Evaluating of Motison’s Jewellers for

Investment

EVALUATING OF IPO'S FOR MOTISON’S

18-01-2024
Company Overview
MS GROUP: -
 Motison’s Group Is an Established Name in The Business World Of Jaipur, Which
Made Its Debut In The Year
 1998 As a Jeweller and Soon Emerged as One Of The Most Renowned Brands Not
Only In Jaipur But Across The Country, Known for Creating Some of The Most
Magnificent Pieces of Jewels.
 The Managing Directors, Mr. Sandeep Chhabra & Sanjay Chhabra, had a strong
vision to take the jewellery division to an allnew level in the retail sector, therefore
the duo continued to take it over to great heights, and as a result today the brand
successfully operates from two of the most prominent locations in Jaipur.
 The first outlet, famously known as the traditional store is situated amidst the
famous lanes of the busiest Johri bazaar, in the heart of the city, however the
flagship store motisons tower is located at the high street of Tonk road, jaipur. the
most recent outlet is situated in the affluent neighborhood in the southwestern part
of Jaipur at Vaishali Nagar.

The outer structure reflects the

beauty of the lotus flower which is a symbol of prosperity, making it look more
enchanting in the 9 shades of gem stones, called Navratnas. interiors of the showroom

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gives a mesmerizing feel, the ambience is majestically breathtaking and adds a vibrant
aura. the floor is exceptionally adorned by the intricate inlay work of genuine
gemstones, like lapis lazuli, mother-of-pearl & rose quartz, in fine marble. the ceiling on
the ground floor is an art in itself, made of 24 carat real gold foil. adding to the charm is
a 3 store chandelier that covers one part of the 3 floors and the other half has a
resplendent display of jewels and artifacts.

About Motison’s Jewellery: -

Motisons Jewellery is a renowned name in the jewellery industry, known for its
exquisite designs and quality craftsmanship. Their focus lies in creating timeless
pieces that reflect elegance and sophistication. With a wide range of jewellery
options, including traditional and contemporary designs, Motisons caters to the
diverse tastes and preferences of their customers. Whether it's diamond, gold, or
precious gemstone jewellery, Motisons strives to deliver exceptional quality and
customer satisfaction. Their commitment to excellence has made them a trusted
brand in the industry.

FINANCIAL ANALYSIS
Motisons Jewellers, a jewelry retail business from Rajasthan, is launching its Ipo
on December 18, 2023. here's a summary of the company's business model,
strengths, weaknesses, and growth potential to assist investors in making
informed decisions.

Motisons jewellers overview: -

Motisons jewellers ltd, established in October 1997, specializes in selling a variety
of jewelry, including gold, diamond, Kundan, pearl, silver, platinum, and other
precious metals. they offer a diverse range of designs for all ages and occasions,
from everyday wear to weddings and festivals. the main store, Motisons Towers in
Jaipur, is a spacious three-floor facility dedicated to silver, gold, and diamond
jewelry.

Motisons Jewelers serves men, women, and children, providing unique products
suitable for special gifting occasions. The company has several subsidiaries, such
as Motisons Shares Private Ltd, Bholenath Real Estate Private Ltd,

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Godavari Estates Private Ltd, Motisons Buildtech Private Ltd, and Shivansh
Buildcon Private Ltd.

Total IPO size (Rs.Cr) 151.09

Offer For Sale (Rs.Cr) 0
Fresh issue (Rs.Cr) 151.09
Price Band 52-55
Subscription dates Dec 18 -20, 2023
Purpose of issue For operational capital needs & general corporate
purposes

Key Ratios: -
In the fiscal year 2023, Muthoot microfine reported a Return on Equity (ROE) of
16.16%, Return on Assets (ROA) of 6.60%, and debt to equity stand at 1.20.

Ratios FY23 FY22 FY21

ROE (%) 16.16 12.78 09.58

ROA (%) 6:60 04:81 03:51

Debt-to-equity 01.20 01.31 01.40

Motisons Jewellers Vs Peer: -

motisons jewellers has a price-to-earnings (p/e) ratio of 16.08, its valuation seems
reasonable when compared to peers. renaissance global stands out with a high p/e
of 48 and a low eps of rs. 2.13.

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 Company Revenue (₹ in Face Value / P/E EPS ROE(% ROCE
lakhs) Equity Share (₹) (Basic) (₹) ) (%)

Motisons Jewellers 36619.61 10.00 16.08 3.42 16.16% 30.04%

Limited
Goldiam International 30344.78 2.00 27.55 5.22 22.20% 25.58%
Limited

DP Abhushan 1,97,512.02 10.00 29.09 20.33 28.40% 34.89%

Limited
Thangamayil 3,15,255.00 10.00 24.08 58.13 22.37% 26.36%
Jewellery Limited
Renaissance Global 1,35,481.09 10.00 48.00 2.13 3.71% 7.91%
Limited

PROMOTERS OF MOTISONS JEWELLERS

IPO: -
1. Mr. Sandeep Chhabra
2. Mr. Sanjay Chhabra
3. Ms. Namita Chhabra
4. Ms. Kajal Chhabra
Presently, the promoters maintain a 92% stake in the company. Post-IPO listing
promotors' ownership will reduce to 66%.

Promoter Holding %

Pre-issue Promoter holding 92%

Post-issue Promoter holding 66%

SUMMARY OF KEY FACTOR
INDICATORS: -

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 Financial Key Performance Indicators of our Company
Particulars For the period For the fiscal year
ended on June ended on March 31
30,2023 2023 2022
Revenue from Operation (in 8,672.83 36,619.61 31,433.01
lakhs)
Growth in Revenue from 16.50% 47.55%
operation (%)
Gross profit 1,575.39 6,329.50 4,889.66

BUSINESS MODEL
Motisons Jewellers Limited is one of the prominent Jewellery Retailer and
Exporter from Jaipur, India. Motisons operates Company owned four stores along
the length and breadth of the City Jaipur. Here we express romance and
admiration through bridal jewellery and a present a huge jewellery assortment
which is very important for our customers, as it is like a self-reward. We believe
customers associate our brands with high quality jewellery with an outstanding
customer experience. Motisons increases the attraction of our store brands to
customers through an unparallel store appearance well differentiated and
exclusive merchandise and at the same time offering a compelling value
proposition in basic ranges. Overall operate principle of excellence in execution,
testing before investing, continuous improvement, and disciplined investment.

Motisons is not only committed to delivering increasing value to our domestic

customers while seeking to opportunities to brand attributes and product
qualities to the global leaders/ Retailers/ TV Channels/ other Jewellery Houses
within the industry.

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Market Analysis: -
SWOT Analysis: -
IPO Strengths:
1. Well-placed showrooms in strategic locations.
2. Diverse range of products at different prices and in various categories.
3. Established heritage and legacy spanning over two decades.
4. Efficient systems to manage and reduce risks.

IPO Weaknesses:
1. Overreliance on sales of gold jewelry.
2. Limited online presence and digital outreach.
3. Concentrated geographical presence primarily in Jaipur.
4. Lack of regular dividend distribution.

IPO Details
Motisons Jewellers IPO is scheduled from December 18 to December 20, 2023. The
stock has a face value of ₹10 per share, and the IPO's price range is ₹52 to ₹55 per
share.

Management Team: -
Sandeep Chhabra Chairman & Whole time Director
Laksh Chhabra Joint Managing Director
Namita Chhabra Non-Executive Director
Sushil Kumar Gangwal Independent Director
Alpesh Fateh Singh Purohit Independent Director

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Sanjay Chhabra Managing Director
Kajal Chhabra Non-Executive Director
Jayesh Nemchand Mehta Independent Director
Sunil Chordia Independent Director
Vikas Kaler Independent Director

USE OF PROCEEDS: -
If I understand correctly, you're asking about the use of proceeds from
Motisons Jewellery. Motisons Jewellery, like many businesses, may use
their proceeds for various purposes. These can include reinvesting in
the business for expansion, improving their product offerings,
enhancing customer experience, or supporting community initiatives.
It's always great to see businesses using their resources to grow and
make a positive impact.

RISK AND CHALLENGES: -

Motisons Jewellery, like any business, may face various risks and challenges in the
jewellery industry. Some common ones include:

1. Market competition: The jewellery industry is highly competitive, with

numerous players offering similar products. Motisons Jewellery needs to
continuously innovate and differentiate itself to stay ahead.
2. Changing consumer preferences: Consumer tastes and preferences in jewellery
can change over time. Motisons Jewellery must stay updated with the latest
trends and adapt their designs to meet customer demands.

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3. Fluctuating material costs: The prices of precious metals and gemstones can be
volatile, impacting the cost of production for Motisons Jewellery. Managing these
fluctuations while maintaining competitive pricing can be challenging.
4. Counterfeit products: The jewellery industry is susceptible to counterfeit
Ensuring strict quality control measures and educating customers about
authenticity is crucial.
5. Economic factors: Economic downturns or fluctuations in the economy can
affect consumer spending on luxury items like jewellery. Motisons Jewellery needs
to navigate these economic challenges and adjust their strategies accordingly.

VALUATION: -
The expected valuation of Motisons Jewellers Limited after its IPO can be
estimated based on the price band and the total IPO size. The company is looking
to raise a total of Rs 151.09 crore through its primary stake sale, comprising the
issuance of 27,471,000 fresh equity shares. The price band for the IPO has been set
in the range of Rs 52-55 per share
. To calculate the expected valuation, you can use the following formula:
Expected Valuation
=
Total number of equity shares issued
×
Price per share
Expected Valuation=Total number of equity shares issued×Price per share
Using the above formula, the expected valuation of Motisons Jewellers Limited
after the IPO can be calculated based on the final price discovered within the
price band through the book building process. This valuation will be known once
the IPO is closed, and the final price is determined.

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INVESTMENT RECOMMENDATION: -
 Motisons jewellers’ initial public offering
(IPO) opened for subscription on December
18, 2023, with a price range of Rs 52-55 per
share. The bidding will continue until
December 20, and the company aims to raise
Rs 151.09 crore through the issuance of
27,471,000 fresh equity shares.

 Established in October 1997, Motisons Jewellers, based in Jaipur, Rajasthan,

specialises in gold, diamond, and kundan jewelry, offering a diverse range of
traditional, modern, and combination designs.

 The net proceeds from the IPO will be utilized for repaying existing
borrowings, working capital requirements, and general corporate needs.

 Established in October 1997, Motisons Jewellers, based in Jaipur, Rajasthan,

specialises in gold, diamond, and kundan jewelry, offering a diverse range of
traditional, modern, and combination designs.

 The company's flagship store, Motisons Tower, is located in Jaipur.

 It may be noted that Motisons Jewellers raised over Rs 36 crore from anchor
investors, allocating 66 lakh equity shares at Rs 55 apiece to funds such as
Meru Investment Fund PCC-Cell 1 Zinnia Global Fund PCC-Cell Dewcap Fund.
 The company caters to various occasions with a diverse range of jewelry
suitable for all ages and genders, featuring over 300,000 designs in gold,
diamonds, and other materials.

 Several brokerages have shared their views on the IPO, with several giving it a
‘subscribe’ rating, but with a disclaimer.

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 IndSec Research has given the IPO a ‘subscribe with caution’ rating,
saying that the IPO is priced at 24.4 times FY23 PE, offering a 24 per cent
discount to industry peers.

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