At a Glance
AJC Jewel Manufacturers Ltd is coming to the BSE SME runway with a ₹15.39 crore IPO from June 23–26, 2025. They’re in the business of gold jewelry (real gold, real debt). But with just a 1.35% PAT margin, is this a jewel or a jhaanjhar with hollow links? Let’s decode this dazzle.
💍 1. What Does AJC Jewel Actually Do?
Short answer: They make gold jewellery — and a LOT of it.
- ✅ Bangles, bracelets, rings, anklets for men, women, kids, uncles, aunties, and astrologers.
- ✅ 22K & 18K plain, studded, rose gold, and named gold (yes, you can get a “Suresh” chain).
- ✅ Clients: Dealers, corporate bulk buyers, showrooms—not a direct-to-consumer brand.
🏭 Based in Malappuram, Kerala (birthplace of gold chain supremacy), their factory is 21,780 sq. ft. with fancy toys like casting machines, polishing units, and even 3D printers.
Basically, Kalyan’s factory cousin, trying to go public.
💰 2. IPO Details – A Quick Hallmark
| Details | Info |
|---|---|
| Issue Size | ₹15.39 Cr (100% fresh) |
| Shares Offered | 16.2 lakh |
| Price Band | ₹90 – ₹95 |
| Lot Size (Retail) | 1,200 shares |
| Retail Min Investment | ₹1.08 lakh |
| HNI Min Investment | ₹3.42 lakh |
| Listing Platform | BSE SME |
| Market Maker | Rikhav Securities |
| Lead Manager | Smart Horizon Capital |
🎯 Use of Funds:
- ₹8.9 Cr → Loan Repayment (because gold is heavy, and so is their debt)
- ₹2.63 Cr → New Equipment
- Remainder → General Corporate Chikna Work
📈 3. Financials – Shiny on Top, Slippery Beneath?
Let’s look at what’s beneath the glitter 👀
| ₹ in Cr | FY22 | FY23 | FY24 | 9M FY25 |
|---|---|---|---|---|
| Revenue | 127.40 | 194.25 | 246.84 | 175.53 |
| PAT | 1.26 | 2.04 | 3.32 | 1.85 |
| EBITDA | 2.14 | 3.94 | 5.40 | 3.64 |
| Net Worth | 5.08 | 7.12 | 12.04 | 13.90 |
| Borrowings | 6.61 | 26.23 | 22.48 | 18.41 |
📉 Margins:
- PAT Margin: 1.35%
- EBITDA Margin: 2.19%
⚠️ Translation: For every ₹100 of sales, they barely make ₹1.35 in profit. That’s tighter than the clasp on a toddler’s gold kada.
🔎 4. Valuation – This Jewel’s a Bit Too Polished
- EPS (Post IPO): ₹4.13
- P/E at ₹95: 23.01x
- Book Value: ₹29.84 → P/B = 3.18x
- Market Cap: ₹56.85 Cr
Compared to Thangamayil, Renaissance, and other listed jewelers, this P/E is premium — but this is wholesale, not brand-building or retail bling.
🧮 EduFair Value Estimate: ₹65 – ₹80
- At 15x EPS = ₹62
- At 2.5x Book = ₹74
- Our FV Range: ₹65–₹80
📌 Asking Price? ₹95 😬
That’s ~45% above the justified zone, unless they suddenly discover diamond mines in Malappuram.
👥 5. Promoters & People Behind the Gold Curtain
👑 Promoters:
- Mr. Ashraf P
- Mr. Kunhimohamed P
- Ms. Fathima Jasna Kottekattu
🧠 Strengths Claimed:
- Wide range of products ✔️
- Skilled workforce ✔️
- Design innovation ✔️
- Fancy factory ✔️
But here’s the real plot twist: despite all that, less than ₹2 Cr PAT on ₹175 Cr revenue in 9M FY25 = major operating strain. No cost breakdowns provided either.
📊 6. Subscription Status – Not Exactly Oversubscribed Gold Rush
| Category | Day 1 Subscription |
|---|---|
| Retail | 0.23x |
| NII | 0.40x |
| QIB | 0.00x |
| Total | 0.20x |
| Total Apps | 59 🥲 |
Even your local goldsmith gets more walk-ins during monsoon weddings.
Anchor Portion raised ₹4.30 Cr (June 20), but institutional interest is absent so far. QIBs are saying “nah” for now.
🤔 7. EduInvesting Verdict: Is This a 24K IPO or Gold-Plated Risk?
👎 What we don’t like:
- ⚠️ Extremely low margins despite ₹175 Cr+ revenue
- ⚠️ High debt → D/E ratio still 1.87 even after repayments
- ⚠️ Small equity base post IPO = hard to migrate to mainboard
- ⚠️ ₹95 tag = retail ka chain kheenchna
👍 What we do like:
- ✅ Decent ROE (34.64%) and RoNW (27.56%)
- ✅ Long-term growth potential in organized gold manufacturing
- ✅ Kerala + gold = strong regional tailwind
Final Verdict: Might Shine, Might Sink
AJC Jewel may be real gold, but the margins feel like they’re made of 22K air. If you must enter, do it for listing pop only (and even that depends on Day 3 QIB drama). Long-term? Better to buy a real gold chain than this one on BSE.
🧾 Tags: AJC Jewel IPO, Gold Jewelry SME IPO, Kerala Jewelry Manufacturer, BSE SME IPO Review, Rikhav Market Maker IPO, EduInvesting SME Coverage
✍️ Written by Prashant | 📅 June 23, 2025
