1. At a Glance
Narbada Gems & Jewellery is the quiet cousin in the Sanghi jewellery family. Incorporated in 1992, it’s a ₹151 crore market-cap boutique player focusing on handcrafted rose-cut, flat diamond, and colour stone jewellery. Margins look impressive (11% OPM, better than Uday), but the cash cycle is longer than a South Indian wedding. Stock just shot up 16% in a day (₹71.5), but with sales barely moving (-2% in FY25), this feels like more sparkle than substance.
2. Introduction
If Titan is the Ambani wedding, Narbada is the hand-made invitation card. Niche, beautiful, and definitely expensive compared to effort put in.
The company makes studded gold jewellery (98% of revenue), with a design-heavy focus on flat diamond jewellery. They recently launched “Vilandi” – royal necklaces in Polki + emerald + ruby – targeting India’s maharani vibes market. Their clients? The who’s who of jewellery retail — Kalyan, Malabar, GRT, Chemmanur, P. Satyanarayan. Basically, if you’ve ever seen a big ad with a Bollywood actress dripping in diamonds, there’s a 5% chance Narbada quietly supplied it.
Problem? Sales haven’t grown much. FY25 revenue = ₹82.7 Cr vs ₹93 Cr in FY22. Despite new factories and collections, demand hasn’t scaled. The Sanghi family wants to merge Narbada into Uday Jewellery — consolidation of the bling empire.
3. Business Model (WTF Do They Even Do?)
Narbada is an old-school, handcrafted jeweller with in-house designers. Operations:
- Products: 98% studded gold jewellery, 1% diamonds, 1% precious stones.
- Target Market: Five segments → National chains (Kalyan, Malabar), regional chains (Chemmanur, Sulthan), family jewellers (Mangatrai, Amarsons), distributors, and exporters.
- Exports: Just 5% of revenue, but management says Middle East is next growth zone.
- New Factory: At Basheerbagh, Hyderabad, capacity 3x. Leased property, promoter-owned. (So rent flows back to family pockets. Classic.)
- New Launches: “Vilandi” Polki jewellery line → royal necklaces heavy with rubies, emeralds, diamonds.
Verdict: Focus on niche
