CM RATING | 38/100 |
The company claims to have pioneered the western retail jewellery format in exclusive Indian showroom. The retail stores are developed exclusively on a company-operated model, which ensures higher control and higher margin.
Its entire retail jewellary is manufactured in-house at its four manufacturing facilities (of which one is located in China) spread over area of 84,500 sq feet. A good portion of its studded-diamond jewellery export is also manufactured in-house.
Nearly 81% of its total sales as on March 2012 were predominately studded-diamond jewellery exports to countries like Australia, China, EU, South Africa, UK and US. It caters to marquee customers like Walmart, Zale Corp, Sterling Jewellers, Dicia Jewels, JC Penny, Helzberg, and JKB International. About 10 customers constitute 70% of its export sale.
The company is entering the capital market to raise about Rs 109.50 crore by issuing around 78.04 lakh equity share of face value of Rs 10 each at the price range of Rs 225 to Rs 230 per share. The proceeds from issue of shares will be used by the company for setting up 20 new retail stores and to pay off about Rs 50 crore of working capital loans. Along with fresh issue, there is also offer for sale of Rs 70 crore by selling shareholder Fabrikant HK Trading.
The company has also allotted about 18 lakh equity shares to Crystalon Finanz AG, which is an investment arm of Austria-based Swarovski Group at price of about Rs 225 per share and raised about Rs 40 crore as pre IPO placement.
Strengths
Weaknesses
Valuation
Consolidated net sales in FY 2012 were up by 22% over FY 2011 and increased focus on retail stores, which fetch better margin, resulted in higher OPM of 9.4% and OP of Rs 131.82 crore, up by 36%, and PAT rose 33% to Rs 54.12 crore. EPS on post-IPO equity of Rs 24.5 (assuming IPO price of Rs 230 per share) and Rs 24.70 crore (assuming IPO price of Rs 225), works out to Rs 22.1 and Rs 21.9, respectively.
The shares are being offered in the price band of Rs 225 to Rs 230 per equity share of Rs 10 face value. The P/E at the lower band works out to 10.1 times and at the upper band works out to 10.4 times. Diamond and jewellery exporters used to trade at low P/Es due to the low margin in this business. However, gradually, many of them have ventured into retailing in domestic market. Those who succeeded have been able to garner better margin and higher P/E. Tara Jewelss performance on the stock market will also depend on how much success it achieves in its domestic retail business.
Tara Jewels: IPO Highlights | |
Sector | Diamond/Jewellary |
No. of shares on offer (lakhs) | 78.04 |
Issue Size (Rs crore) | 179.50 |
Offer on sale (Rs crore) | 70 |
Fresh Issue (Rs crore) | 109.50 |
Price Band (Rs) | 225-230 |
Post-issue equity (Rs crore) | 24.50 |
Face Value in Rs | 10 |
Post-issue promoter stake (%) | 60.1 |
Issue open date | 21st Nov 2012 |
Issue close date | 23rd Nov 2012 |
Listing | BSE and NSE |
Rating | 38/100 |
Tara Jewels: Consolidated Financials | |||||
0903(12) | 1003(12) | 1103(12) | 1203(12) | 1305(02) | |
Net Sales | 754.16 | 804.43 | 1142.29 | 1399.09 | 178.87 |
OPM (%) | 7.2 | 8.3 | 8.5 | 9.4 | 11.0 |
OP | 54.55 | 66.82 | 97.06 | 131.82 | 19.75 |
Other Income | 1.91 | 1.79 | 1.28 | 1.97 | 0.25 |
PBDIT | 56.46 | 68.61 | 98.34 | 133.79 | 20.00 |
Interest | 37.57 | 27.28 | 32.54 | 47.05 | 9.25 |
PBDT | 18.89 | 41.33 | 65.80 | 86.74 | 10.75 |
Depreciation | 6.60 | 10.99 | 12.38 | 14.23 | 2.28 |
PBT before forex gain/loss | 12.29 | 30.34 | 53.42 | 72.51 | 8.47 |
EO | 0.90 | 0.00 | 0.00 | 0.00 | 0.00 |
PBT after EO | 12.29 | 30.34 | 53.42 | 72.51 | 8.47 |
Tax | 4.71 | 5.81 | 12.17 | 16.97 | 1.97 |
Net Profit before MI | 7.58 | 24.53 | 41.26 | 55.54 | 6.50 |
Less :- MI | 0.54 | 0.41 | 0.56 | 1.42 | 0.00 |
PAT after MI | 7.04 | 24.11 | 40.70 | 54.12 | 6.50 |
EPS (Rs)** | 2.9 | 9.8 | 16.5 | 21.9 | # |
EPS (Rs)* | 2.9 | 9.8 | 16.6 | 22.1 | # |
** Annualised on post-issue equity of Rs 24.70 crore (at conversion price of Rs 225 per share); Face value Rs 10 * Annualised on post-issue equity of Rs 24.50 crore (at conversion price of Rs 230 per share); Face value Rs 10 # Not annualised due to seasonality of business Figures in crore |
Powered by Capital Market - Live News
19 Apr, 2024 to 23 Apr, 2024
No Record Found
No Record Found
Company | List Price | List Date | Issue Price | LTP (%Chg) |
---|---|---|---|---|
50.00 | 29 Nov 2023 | 32.00 | +168.15 (236.3%) | |
445.00 | 27 Sep 2023 | 385.00 | +1,229.60 (176.31%) | |
431.00 | 14 Jul 2023 | 317.00 | +967.00 (124.36%) | |
710.00 | 28 Dec 2023 | 524.00 | +1,327.80 (87.01%) | |
1,300.00 | 09 May 2023 | 1,080.00 | +2,399.00 (84.54%) | |
900.05 | 18 Aug 2023 | 741.00 | +1,622.60 (80.28%) | |
942.50 | 27 Jul 2023 | 500.00 | +1,663.30 (76.48%) | |
162.00 | 22 Sep 2023 | 164.00 | +283.10 (74.75%) | |
143.00 | 03 Oct 2023 | 119.00 | +247.30 (72.94%) | |
401.00 | 10 Jul 2023 | 265.00 | +673.90 (68.05%) | |
792.00 | 13 Nov 2023 | 792.00 | +1,240.00 (56.57%) | |
103.90 | 26 Dec 2023 | 55.00 | +162.00 (55.92%) | |
281.55 | 21 Sep 2023 | 211.00 | +437.95 (55.55%) |
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.