🧠 At a glance
Utssav CZ Gold Jewels Ltd, a listed SME in the business of gold and silver ornaments, reported its best-ever revenue and profit in FY25. Sales more than doubled to ₹64.6 Cr. Net profit jumped to ₹25.05 Cr, and EPS came in at ₹11.63. The company also raised over ₹6 Cr in IPO proceeds, all of which has already been “utilized.” Sounds golden, right?
Now let’s open the locker and check what’s actually inside.
🏢 About the Company
Utssav CZ Gold Jewels Ltd is a Mumbai-based player in the organized jewellery retail and manufacturing space. The company primarily deals in:
- Gold jewellery (including bridal and festive)
- Silver ornaments and coins
- Retail distribution and wholesale trade
- Possibly CZ (cubic zirconia) imitation segments too
It’s positioned as a traditional jewellery business riding the wave of India’s ₹5 lakh crore gold economy — just on the SME side of the stock market.
The company is headed by Pankajkumar Hastimal Jagawat, who also signs the balance sheet, cash flow statement, and IPO utilization table.
👔 Key Managerial Personnel
| Name | Role |
|---|---|
| Pankajkumar H. Jagawat | Managing Director |
| Jain V & Co. | Statutory Auditors |
No CFO was mentioned in the results filing. Maybe in this company, the MD wears all the rings — and signs all the cheques.
📊 FY25 Financial Performance
| Metric | FY25 (₹ in Lakhs) | FY24 (₹ in Lakhs) |
|---|---|---|
| Revenue from Operations | 64,631.88 | 34,019.56 |
| Other Income | 135.05 | 165.20 |
| Total Income | 64,766.93 | 34,184.76 |
| Total Expenses | 61,464.21 | 32,467.64 |
| Profit Before Tax | 3,302.72 | 1,717.12 |
| Tax (Current + Deferred) | 796.73 | 432.30 |
| Net Profit | 2,505.98 | 1,284.82 |
| EPS (Diluted) | ₹11.63 | ₹7.65 |
🧮 EduFair Value Estimate
Let’s apply an SME-reasonable multiple for retail jewellery companies.
- EPS = ₹11.63
- Reasonable PE for unorganized retail player = 12x to 15x
Forward Value Range = ₹139.56 – ₹174.45
If the CMP is anywhere below ₹100 — you’ve got potential upside. But if the stock is rallying just based on the number of karats in a bangle, caution advised.
💰 IPO Money — Fully Used?
Yes, the company raised ₹6,073.51 lakh net of IPO expenses, and according to their own filing, 100% of it has been utilized.
| Use Case | ₹ in Lakhs |
|---|---|
| Working Capital | 6,050.00 |
| General Corporate Purpose | 23.51 |
| Total Used | 6,073.51 |
Nothing kept in reserves. Everything deployed.
💡 Translation: “Fresh cash aaya, inventory kharida, chalu ho gaya.”
📦 Balance Sheet Highlights
| Item | 31 Mar 2025 (₹ in Lakhs) | 31 Mar 2024 (₹ in Lakhs) |
|---|---|---|
| Share Capital | 2,381.80 | 1,680.00 |
| Reserves & Surplus | 10,297.24 | 1,842.05 |
| Total Equity | 12,679.04 | 3,522.05 |
| Total Assets | 26,966.90 | 12,123.81 |
| Inventories | 8,409.42 | 2,172.68 |
| Trade Receivables | 10,922.56 | 5,681.25 |
| Cash & Equivalents | 5,625.89 | 2,457.29 |
| Total Borrowings | 13,033.82 | 7,288.98 |
🚨 A few things pop out here:
- Inventory and receivables both more than doubled. That’s a working capital-heavy business, but also raises questions about liquidity.
- Borrowings are up massively — from ₹7.3 Cr to over ₹13 Cr. That’s a concern.
- But cash balance also rose — thanks to IPO + operations.
📈 Cash Flow Statement Summary
| Cash Flow Component | FY25 (₹ in Lakhs) | FY24 (₹ in Lakhs) |
|---|---|---|
| Net cash from operations | -₹8,916.52 | ₹681.61 |
| Net cash from investing | ₹281.16 | -₹105.57 |
| Net cash from financing | ₹11,803.95 | ₹1,854.09 |
| Net change in cash | ₹3,168.59 | ₹2,430.13 |
Yes, you read that right — cash from operations is negative ₹89 Cr.
Why?
Because trade receivables and inventory shot up by over ₹11 Cr combined. And that’s the big risk here — the company is technically profitable, but very little cash is being realized from operations.
🔍 Segmental View? Nope.
Unlike Titan or Kalyan Jewellers, this SME doesn’t offer separate segmental reporting for wholesale vs retail, gold vs silver, or own brands vs outsourced.
So we’re flying blind on product mix. But given the spike in inventory, it’s safe to assume stocking up for seasonal demand or wedding orders.
🧠 EduInvesting Take
“Utssav is profitable. But it’s also a cash guzzler dressed up in bridal jewellery.”
The topline growth is fantastic. EPS is solid. PAT has more than doubled. But the underlying cash flow is heavily reliant on short-term debt and IPO proceeds. If those receivables don’t convert into cash quickly, the business could feel a squeeze.
That said, this is how most jewellery SMEs operate:
Big inventory + B2B credit terms = high risk + high margin game.
So if you’re betting on this stock, know that you’re betting not just on gold… but on collections.
🚨 Risks & Red Flags
| Red Flag | Why It Matters |
|---|---|
| Cash flow from operations = Negative ₹89 Cr | Classic working capital trap |
| Receivables doubled | Credit terms may be long or collections weak |
| Inventory jumped 3x | Could be unsold stock or seasonal planning |
| Borrowings up 78% YoY | Higher financial leverage |
| No segmental or geographic data | Limited transparency |
💍 Should You Track This Stock?
If you’re a fan of SME stocks in consumer retail, Utssav CZ Gold Jewels is worth tracking.
✅ It has real revenue
✅ Profits are strong
✅ IPO money wasn’t wasted
❌ But cash flow and leverage need monitoring
Just remember — this isn’t Titan. This is a levered, risk-on, festive season–dependent SME business where even one bad quarter of collections could flip the story.
🏁 Final Thoughts
Utssav CZ Gold Jewels Ltd delivered a shiny FY25.
Revenue is up. Profit is up. IPO money used. Expansion likely on track.
But behind all the sparkle lies a balance sheet that’s working overtime. Inventory is high, debt is rising, and cash is running only because investors just gave them ₹6 Cr.
This one is not a scam. It’s a legit SME play.
Just remember: not all that glitters is free cash flow.
🖋️ Article by: Prashant Marathe
📅 Date: 31 May 2025
🏷️ Tags: Utssav CZ Gold Jewels, FY25 Results, Jewellery SME, IPO utilization, negative cash flow, working capital, EPS, NSE SME
