Motisons Jewellers IPO Financial Analysis

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 18th December 2023 - 06:33 pm

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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.

Total IPO size (₹Cr) 151.09
Offer for sale (₹ Cr) 0
Fresh issue (₹ Cr) 151.09
Price band (₹) 52-55
Subscription dates Dec 18 - 20, 2023
Purpose of issue For operational capital needs & general corporate purposes

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.

Particulars FY23 FY22 FY21
Net Revenues (₹ in Cr) 366.81 314.47 213.06
Profit after Tax (₹ in Cr) 22.20 14.75 9.67
Total Assets (₹ in Cr) 336.51 306.53 275.42
Earnings / Share (EPS) ₹ 3.42 2.27 1.49
EBITDA (₹ in Cr) 49.60 38.75 31.12

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

Ratios FY23 FY22 FY21
ROE (%) 16.16 12.78 9.58
ROA (%) 6.60 4.81 3.51
Debt-to-equity 1.20 1.31 1.40

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%.

Promoter Holding %
Pre-issue Promoter holding 92%
Post-issue Promoter holding 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

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