Motisons Jewellers IPO Financial Analysis

Motisons Jewellers, a jewelry retail business from Rajasthan, is launching its IPO on December 18, 2023. Here's a summary of the company's business model, strengths, weaknesses, and growth potential to assist investors in making informed decisions.

Motisons Jewellers Overview

Motisons Jewellers Ltd, established in October 1997, specializes in selling a variety of jewelry, including gold, diamond, Kundan, pearl, silver, platinum, and other precious metals. They offer a diverse range of designs for all ages and occasions, from everyday wear to weddings and festivals. The main store, Motisons Towers in Jaipur, is a spacious three-floor facility dedicated to silver, gold, and diamond jewelry.

Motisons Jewellers serves men, women, and children, providing unique products suitable for special gifting occasions. The company has several subsidiaries, such as Motisons Shares Private Ltd, Bholenath Real Estate Private Ltd, Godawari Estates Private Ltd, Motisons Buildtech Private Ltd, and Shivansh Buildcon Private Ltd.

IPO Strengths:

1. Well-placed showrooms in strategic locations.
2. Diverse range of products at different prices and in various categories.
3. Established heritage and legacy spanning over two decades.
4. Efficient systems to manage and reduce risks.

IPO Weaknesses:

1. Overreliance on sales of gold jewelry.
2. Limited online presence and digital outreach.
3. Concentrated geographical presence primarily in Jaipur.
4. Lack of regular dividend distribution.

IPO Details
Motisons Jewellers IPO is scheduled from December 18 to December 20, 2023. The stock has a face value of ₹10 per share, and the IPO's price range is ₹52 to ₹55 per share.

Financial Performance of Motisons Jewellers

In FY23, the company's total assets rose to ₹336.51 crore, total revenue reached ₹366.81 crore, and profit after tax was ₹22.20 crore. The earnings per share (EPS) is 3.42.

Key Ratios
In the fiscal year 2023, Muthoot Microfin reported a Return on Equity (ROE) of 16.16%, Return on Assets (ROA) of 6.60%, and debt to equity stand at 1.20

Motisons Jewellers Vs Peer

Motisons Jewellers has a Price-to-Earnings (P/E) ratio of 16.08, its valuation seems reasonable when compared to peers. Renaissance Global stands out with a high P/E of 48 and a low EPS of Rs. 2.13

Company	Revenue (₹ in lakhs)	Face Value / Equity Share (₹)	P/E	EPS (Basic) (₹)	ROE(%)	ROCE (%)
Motisons Jewellers Limited	36619.61	10.00	16.08	3.42	16.16%	30.04%
Goldiam International Limited	30344.78	2.00	27.55	5.22	22.20%	25.58%
DP Abhushan Limited	1,97,512.02	10.00	29.09	20.33	28.40%	34.89%
Thangamayil Jewellery Limited	3,15,255.00	10.00	24.08	58.13	22.37%	26.36%
Renaissance Global Limited	1,35,481.09	10.00	48.00	2.13	3.71%	7.91%

Promoters of Motisons Jewellers IPO

1. Mr. Sandeep Chhabra
2. Mr. Sanjay Chhabra
3. Ms. Namita Chhabra
4. Ms. Kajal Chhabra

Presently, the promoters maintain a 92% stake in the company. Post-IPO listing promotors' ownership will reduced to 66%.

Final Words

The Motisons Jewellers IPO Review suggests that despite focusing on sales in Rajasthan, the company's expertise in traditional jewelry manufacturing and strategic expansion into historical jewelry retail, along with a diverse product range, could make it stand out in the market