Motisons Jewellers has a product portfolio of 3,00,000+ jewellery designs, including a wide range of gold, diamond
and other jewellery products available at different price points.
In addition to selling products at showrooms, it also sells products through its online platform
They have 4 stores, all in Jaipur .
80% revenue was from their flagship store.
Gold jewellery contributed 82% of revenue, diamond and silver jewellery 9% and 8% each.
Motisons Jewellers reported a revenue of Rs 86.76 crore and a net profit of Rs 5.48 crore for 3 months ended June 30, 2023.
The company’s revenue was Rs 366.81 crore and net profit at Rs 22.20 crore the financial year ended on March 31, 2023.
In the past, promoters have been investigated and there were allegations of betting in IPL matches.
They have also been party to investigation by SEBI, NSE and CBI,for certain dealings.
Inventory turnover poor compared to peers.
Net proceeds of IPO for repayment of existing borrowings availed by the company from scheduled commercial banks; funding the working capital requirements and general corporate purposes.
Anchor Book:
I do not have a positive view on Motisons Jewellers IPO due to promoters concerns, concentration risk (all stores in Jaipur). However issue appears to have strong speculative force and being a small size issue it easy for operators to play in the scrip.
Holani Consultants is the lead manager of the Motisons Jewellers IPO. They have a good track record in managing SME IPOs.
Link Intime India Private Ltd is the registrar for the issue.
Motisons Jewellers IPO is coming at a pE of 25x (annualized FY24 earnings)
I intend to apply in the Motisons Jewellers IPO. It is rather weak on fundamentals but looks to have some under current and appears speculative.
