1. At a Glance
Radhika Jeweltech is the Rajkot-based jewelry retailer that went from a regional darling to a 5x multibagger in under 3 years. With over ₹588 Cr in FY25 sales and a fat 15% OPM, it’s the smallcap Titan-in-the-making—or is it cubic zirconia in disguise?
2. Introduction with Hook
If Titan is the luxury Swiss watch, Radhika is the dependable desi Rolex knockoff. Clean balance sheet, 41% profit CAGR (5 yrs), and ROCE of 26%—but with an auditor resignation and an Income Tax raid glittering in the background, you might want to inspect this gold with a loupe.
- FY25 PAT: ₹60 Cr
- Inventory Days: 272
- FII Holding: Practically 0%
Welcome to Radhika’s boutique, where everything shines… until you check the audit trail.
3. Business Model (WTF Do They Even Do?)
They make, trade, and sell:
- Gold, diamond & platinum jewelry
- Custom bridal designs (Rajkot-style)
- Services like cleaning, resizing, repairs (aka “repeat business”)
Retail-focused, single-region play (Gujarat-heavy), but expanding fast. 20+ lakh customers served.
4. Financials Overview
| FY | Sales | OPM | PAT | ROCE | ROE |
|---|---|---|---|---|---|
| FY23 | ₹313 Cr | 13% | ₹30 Cr | 18% | 18% |
| FY24 | ₹544 Cr | 13% | ₹50 Cr | 25% | 20% |
| FY25 | ₹588 Cr | 15% | ₹60 Cr | 26% | 20.5% |
Solid performance:
Consistent growth, improving profitability, and shockingly decent margins for a jewelry retailer.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹98.6 |
| P/E | 19.3 |
| Book Value | ₹27.3 |
| P/B | 3.6x |
Peers trade at:
- Titan: 91x
- Kalyan: 86x
- Senco: 37x
| Valuation Method | Fair Value Range |
|---|---|
| P/E 25x | ₹120–₹125 |
| Conservative Base (P/E 18x) | ₹85–₹95 |
| Premium with expansion | ₹130–₹140 (if national scaling succeeds) |
EduFair Value Band™: ₹85–₹130
Gold is glittering, but corporate governance weighs down the shine.
6. What’s Cooking – News, Triggers, Drama
- July 2023: Income Tax Department raids premises
- Jan 2023: Statutory auditor resigns. New one hasn’t screamed (yet)
- Inventory levels high: 272 days—are we hoarding or prepping for wedding season till 2029?
- Retail frenzy: Shareholders grew from 3.2k → 78k+ in 2 years!
7. Balance Sheet
| FY | Equity | Reserves | Borrowings | Total Assets |
|---|---|---|---|---|
| FY23 | ₹24 Cr | ₹192 Cr | ₹34 Cr | ₹259 Cr |
| FY24 | ₹24 Cr | ₹241 Cr | ₹51 Cr | ₹321 Cr |
| FY25 | ₹24 Cr | ₹299 Cr | ₹43 Cr | ₹376 Cr |
Verdict:
Debt manageable, reserves growing, equity constant. Solid fundamentals—but watch for borrowings ticking up again.
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹-24 Cr | ₹-2 Cr | ₹-2 Cr | ₹-28 Cr |
| FY24 | ₹-26 Cr | ₹-2 Cr | ₹16 Cr | ₹-11 Cr |
| FY25 | ₹+17 Cr | ₹-2 Cr | ₹-12 Cr | ₹+3 Cr |
Translation:
Finally got the cash register to ring in FY25. Earlier years = inventory trap + capex hangover.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 18% | 25% | 26% |
| ROE | 18% | 20% | 20.5% |
| Inventory Days | 321 | 245 | 272 |
| Debtor Days | 1 | 0 | 0 |
| CCC (Cash Conversion Cycle) | 310 | 243 | 268 |
Red Flag:
Inventory bloated. Either Radhika’s prepping for a nationwide wedding bonanza or inventory valuation is being padded.
10. P&L Breakdown – Show Me the Money
| FY | Sales | OPM % | PAT | EPS |
|---|---|---|---|---|
| FY23 | ₹313 Cr | 13% | ₹30 Cr | ₹2.52 |
| FY24 | ₹544 Cr | 13% | ₹50 Cr | ₹4.20 |
| FY25 | ₹588 Cr | 15% | ₹60 Cr | ₹5.09 |
EPS doubled in 2 years. That’s shine. But remember—auditor resignations don’t come gift-wrapped.
11. Peer Comparison
| Company | CMP | P/E | ROCE | Sales (₹Cr) | PAT (₹Cr) |
|---|---|---|---|---|---|
| Titan | ₹3,433 | 91.4 | 19.1% | ₹60,456 | ₹3,336 |
| Kalyan | ₹600 | 86.8 | 14.3% | ₹25,045 | ₹714 |
| Senco | ₹373 | 36.9 | 10.0% | ₹6,259 | ₹165 |
| Radhika | ₹98.6 | 19.3 | 25.8% | ₹588 | ₹60 |
Conclusion:
Tiny player, killer margins. But valuation discount persists thanks to scale and risk.
12. Miscellaneous – Shareholding, Promoters
| Quarter | Promoter % | FII % | DII % | Public % |
|---|---|---|---|---|
| Jun ‘22 | 63.65% | 0.00% | 1.59% | 34.75% |
| Mar ‘25 | 63.73% | 0.03% | 0.00% | 36.23% |
Takeaways:
- Promoter holding stable
- Public investor count jumped 25x in 2 years
- FIIs still treating it like cursed heirloom jewelry
13. EduInvesting Verdict™
Radhika Jeweltech is a regional rocket ship with fat margins, explosive EPS growth, and a loyal customer base. But governance hiccups, inventory stuffing, and zero institutional love create a glitter-vs-guts dilemma.
That said, with ROCE at 26%, a clean-ish balance sheet, and multibagger momentum, this remains a high-beta, high-karat bet—if you can stomach the smallcap volatility and regulatory glances.
EduFair Value Band: ₹85–₹130
Could dazzle. Could fizzle. Handle with tweezers.
Metadata
– Written by EduInvesting Research Team | 18 July 2025
– Tags: Radhika Jeweltech, Gold Stocks, Jewelry Retail, Smallcap Multibagger, Rajkot Retailers, Inventory Risks, Auditor Resignation, EduSatire
