Shubhlaxmi Jewel Art Limited IPO Review

Shubhlaxmi Jewel Art Limited IPO Review

Shubhlaxmi Jewel Art Limited is engaged in the business of jewelry and ornaments. It is Bhavnagar, Gujarat based classified Non-govt company. This company is also engaged in both the retail and wholesale business.

Shubhlaxmi Jewel Art Limited IPO Review Issue Details :

  • IPO Opens on – Nov 22, 2018
  • IPO Closes on – Nov 27, 2018
  • Issue Type – Fixed Price Issue IPO.
  • Face Value – Rs.10 per Equity Share.
  • Issue Price – Rs. 26 Per Equity Share.
  • Min Order Quantity – 4000 shares.
  • Market Lot – 4000 shares.
  • Issue Size – 2,504,000 Equity Shares of Rs. 10 aggregating up to Rs. 6.51 Cr.
  • Listing Exchange At – NSE SME Exchange.
  • Draft Prospectus – Click Here.

Objectives of the issue of the Company :

  • Funding the working capital requirements of this company.
  • General corporate purposes of Shubhlaxmi Jewel Art Limited.

About The Company –

  • Shubhlaxmi Jewel Art Limited is incorporated in 2013.
  • This company’s product portfolio includes a wide range of jewelry made of gold, silver, diamond, and platinum studded with precious and semi-precious stones.
  • Shubhlaxmi Jewel Art Limited has its own showroom located at Bhavnagar.
  • This company is also setting up a manufacturing facility in the city to cater to the demands of the local customers.
  • Shubhlaxmi Jewel Art Limited offer many accessories likes brooch, belts, eye frames, pens, watches, buttons, cuff links, tie pins, etc. having work of gold, diamond or other precious and semi-precious stones.
  • This company’s wide range of products offerings caters to diverse customer segments, from the high-end to mid-market and value market segments.
  • Shubhlaxmi Jewel Art Limited’s products portfolio consists of jewelry collections likes bridal, Rajasthani, Junagadh, polka, fine pearl and other antique jewelry items.

Shubhlaxmi Jewel Art Limited

Products of Shubhlaxmi Jewel Art Limited :

  • Necklace with Ear Rings.
  • Mangalsutra.
  • Patla Set.
  • Single Patla.
  • Chain.
  • Lucky.
  • Mala with Earrings.
  • Kandoro.
  • Poncha.
  • Payal.

Location :

Registered Office and Showroom –

Shop No. 1, Ground Floor, D & I Excelus,

Opp Home School, Waghawadi Rd, Takhteshwar, Hill Drive,

Bhavnagar, Gujarat 364002.

Email ID: [email protected]

The promoter of Shubhlaxmi Jewel Art Limited :

  • Narendrasinh Chauhan, aged 42 years, is the Promoter, Chairman and Managing Director of this company.
  • Jitendrakumar Chauhan, aged 36 years, is the Promoter and Whole Time Director of this company.

The Board of Directors of this company :

  • Narendrasinh Chauhan, aged 42 years, is the Promoter, Chairman and Managing Director of this company.
  • Jitendrakumar Chauhan, aged 36 years, is the Promoter and Whole Time Director of this company.
  • Jagrutiben Chauhan, aged 38 years, is the Promoter and Executive Director of this company.
  • Kajal Chauhan, aged 32 years, is the Executive Director of this company.
  • Bhadreshkumar Dave, aged 56 years, is the Independent Director of this company.
  • Ramkrushnabhai Champaneri, aged 50 years, is the Independent Director of this company.
  • Rakeshkumar Soni, aged 45 years, is the Independent Director of this company.
  • Snehalden Jain, aged 40 years, is the Independent Director of this company.

Competitive Strengths of Shubhlaxmi Jewel Art Limited :

  • Experienced Promoters :

The promoters of Shubhlaxmi Jewel Art Limited Narendrasinh Chauhan and Jitendrakumar Chauhan have more than two decades of experience in the gems and jewelry industry. Their relationships with this company’s other suppliers, customers and other industry participants have been instrumental in implementing their growth strategies. The promoters of this company are actively involved in their operations.

  • A wide range of products :

The product portfolio of Shubhlaxmi Jewel Art Limited is consists of wide range of jewellery which differentiate theirs from the local jewelers. The portfolio offers their customers a wide variety of traditional, Indo-western and modern jewellery. This company sells gold jewellery made with or without studded diamonds, precious and semi-precious stones.

  • Quality of the company’s products :

This company believes in providing quality jewelry to their customers. Quality and purity of the jewellery are very important for Shubhlaxmi Jewel Art Limited from the customer point of view. This company providing the desired quality and purity in their jewellery with help in enhancing their brand value and maintaining long-term relationships with customers.

  • Customer Satisfaction :

Shubhlaxmi Jewel Art Limited believe that they can appeal to their customers through market preferences and experiences. They believe that their understanding of preferences and tastes coupled with a variety of designs and jewellery which is offered by this company and provides a competitive advantage in the markets. Shubhlaxmi Jewel Art Limited offer jewelry designs based on the general trends and specific customer requirements.

  • Strong understanding of customer preference :

This company maintains long-term relationships with their customers by offering them quality jewellery newer and latest designs and selling the jewelry at the most competitive price. Shubhlaxmi Jewel Art Limited has started up with the monthly recurring scheme for the customers wherein customers can buy the gold by paying monthly installments. Customers of this company are entitled to discounts and other benefits on this scheme.

SWOT Analysis of this company :

  • Strengths :

  1. Experience of Promoters.
  2. Quality products at competitive prices.
  3. A wide range of products.
  4. Flexibility to provide customized products.
  • Opportunities :

  1. Increasing the purchasing power of the people.
  2. Growing market for customized jewelry and innovative designs.
  3. Setting up the manufacturing facility.
  • Weakness :

  1. Tough competition in the market mean limited market share.
  2. Limited operation company.
  3. Limited presence with having only one showroom.
  • Threats :

  1. Largely dominated by the unorganized sector.
  2. Fluctuation in raw material prices.
  3. Constant change in coustomer preferences.

Business Strategies for this company :

  • Shubhlaxmi Jewel Art Limited continues to invest in this company’s marketing and brand building initiatives.
  • Consistently meeting quality and purity are this company’s strategies.
  • Shubhlaxmi Jewel Art Limited’s main focus on product innovation.
  • Continue to focus on existing customers of this company.
  • Shubhlaxmi Jewel Art Limited’s business strategy is setting up of the manufacturing facility.

Company Financials :

Shubhlaxmi Jewel Art Limited IPO

Shubhlaxmi Jewel Art Limited IPO Review :

The above attachment reflects the quarterly details of the company financials. The progress report is quite confusing, the profit growth is in an abrupt way. Now, without any delay, let’s move on to the company prospectus. According to draft red herring prospectus, EPS is at 1.42 in the 2017-18 fiscal year. The prospectus doesn’t contain P/E ratio. The RoNW and NAV/Share are 14.86 and 9.57 respectively. Based on the available data, Shubhlaxmi Jewel Art Limited IPO Review carries a NEGATIVE view. Traders are advised to avoid the particular IPO.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.