Manoj Vaibhav Gems N Jewellers IPO

Manoj Vaibhav Gems 'N' Jewellers Limited is a leading regional jewellery brand in South India led by a first generation woman entrepreneur, Bharata Mallika Ratna Kumari Grandhi, along with her daughter, Grandhi Sai Keerthana (Source: Technopak Report). This hyperlocal jewellery retail chain has a presence in the micro markets of Andhra Pradesh & Telangana with 13 showrooms (inclusive of two franchisee showrooms) across 8 towns and 2 cities. They also have a market share of approximately 4% of the overall Andhra Pradesh and Telangana jewellery market and about 10% of the organised market in these two states in FY2023 (Source: Technopak Report).

The company caters to all economic segments of the micro markets in Andhra Pradesh and Telangana through its showrooms, with a strong focus on both rural and urban markets. Since rural markets have a larger pie of the retail jewellery market and there is inelasticity of rural demand for gold, this offers a large potential for growth. 77% of their retail showrooms are in Tier 2 and Tier 3 cities catering to the semi-urban and rural demand of Andhra Pradesh and Telangana. The remaining 15% of their retail showroom is located in the Mini Metro city of Hyderabad and 8% in the Tier 1 city of Visakhapatnam catering to the urban consumers.

The company’s EBITDA per retail showroom was Rs. 57.96, Rs. 87.47 and Rs. 110.04, for Fiscals 2021, 2022 and 2023 respectively (In Rs. Million). The EBITDA per retail showroom as a % of Total EBITDA was 8.33%, 8.33% and 7.69% for the same years respectively.

With that, let's take a look at the competitive strengths and risk factors for Manoj Vaibhav Gems 'N' Jewellers Limited: