Utssav CZ Gold Jewels IPO IPO

•    The company is operating in a highly competitive and fragmented segment of gold jewelleries.
•    The sudden boost in its bottom lines from FY23 onwards raises eyebrows and concern over its sustainability.
•    Based on FY24 annualized super earnings, the issue appears fully priced discounting all near term positives. 
•    While recent SME IPOs are going public with March 24 numbers, while this company is going public with January 31, 2024 numbers.
•    The company did a placement at Rs. 82.50 per share in April 2024.
•    Now, it is asking Rs. 110 at the upper cap from public.
•    There is no harm in skipping this "High Risk/Low Return" pricey issue. 

1. Funding Working Capital requirement of the company
2. General Corporate Purpose

Incorporated in November 2007, Utssav Cz Gold Jewels Limited designs, manufactures, wholesales, and exports 18Karat, 20Karat, and 22Karat CZ Gold jewellery.

The company makes and sells a wide range of products, including rings, earrings, pendants, bracelets, necklaces, watches, and brooches.

The company's manufacturing facility in Andheri East, Mumbai, covers 8,275 square feet and produces a variety of jewellery with a capacity of 1,500 kg per annum.

The company's customers are in 17 states and 2 union territories in India, as well as 2 countries abroad.

The company offers a wide range of lightweight jewellery in 18K, 20K, and 22K CZ gold and rose gold categories, popular for daily and fashion wear. These include traditional and contemporary designs at various price points to match consumer preferences. In the 2023 financial year, the 18K and 22K gold jewelry categories accounted for 73.27% and 24.94% of total sales, and in the ten months ending January 31, 2024, they were 74.22% and 24.67% respectively.

The company, with 15 CAD designers, develops about 400 designs monthly to stay ahead of market trends and meet customer demands. 

As of March 31, 2024, the company has 69 permanent employees on its payroll.