Anticipating a Grand Unveiling: Motisons Jewellers on the Verge of a Blockbuster Debut
Investors in the shadowy market express bullish sentiments toward the esteemed jewelry retailer, speculating a premium ranging from 100% to a staggering 140% above the designated Rs 55 per share issue price—an insight shared by analysts who prefer anonymity.
Motisons Jewellers, hailing from the regal landscape of Jaipur, prepares to grace the trading arena on December 26, with the share price fixed at Rs. 55 per share.
The prospects for Rajasthan-based Motisons Jewellers on its inaugural trading day appear remarkably promising, with expectations of a premium exceeding 100% on December 26. Factors contributing to this optimistic outlook include robust subscription figures during the IPO period, a commendable financial track record over the past three years, and favorable market conditions.
In the clandestine market circles, where shrewd investors lurk, there is a palpable bullish sentiment toward the jewelry retailer. These astute players foresee a premium within the substantial range of 100-140%, elevating the perceived value of each share above the predetermined Rs 55—an insight attributed to analysts opting for the cloak of anonymity.
The public issue, valued at Rs 151 crore, witnessed an overwhelming subscription of 159.61 times during the window from December 18 to 20. Investors across all categories demonstrated robust participation, with high-net-worth individuals oversubscribing 233.91 times, qualified institutional buyers at 157.40 times, and retail investors at an impressive 122.28 times.
In comparison to two contemporaneous jewelry companies, Senco Gold and Vaibhav Jewellers, Motisons Jewellers outshone them in terms of subscription numbers in the current fiscal year.
Prathamesh Masdekar, a discerning research analyst at StoxBox, anticipates the stock’s listing at a premium of approximately 135% over the Rs 55 per share issue price. His optimism is grounded in the company’s well-established business model, seamlessly blending heritage with market acumen, a diverse product portfolio catering to various market segments, and strategically positioned showrooms contributing to enhanced revenue per square foot—a robust market position, indeed.
The Chhabra family-owned jewelry retail company, headquartered in Jaipur, boasts robust revenue growth over the past three years, witnessing a noteworthy doubling of net profit in the last two years. In the fiscal year ending March FY23, net profit soared by 50.5% to Rs 22.2 crore, while revenue surged by 16.5% to Rs 366.2 crore compared to the preceding year. EBITDA experienced a substantial increase of 26.9% year-on-year, reaching Rs 49 crore with a margin expansion of 109 basis points at 13.37%.
Examining the compound annual growth rates (CAGR), profit escalated by 51% during FY21-FY23, revenue by 31%, and EBITDA by 26%. The first quarter of the fiscal year ending June FY24 witnessed a net profit of Rs 5.5 crore on revenue of Rs 86.7 crore.
At the upper price band of Rs 55, the IPO is valued at 24.4 times the FY23 price-to-earnings ratio, presenting a 24% discount compared to industry peers. Saral Seth and Jainam Shah of Indsec Securities note that while the company maintains a healthy operating margin relative to peers, it lags in parameters like inventory days, working capital days, and leverage ratios. Motisons falls below the industry average, and the partial debt repayment stands out as a key positive.
Commencing its journey in 1997 with a solitary showroom in Jaipur, Motisons Jewellers later expanded its network to four showrooms under the Motisons brand. The public issue raised Rs 151.09 crore, exclusively from a fresh issue component.
The net proceeds from the fresh issue are earmarked for repaying debt (Rs 58 crore), addressing working capital requirements (Rs 71 crore), and fulfilling general corporate purposes. As of June FY24, the company’s total borrowings amounted to Rs 166 crore.
Disclaimer: The perspectives and investment insights shared by financial experts on Moneycontrol.com are independent and do not necessarily align with the website or its management. Moneycontrol.com advises users to seek guidance from certified experts before making any investment decisions.
Tag : #Motisons Jewellers shares listing price #Motisons Jewellers shares listing #Motisons Jewellers share price #Motisons Jewellers listing price #Motisons Jewellers IPO shares listing price #Motisons Jewellers IPO shares listing #Motisons Jewellers IPO share price #Motisons Jewellers IPO listing price #Motisons shares listing price #Motisons shares listing #Motisons share price #Motisons listing price #Motisons share price #Motisons listing price
This post is for informational purposes only.Invest responsibly.No guarantees of results. Seek professional guidance before investing.Consult experts for personalized advice.AI-assisted content, editorially reviewed.See our terms for details. Follows Google policies.Not affiliated with Investopedia.com. investopedia.co.in Independent site.
