🪞 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 companydesigns, 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 butrecently IPO’d in Dec 2023, raising ₹100+ Cr
🚚 Ships to72 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 |
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