Company Profile
Manoj Vaibhav Gems ‘N’ Jewellers Limited (MVGJL) is a prominent regional jewelry retailer based in South India, operating under the brand name Vaibhav Jewellers. The company specializes in a wide range of gold, diamond, silver, and platinum jewelry, including rings, necklaces, earrings, mangalsutras, and other accessories. Established as a proprietorship in 1989, it underwent several name changes, becoming a public limited company in May 2022
Headquartered in Vishakhapatnam, Andhra Pradesh, MVGJL operates 16 showrooms, including two franchisee outlets, across 10 towns and cities in Andhra Pradesh and Telangana. The company follows a hub-and-spoke model, with smaller showrooms complementing larger flagship stores
Financially, MVGJL reported a revenue of ₹2,027.34 crore in FY 2022-23, marking a compound annual growth rate (CAGR) of 18.92% over the previous two years. Net profit during the same period increased to ₹71.60 crore
The company’s leadership includes Chairperson and Managing Director Mrs. Bharata Mallika Ratna Kumari Grandhi, and her daughter, Sai Keerthana Grandhi, who serves as the Whole-Time Director and Chief Financial Officer
Product Portfolio
Main Products and Services
Manoj Vaibhav Gems ‘N’ Jewellers Limited, operating under the brand name Vaibhav Jewellers, offers a diverse range of jewelry products crafted to cater to various customer preferences. Their product portfolio encompasses:
Gold Jewelry: Including bangles, necklaces, earrings, mangalsutras, nose pins, rings, chains, lockets, and other accessories
Diamond Jewelry: Featuring bangles, necklaces, earrings, mangalsutras, nose pins, rings, chains, lockets, and additional accessories.
Silver Jewelry and Articles: Comprising dinner sets, pooja articles, glasses, tumblers, silver coins, and various jewelry items
Precious Gemstones: Offered as part of their jewelry collections.
Financial Snapshot (as of March 31, 2024)
Operating Revenue: ₹2,161 crore, reflecting a 6.03% year-over-year growth.
EBITDA: ₹161.64 crore, marking a 9.95% increase compared to the previous year.
Profit Before Tax (PBT): ₹108.67 crore, up 13.4% year-over-year.
Profit After Tax (PAT): ₹80.93 crore, a 13.03% rise from the previous year.
Net Worth: ₹617.78 crore, indicating a 79.3% year-over-year growth.
Total Assets: ₹1,399 crore, up 29.78% from the previous year.
Initial Public Offering (IPO) Plans
Manoj Vaibhav Gems ‘N’ Jewellers Limited (MVGJL) went public through its Initial Public Offering (IPO) in September 2023. The IPO was a combination of a fresh issue and an offer for sale, aiming to raise a total of ₹270.20 crore. The fresh issue comprised 97,67,442 equity shares, aggregating up to ₹210 crore, while the offer for sale included 28,00,000 equity shares, amounting to ₹60.20 crore. The price band for the IPO was set between ₹204 and ₹215 per share. The IPO opened for subscription on September 22, 2023, and closed on September 26, 2023. The allotment of shares was finalized on October 3, 2023, and the listing took place on October 6, 2023, on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE)
The primary objectives of the IPO were to finance the capital expenditure and inventory costs for the establishment of eight new showrooms and to meet general corporate purposes. MVGJL planned to expand its presence in Tier 2 and Tier 3 markets, focusing on rural areas that contributed significantly to its market share in FY23. The company aimed to open these new stores to tap into the growing jewellery market in Andhra Pradesh and Telangana.
The IPO was managed by Bajaj Capital Limited and Elara Capital (India) Private Limited, with Bigshare Services Pvt Ltd serving as the registrar. The retail portion of the issue was subscribed 0.44 times, the Qualified Institutional Buyers (QIB) portion was subscribed 0.25 times, and the Non-Institutional Investors (NII) portion was subscribed 0.19 times.
Objectives of the IPO
Establishment of Eight New Showrooms: The company aimed to utilize a portion of the IPO proceeds to finance the capital expenditure and inventory costs associated with setting up eight new showrooms. This expansion was intended to strengthen MVGJL’s presence in Tier 2 and Tier 3 cities, particularly in Andhra Pradesh and Telangana.
General Corporate Purposes: The remaining funds were allocated for general corporate purposes, which may include working capital requirements, brand building, and other strategic initiatives to support the company’s growth and operational efficiency.
Future Outlook
MVGJL is actively expanding its retail footprint, focusing on Tier 2 and Tier 3 cities in Andhra Pradesh and Telangana. Recent store inaugurations include locations in Mancherial, Telangana, and Narsipatnam, Andhra Pradesh. These expansions are part of the company’s plan to establish eight new showrooms, utilizing proceeds from its IPO to finance these ventures.
As of December 2024, MVGJL reported a Return on Capital Employed (ROCE) of 21%, surpassing the industry average of 16%. This indicates efficient utilization of capital in generating profits.
Despite robust earnings growth, MVGJL’s Price-to-Earnings (P/E) ratio remains lower than industry peers. This suggests that investors may have tempered expectations regarding the company’s future earnings potential.
MVGJL’s strategic initiatives, including targeted retail expansion and efficient capital deployment, position the company for continued growth in the South Indian jewelry market. By focusing on underserved regions and maintaining operational efficiency, MVGJL aims to enhance its market share and deliver sustained value to stakeholders.
Market Positioning and Growth Prospects
Regional Dominance: MVGJL has solidified its position as a leading jewelry retailer in Andhra Pradesh and Telangana, leveraging its deep understanding of local tastes and traditions.
Product Diversification: The company’s extensive product portfolio, including gold, diamond, and silver jewelry, as well as precious gemstones, appeals to a broad customer base seeking both everyday wear and ceremonial pieces.
Customer-Centric Approach: By engaging with customers through exhibitions and personalized services, MVGJL fosters strong relationships and brand loyalty within its communities.
Retail Expansion: MVGJL is actively expanding its retail footprint, with plans to establish eight new showrooms funded by its IPO proceeds. This expansion aims to tap into the growing demand in underserved regions.
Financial Performance: The company reported a Return on Capital Employed (ROCE) of 21%, surpassing the industry average of 16%, indicating efficient capital utilization and strong operational performance .
Market Growth: The jewelry markets in Andhra Pradesh and Telangana are projected to grow at a CAGR of approximately 18%, reaching USD 6.3 billion and USD 5.3 billion, respectively, by FY 2027 .
