🪞 At a Glance
RBZ Jewellers is a smallcap gold jewellery manufacturer that sells both through B2B job work and its own Harit Zaveri retail chain. With 65%+ profit CAGR and a ROCE of 20%+, it’s making money — but zero dividends, rising working capital, and a mysterious retail expansion could dull the shine.
1. 🪙 WTF Do They Even Do?
RBZ = Retail + B2B + Job Work. All three, all gold.
- Based in Ahmedabad, the company designs, manufactures, and sells gold jewellery
- 2 business verticals:
- Wholesale + Job work (B2B) – Majority of revenue, clients include big national retail chains
- Harit Zaveri Retail (B2C) – One flagship showroom in Ahmedabad
- Claim to fame: Operating since 2008 but recently IPO’d in Dec 2023, raising ₹100+ Cr
🚚 Ships to 72 cities across 19 states, mainly via job-work + wholesale distribution
2. 📊 Financials – Shimmering or Shaky?
| 💰 Metric | FY20 | FY23 | FY25 | CAGR (5Y) |
|---|---|---|---|---|
| Sales (₹ Cr) | 182 | 288 | 530 | 24% |
| Net Profit (₹ Cr) | 3 | 22 | 39 | 65% |
| OPM (%) | 6% | 13% | 12% | Stable-ish |
| ROE (%) | 7.0% | 17.2% | 17.2% | 🔥 Consistent |
| ROCE (%) | 18% | 16% | 20% | 🔁 Improving |
| EPS (₹) | 7.5 | 7.4 | 9.7 | Not IPO-hyped |
🧠 TLDR: Revenue doubled in 2 years. Profits almost 2x. But margins and cash flow remain under pressure.
3. 📉 Valuation – Cheap Gold or Costume Jewellery?
- CMP: ₹146
- Market Cap: ₹580 Cr
- P/E: 15x — Fair for its segment, lower than Kalyan (80x), Titan (100x)
- Book Value: ₹61 → P/B ~2.4x
- PEG (Profit Growth / PE) = 65 / 15 = 4.33 → That’s a 🔥 bargain by PEG standards
🎯 Fair Value Range
| Method | Value |
|---|---|
| EPS ₹9.7 × PE 18 | ₹174 |
| EPS ₹9.7 × PE 22 | ₹213 |
🟢 FV Range: ₹174–₹213
📉 Upside: 19%–46% from CMP
4. 📰 What’s Cooking – IPO Drama & Harit Zaveri Showroom
- 💸 IPO in Dec 2023 to raise ₹100+ Cr → Now fully utilized (per CRISIL monitoring report)
- 🏬 Flagship Harit Zaveri showroom in Ahmedabad still doing decent business — but no aggressive retail rollout yet
- 🏗️ Capex for showroom expansion and B2B backend scaling hinted
- 📉 Stock hit ₹252 highs post IPO… now cooled off to ₹146 (-42%)
5. 🧾 Balance Sheet – Cash Nahi, Gold Hai
| Metric | FY25 |
|---|---|
| Reserves | ₹205 Cr |
| Borrowings | ₹91 Cr |
| Total Assets | ₹352 Cr |
| Net Debt / Equity | ~0.4x |
| Working Capital Days | 206 |
💥 Working capital rising, thanks to:
- 📦 Inventory Days: 255
- 🔁 Cash Conversion Cycle: 260 days = not great for liquidity
6. 💵 Cash Flow – Gold Toh Bech Rahe Hain… Paise?
| Year | CFO (₹ Cr) |
|---|---|
| FY22 | ₹+1 |
| FY23 | ₹–11 |
| FY24 | ₹–48 (!!) |
| FY25 | ₹–15 |
⛔ Negative cash flow 3 years in a row, despite rising PAT — classic “we made profit on paper” situation.
7. 📉 Ratios – Titan Level? Not Yet.
| Ratio | Value FY25 |
|---|---|
| ROE | 17.2% |
| ROCE | 20.2% |
| OPM | 12.1% |
| Net Profit Margin | 7.4% |
| Debt/Equity | 0.44x |
These are actually decent for a small jewellery manufacturer. But not luxury Titan-level metrics.
8. 📉 P&L Breakdown – Show Me the Paisa
| Year | Sales ₹Cr | Profit ₹Cr | EPS ₹ |
|---|---|---|---|
| FY20 | 182 | 3 | 7.5 |
| FY23 | 288 | 22 | 7.4 |
| FY25 | 530 | 39 | 9.7 |
Bonus: Q4FY25 Net Profit ₹8.57 Cr → Strong season finish
9. 🙋♀️ Shareholding – Public Buying the Dip?
| Shareholder Type | Dec ’23 | Mar ’25 |
|---|---|---|
| Promoter | 75.0% | 75.0% |
| FIIs | 4.33% | 0.59% ❌ Exit-mode |
| DIIs | 3.03% | 1.58% ❌ |
| Public | 17.6% | 22.8% ✅ Increasing |
🚨 Foreign investors dumped post-IPO. Retail investors stepped in. Good? Bad? Time will tell.
🧠 EduInvesting Verdict™
✅ The Good:
- B2B + B2C model with profitability
- ROE/ROCE combo >17%
- Reasonable valuation, PEG < 1
- Sales and PAT growth looking strong
❌ The Red Flags:
- Zero dividend payout
- Cash flow negative despite profits
- High inventory cycle = working capital stress
- No signs of retail expansion post-IPO… just words
💡 Final Gold Verdict:
RBZ is no Titan — but for ₹580 Cr market cap, you’re getting a 60% sales growth company with real earnings and a respected brand (Harit Zaveri). If they manage their cash cycle and execute retail scaling… this could be a ₹1000 Cr player in 2 years.
🧮 FV Range: ₹174 – ₹213
💥 CMP: ₹146
🤔 EduInvesting Mood: “IPO heat chali gayi hai… but the gold hasn’t melted yet.”
✍️ Written by Prashant | 📅 June 27, 2025
Tags: RBZ Jewellers, Harit Zaveri, jewellery stocks, SME IPO, gold manufacturing, retail jewellery, B2B business, EduInvesting, stock analysis, Titan vs RBZ, undervalued stocks
