Motisons Jewellers Share Listing Gain: Buy, Sell or Hold the stock?

Motisons Jewellers Share Listing Gain: Buy, sell, or hold the stock?

If you are looking for a lucrative investment opportunity in the Indian stock market, you might want to check out Motisons Jewellers, a Jaipur-based jewellery retail company that made a dazzling debut on the bourses on Tuesday (December 26).

The company, which has been in the jewellery business since 1997, launched its initial public offering (IPO) earlier this month, and received an overwhelming response from investors. The IPO was subscribed to 159.6 times, with strong demand from qualified institutional buyers and non-institutional investors.

The stock was listed at a whopping Rs. 109 per share on the NSE, a premium of nearly 98% over the issue price of Rs. 55 per share. On the BSE, the stock opened at Rs.103.90 per share, still a handsome gain of 89% for the investors. The stock closed at Rs. 105.65 per share on the NSE and Rs. 104.85 per share on the BSE, giving a market capitalization of Rs.1,057 crore to the company.

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What makes Motisons Jewellers a shining star?

Motisons Jewellers is one of the leading jewellery retailers in India, with a presence in four cities - Jaipur, Delhi, Hyderabad and Mumbai. The company operates four showrooms under the Motisons brand, which offer a wide range of gold, diamond and other jewellery items across different price points. The company also has an online platform, www.motisonsjewellers.com, where customers can browse and purchase jewellery products.

The company has a diversified product portfolio, comprising over 300,000 jewellery designs, including traditional, contemporary and fusion styles. The company also offers customized jewellery solutions to its customers, based on their preferences and requirements. The company sources its raw materials from reputed and certified suppliers, and has a robust quality control system to ensure the highest standards of purity and craftsmanship.

The company has a loyal customer base, which is evident from its high repeat purchase rate of 65%. The company also has a strong brand recall and recognition, which is enhanced by its innovative marketing and promotional strategies. The company has won several awards and accolades for its excellence in jewellery design and retailing, such as the India’s Most Trusted Brand Award, the Retail Jeweller India Award, the India Bullion and Jewellers Association Award, and the Jaipur Jewellery Show Award.

The company has a sound financial performance, with a compound annual growth rate (CAGR) of 16.5% in revenue and 50.5% in net profit in the last three years. The company’s revenue increased from 314 crore in FY21 to 366 crore in FY23, while its net profit rose from 15 crore to 22 crore in the same period. The company’s earnings before interest, tax, depreciation and amortization (EBITDA) margin improved from 9.4% to 10.2% in the same period. The company’s return on equity (ROE) and return on capital employed (ROCE) stood at 25.8% and 28.6%, respectively, in FY23.

The company raised Rs.151 crore from its IPO, which was open for subscription between December 18 and December 20. The issue price was fixed at Rs.52-55 per share, with a lot size of 250 shares. The company had also raised Rs.33 crore from its pre-IPO funding round in October, where it allotted 60 lakh shares to anchor investors at Rs.55 per share. The funds raised by the company will be used for repaying debts amounting to Rs.58 crore, and working capital requirements of Rs.71 crore. The remaining funds will be kept for general corporate purposes.

What are the future prospects of Motisons Jewellers?

Motisons Jewellers has a bright future ahead, as it plans to expand its business and leverage the opportunities in the Indian jewellery market. The company intends to open new showrooms in Tier I and Tier II cities, as well as increase its online presence and reach. The company also aims to launch new products and collections and enhance its customer service and loyalty programs.

The Indian jewellery market is one of the largest and fastest-growing markets in the world, with a size of Rs.5.5 lakh crore in FY21 and a projected CAGR of 13% to reach Rs.10.6 lakh crore by FY26. The market is driven by rising disposable income, urbanization, changing consumer preferences, increasing fashion consciousness, and growing demand for branded and organized jewellery players. The market is also supported by favorable demographics, cultural significance, festive and wedding seasons, and increasing penetration of e-commerce and digital platforms.

Motisons Jewellers is well-positioned to capitalize on these trends, as it has strong brand equity, a wide product portfolio, a loyal customer base, a robust distribution network, a sound financial performance, and a visionary management team. The company has the potential to become one of the leading jewellery retailers in India and deliver superior returns to its shareholders.

Buy, Sell & Hold

We suggest investor shall book atleast 50% profits on the listing day itself rest can be held for Long term investment.

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Disclaimer:

Please note that this blog is not a recommendation for buying or selling any stock. We encourage readers to conduct thorough research, consider their risk tolerance, and consult with financial advisors before making investment decisions.