 13 showrooms (inclusive of two franchisee showrooms) across 8 towns and 2 cities. It has dedicated branded showrooms and has a strong rural market focus and a dedicated urban focus.
OBJECTS OF THE ISSUE
- To Finance the Establishment of the proposed 8 new showrooms.
- General corporate purposes.
Bharata Mallika Ratna Kumari Grandhi
Chairperson and Managing Director of the Company. She has 23 years of experience in jewellery industry, having been associated with the Company since 2001. Her knowledge of jewellery industry has contributed to the growth of the Company.
Currently, she looks after the overall operations and gives strategic directions furthering the growth of the Company.
Grandhi Sai Keerthana
Whole-time Director and CFO of the Company. She has been involved in the areas of marketing, operations and product development of the Company.
Currently, she is involved in managing the finances of the Company.
Mr. Gontla Rakhal
Chief Operating Officer of the Company and is responsible for the operations of the Company. He joined the Company on April 01, 2022. He has an overall experience of approximately 9 years. Prior to joining the Company. he worked as an Assistant Manager-Business Development in Vijay Engifab Private Limited.
Mr Raghunath Jonnavithula
General Manager – Marketing of the Company. General Manager –Marketing of the company. He has an overall experience of approximately 37 years. Prior to joining this Company, he has worked with Cipla Limited and Rexcel Pharmaceuticals Limited.
Mr. Bandari Shiva Krishna
Company Secretary and the Compliance Officer of the Company. He has been associated with the Company since 2014. His primary responsibility is to look after the overall secretarial matters of the Company. He has an overall experience of approximately 13 years.
COMPANY PROFILE
- Vaibhav Jewellers started its jewelry business as a proprietorship concern in the year 1994 from its first retail showroom in Visakhapatnam, Andhra Pradesh.
- It has a market share of ~4% of the overall Andhra Pradesh and Telangana jewelry market and ~10% of the organized market in these two states in FY2023.
- The Company has positioned itself as a retailer focused on ‘Relationships, by Design’ where it focuses on offering designs, high quality, transparency, and customer service to its customers.
- 77% of its retail showrooms are in Tier 2 and Tier 3 cities catering to the semi-urban and rural demand of Andhra Pradesh and Telangana.
- It has designed and developed a website for its online sales in addition to other online marketplaces.
- It procures jewelry on an outright basis from its list of suppliers as well as it supply bullion to job workers for creating varied designs of jewelleries as per its specifications.
COMPETITIVE STRENGTHS
- A key leading home-grown regional brand built on hyperlocal retail strategy. Early mover advantage in the state of Andhra Pradesh.
- Its focus of fortifying its business through Rural Market focus.
- Through its operating ethos of ‘Relationships, by Design’ it offer diverse product designs at varied price range.
- Its go-to-market strategy is its key business enabler thereby providing wider market reach. Experienced promoter and professional senior management team.
KEY STRATEGIES
- Expand in the untapped sections of the micro markets of Andhra Pradesh and Telangana. Focus on further strengthening its rural focus and improving its sales from existing showrooms. Deepen its customer relationships by enhancing focus on its Go-to-Market strategy.
- Focus on augmenting its Brand strength.
- Invest to enhance its product portfolio by offering a wider spectrum of designs.
KEY CONCERNS
- The Company is subject to fluctuations in prices or any unavailability of the raw materials that it uses in its products.
- It has significant working capital requirements.
- It operates in a competitive market and faces competition from other jewelry retailers. The business may be subject to fraud, theft, employee negligence, or similar incidents.
- The current geographic concentration of its operations exposes it to risks related to local economies, and regional downturns.
- The Company does not register its jewelry designs under the Designs Act, 2000 and it may fail to protect its jewelry designs.
COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)
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FINANCIALS (RESTATED CONSOLIDATED)
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OUTLOOK & VALUATION
Vaibhav Jewellers is a South Indian-based jewelry retail chain. It has a focus on rural and urban markets, with 13 stores currently. It is also planning to expand with eight new stores. The company offers diverse product designs. and it has reported consistent financial performance.
However, this business is subject to price fluctuations for raw materials and requires high working capital as well.
Secondly, it operates in a very competitive market.
The issue is coming at a P/E valuation of 43.69x which seems fully priced. So considering all these factors and current market sentiments, we will avoid this IPO. One may consider other listed peers for better opportunities.
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Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.
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