Utssav Cz Gold Jewels Ltd IPO: Review, Valuation, Date & GMP

Utssav Cz Gold Jewels Limited IPO - Complete Overview

Utssav Cz Gold Jewels Limited IPO an SME IPO is a Book Built issue of Rs.69.50 crore by Utssav Cz Gold Jewels Limited that was established in November 2007, it specializes in creating, selling, and exporting high-quality gold jewelry, including 18K, 20K, and 22K CZ Gold pieces. They offer a diverse selection of items such as rings, earrings, pendants, bracelets, necklaces, watches, and brooches.

Their manufacturing unit in Andheri East, Mumbai, spans 8,275 square feet and has the capacity to produce 1,500 kg of jewelry annually. They serve customers across 17 states and 2 UTs in India, as well as in two countries overseas. The company is known for its lightweight gold and rose gold jewelry, which is popular for everyday and fashion use. They have a wide variety of designs, ranging from traditional to modern, available at different price levels to suit customer tastes.

In the 2023 financial year, their 18K and 22K gold jewelry lines made up 73.27% and 24.94% of their total sales. From October to January 2024, these categories saw sales of 74.22% and 24.67%, respectively. The company, with 15 CAD designers, consistently develops about 400 new designs each month to keep up with market trends and satisfy customer needs. As of March 31, 2024, they had 69 full-time employees.

The company plans to launch its SME IPO on July 31, 2024. 

 

 

Utssav Cz Gold Jewels Limited IPO Overview

Utssav Cz Gold Jewels IPO (Utssav IPO) of Rs.69.50 crore comprises a wholly Fresh Issue of 63.18 lac Shares (amounting to Rs.69.50 crore) out of which 33.24% is allocated to retail investors, 18.99% to institutional investors, 14.25% to non-institutional-investors.

This SME IPO will be available to investors on July 31, 2024, and conclude on August 2, 2024. The anticipated listing date for the IPO is Wednesday, August 7, 2024, and will be held on the NSE and SME. The price range of each Share is Rs.104 to Rs.110.

If you want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

The company's revenue increased by 15.85%, while profit after tax (PAT) increased by 50.18% during the financial years ending January 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year ending January 31, 2024.

• The total revenue of the company is Rs.27,733.20 lac.

• The net worth of the company is Rs.3,311.00 lac.

• The company's EBITDA is Rs.1,907.69 lac.

• The total assets of the company are Rs.12,333.33 lac.
  
  

(Amount in Lac)

Period	31 Jan 2024	31 Mar 2023	31 Mar 2022
Total Assets	12,333.33	8,215.83	5,616.49
Total Revenue	27,733.20	23,971.52	12,342.53
PAT	1,073.76	714.96	333.95
Net Worth	3,311.00	2,237.24	1,509.33
Reserve & Surplus	2,891.00	1,817.24	1,089.33
Borrowing	7,703.16	4,966.02	3,601.97

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in Lac)

Net Cash Flow In Multiple Activities	FY 2024	FY 2023	FY 2022
Net Cash Flow Operating Activities	-2,271.35	-1,153.37	-207.39
Net Cash Flow Investing Activities	-112.44	128.52	-190.56
Net Cash Flow Financing Activities	2,359.92	1,043.02	404.05

 

Product-wise Revenue Breakdown For The Last Three Fiscals

(Amount in Lac)

Geography-wise Revenue Breakdown of The Domestic Sales For The Last Three Fiscals

(Amount in Lac)

State	For Ten Months Concluded 31 Jan 2024	31 Mar 2023	31 Mar 2022
Delhi	2,635.82	4,127.24	2,182.25
Gujarat	2,843.10	2,103.60	880.49
Maharashtra	5,464.73	5,744.43	1,071.16
Madhya Pradesh	2,781.83	1,606.71	768.65
Tamil Nadu	4,424.87	2,558.96	2,171.17
Uttar Pradesh	4,615.55	3,031.94	1,094.86
Rajasthan	582.57	802.14	257.20
Karnataka	550.39	441.38	613.31
Punjab	519.84	487.80	1,328.08

 

Geography-wise Revenue Breakdown of The International Sales For The Last Three Fiscals

(Amount in Lac)

Country	For Ten Months Concluded 31 Jan 2024	31 Mar 2023	31 Mar 2022
UAE	780.26	493.57	-
USA	110.69	-	-
Total	890.95	493.57	-

 

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Meeting working capital requirements

• Corporate Purposes.

 

Peers of Utssav Cz Gold Jewels Limited

(Figures as of Fiscal 2024)

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Ashapuri Gold Ornament Ltd	10	0.71	10.70
Sky Gold Ltd	10	17.32	115.11
Swarnsarita Jewels India Limited	10	3.01	9.29
Uday Jewellery Industries Ltd	10	4.31	32.42

 

Evaluation

The price of this IPO is Rs.104 to Rs.110 for each Share.

Evaluation Of P/E Ratio

Considering the FY ended 31 March 2023, with EPS of Rs.4.26 from the last year, the resulting P/E ratio is 25.82x.

Considering the weighted EPS of Rs.2.95 for the last three years, the P/E ratio is 37.28x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 41.88x.

Particulars	P/E Ratio
Highest	115.11
Lowest	9.29
Average	41.88

In simple words, the P/E ratio of Utssav Cz Gold Jewels Limited-IPO (25.82x and 37.28x), compared with the industry’s average P/E of 41.88x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors; when considered based on the average P/E ratio of the industry.

IPO's Strengths

• Serving the rapidly expanding daily and fashion wear gold jewelry market.

• A proficient workforce equipped with modern design capabilities.

• Established connections with well-known jewelry stores.

• The Company is experiencing increased sales due to the strong demand for gold jewelry and the popularity of 18Karat gold jewelry. It reported a robust increase in business with enhanced profitability. The revenue generated from operations rose to Rs.12,021.72 from Rs.15,000 lac in FY 2021 to Rs.23,818.61 lac in FY 2023, indicating a CAGR of 40.75%.

• Senior management team and knowledgeable promoters.

 

IPO’s Weaknesses

• Risks to their CZ gold jewelry business include shifting customer tastes and market volatility. Variations in the price of commodities, such as gold, may affect its expenses and earnings. Product demand is influenced by changing consumer preferences, which means that businesses must constantly change to be competitive.

• In the past, it has encountered negative cash flows and might experience them again in the future.

• It might suffer losses if its rivals copy its designs because it didn't register its jewellery design under the Designs Act 2000.

• Due to the volatility of gold prices, it may not be able to purchase gold for its manufacturing processes at rates that are competitive.

• The manufacturing process necessitates the use of CAD-savvy designers and experienced labor. The company operations may be impacted if such persons are unavailable.

 

IPO GMP Today

The Latest GMP of Utssav Cz Gold Jewels Limited IPO is Rs.15.

 

 

Utssav Cz Gold Jewels Limited IPO Timetable (Tentative)

The IPO is scheduled from July 31 to August 2, 2024, with allotment on August 5, refund initiation on August 6, and listing on August 7, 2024.

Events	Date
IPO Opening Date	July 31, 2024
IPO Closing Date	August 2, 2024
IPO Allotment Date	August 5, 2024
Refund Initiation	August 6, 2024
IPO Listing Date	August 7, 2024

 

Utssav Cz Gold Jewels Limited IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on July 31, close on August 2, and offer a total issue size of 6,318,000 Shares (aggregating up to Rs.69.50 Cr) comprising a whole fresh issue size of 6,318,000 Shares (totaling up to Rs.69.50 Cr).

IPO Opening & Closing Date	July 31, 2024 to August 2, 2024
Face Value	Rs.10 per Share
Issue Price	Rs.104 to Rs.110
Lot Size	1200 Shares
Issue Size	6,318,000 Shares (aggregating up to Rs.69.50 Cr).
Offer for Sale	NA.
Fresh Issue	6,318,000 Shares (aggregating up to Rs.69.50 Cr).
Listing at	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Utssav Cz Gold Jewels Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.132000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.264000.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Utssav Cz Gold Jewels Limited IPO Reservation

Institutional Portion	18.99%
Retail Portion	33.24%
Non-Institutional Portion	14.25%
Other’s Portion	33.52%

 

Promoters And Management Of Utssav Cz Gold Jewels Limited IPO

• Mr. Pankajkumar H. Jagawat. 

• Mr. Shashank Bhawarlal Jagawat. 

• Mr. Rakesh ShantiLal Jagawat.

Pre-Issue Promoter Shareholding	95.98%
Post-Issue Promoter Shareholding	-

 

 

Utssav Cz Gold Jewels Limited IPO Lead Managers

• Choice Capital Advisors Pvt Ltd
  
  

Dividend Policy

The company has not paid any dividends in the last three years.

 

Conclusion

The company has experienced negative cash flow in operating and investing activities throughout the last few fiscal years. To achieve its goals, the company is currently launching an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

Click Here to stay updated with the Upcoming IPOs.

 

Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!

Open a world of Stock Market by Opening a Demat Account with your favourite Broking firm & Get a trading Strategy worth Rs.15,000!

Click here to open a Free Demat Account.

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.