1. At a Glance
Shanti Gold is looking to sparkle on Dalal Street with a ₹360 Cr IPO at ₹199/share. Pure fresh issue. No OFS drama. They craft 22kt CZ casting jewellery, ship nationwide, and cater to names like Joyalukkas and Lalitha Jewellery. But at 25.7x P/E, is the shine worth the price?
2. Introduction with Hook
If Titan is the Tanishq of India, Shanti Gold is the behind-the-scenes wizard bedazzling the jewellery brands with 22kt magic. Think of it as the supplier of sparkle — now demanding market stardom.
- IPO Size: ₹360.11 Cr
- Price Band: ₹189–₹199
- Retail Investment: ₹14,925 (1 lot of 75 shares)
- Annual Revenue: ₹1,112 Cr (FY25)
- PAT Growth: +108% YoY
Is this a goldmine opportunity… or cubic zirconia in disguise?
3. Business Model (WTF Do They Even Do?)
Shanti Gold International is a B2B gold jewellery manufacturer, not a retail brand.
- Products: CZ-studded 22kt gold jewellery — bangles, rings, necklaces
- Customers: Big-name retailers like Joyalukkas, Alukkas, Vysyaraju
- Model: In-house production + outsourced finishing = cost-effective scale
- Design Edge: 80 CAD designers + 400+ designs/month
- Presence: Operations across 15 states + 1 UT; manufacturing unit in Mumbai
It’s a goldsmith-meets-CAD-lab operation running like a high-efficiency factory.
4. Financials Overview
₹ Cr | FY23 | FY24 | FY25 |
---|---|---|---|
Revenue | 682.3 | 715.0 | 1,112.5 |
EBITDA | 45.6 | 53.4 | 97.7 |
PAT | 19.8 | 26.9 | 55.8 |
Net Worth | 69.8 | 96.7 | 152.4 |
Total Debt | 165.3 | 210.7 | 233.0 |
Highlights:
- Revenue up 56%, PAT up 108% YoY
- Net margin: ~5%
- Strong jump in EBITDA, but also rising borrowings
5. Valuation
Metric | Value |
---|---|
EPS (Post IPO) | ₹7.75 |
P/E (Post) | 25.7x |
P/B | 7.05 |
RoNW | 44.85% |
ROCE | 25.7% |
Fair Valuation Estimate:
- Peer range: 20–28x P/E
- Shanti’s growth & ROE justify a premium
- Fair Range: ₹175 – ₹210
At ₹199, pricing is at the upper end, but not outrageous, given the margins + growth.
6. What’s Cooking – News, Triggers, Drama
- ₹200 Cr for working capital = aggressive expansion
- New Jaipur plant = additional capacity & North India reach
- Existing relationship with pan-India retail chains
- Huge surge in CAD-led mass custom jewellery trend
- India’s gold demand rebounding = tailwind
- No OFS = Promoters not cashing out. Full proceeds to company ✅
This IPO is about scale, not brand-building.
7. Balance Sheet
Item | FY25 |
---|---|
Assets | ₹419.8 Cr |
Net Worth | ₹152.4 Cr |
Total Debt | ₹233.0 Cr |
Debt/Equity | 1.60 ❌ |
Post-IPO D/E | Likely down to ~1.0 ✅ |
They’re investing, not offloading. Post-IPO debt comfort = better ratings = cheaper funding.
8. Cash Flow – Sab Number Game Hai
₹ Cr | FY23 | FY24 | FY25 |
---|---|---|---|
Cash Flow Ops | ₹31.6 | ₹37.8 | ₹65.2 |
CapEx | ₹-25.0 | ₹-28.3 | ₹-42.6 |
Debt Movement | ₹+30.0 | ₹+45.0 | ₹+20.0 |
They’re spending on plant, inventory, and machines. This is a working capital-heavy biz. Efficiency is the game.
9. Ratios – Sexy or Stressy?
Ratio | Value |
---|---|
ROCE | 25.70% ✅ |
RoNW | 44.85% ✅ |
PAT Margin | 5.05% ✅ |
EBITDA Margin | 8.83% ✅ |
Debt/Equity | 1.60 ❌ |
P/E | 25.7x ⚠️ |
P/B | 7.05x ⚠️ |
Not ultra-cheap, but the fundamentals are shiny like their stock-in-trade.
10. P&L Breakdown – Show Me the Money
₹ Cr | FY23 | FY24 | FY25 |
---|---|---|---|
Revenue | 682.3 | 715.0 | 1,112.5 |
EBITDA | 45.6 | 53.4 | 97.7 |
Net Profit | 19.8 | 26.9 | 55.8 |
EBITDA Margin | 6.7% | 7.5% | 8.83% |
Net Margin | 2.9% | 3.8% | 5.05% |
Margin expansion story — growing profits faster than topline. Good sign.
11. Peer Comparison
Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E | ROCE | Segment |
---|---|---|---|---|---|
Shanti Gold | 1,112 | 55.8 | 25.7x | 25.7% | B2B Jewellery |
Senco Gold | 5,087 | 161 | 28x | 16% | B2C Retail |
Kalyan Jewellers | 17,203 | 430 | 33x | 12% | B2C Retail |
Titan (Jewellery) | 36,000 | ~3,000 | 70x | 28% | B2C + B2B |
Shanti = smaller, leaner, and more B2B efficient than retail chains.
12. Miscellaneous – Shareholding, Promoters
Promoters | Pre IPO | Post IPO |
---|---|---|
Pankaj Jagawat & Co. | 99.99% | 74.89% |
- No Offer for Sale
- Lead Manager: Choice Capital Advisors
- Registrar: Bigshare
- Employees: 222 + 100 contract staff
- Manufacturing unit: Mumbai (to be complemented by Jaipur)
Solid promoter skin-in-the-game.
13. EduInvesting Verdict™
This isn’t a jewellery brand play. This is a jewellery engine play.
Shanti Gold isn’t opening showrooms; it’s opening factories and fulfilling supply chains.
- Strong growth, excellent margins
- Healthy return ratios
- Aggressive expansion + full IPO proceeds for growth
- Priced at ~26x — fair for a company with 108% PAT growth
If you want quiet compounding with glitter, not noise and billboards — this IPO fits your portfolio like a perfectly polished ring.
Metadata
– Written by EduInvesting Team | July 23, 2025
– Tags: Shanti Gold International IPO, Jewellery IPO, Gold Manufacturing, CZ Jewellery, Joyalukkas, Kalyan, Bigshare, Choice Capital, IPO Review