IPO closes on 25 Jun'26
Advit Jewels Ltd
Minimum Investment
₹ 13,800 / 100 shares
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- Advit Jewels Ltd (AJL) has reported strong financial performance in recent years, with revenue, EBITDA and profit after tax growing at a CAGR of 64%, 71% and 56%, respectively, during FY23–FY25.
- Although the IPO valuation is higher than some listed peers, it appears reasonably justified given the company’s solid growth trajectory and superior margins.
- AJL does operate with a relatively elongated working capital cycle due to higher inventory requirements, which is typical for the jewellery business. However, the company generated positive cash flow from operations in 9MFY26 and has already begun reducing debt through internal accruals.
- Further, it intends to use a significant portion of the IPO proceeds for debt repayment. This is expected to strengthen the balance sheet, reduce finance costs and boost profitability going forward.
About the company
Founded in
29 Oct'19
Managing director
Nitin Gilara
- AJL is a Jaipur-based jewellery manufacturer focused on traditional and contemporary handcrafted fine jewellery under the heritage brand ‘Rambhajo’. It specialises in Kundan, Polki, diamond and studded jewellery, with a product portfolio covering necklaces, earrings, rings, bangles and customised made-to-order designs.
- AJL operates through an integrated manufacturing setup spread across a 6,450 sq. ft. leased facility in Jaipur. Its revenue profile is largely wholesale-led, with B2B contributing ~82% of FY25 revenue and B2C contributing ~18%. Distribution is primarily driven through dealers, showrooms and retailers, supported by select exclusive retail orders.
STRENGTHS
- Impressive Track Record: AJL has delivered robust financial growth, with revenue from operations increasing at a 64% CAGR between FY23 and FY25. Profitability has also scaled meaningfully, with EBITDA and net profit growing at CAGRs of 71% and 56%, respectively, over the same period.
- Solid Margins: AJL maintains a healthy profitability profile, with an EBITDA margin of 27.73% and net profit margin of 20.30% in FY25, both higher than its listed peers.
- Superior Return Metrics: AJL reported strong return metrics in FY25, with Return on Equity (RoE) of 55.79% and Return on Capital Employed (ROCE) of 27.48%, the highest among its listed peers. This indicates efficient capital utilisation and strong profitability relative to shareholder equity and capital employed.
- Strong Heritage & Brand Recall: AJL operates under the legacy brand name “Rambhajo” since 1921, which provides strong brand recognition, credibility and consumer trust in the premium jewellery segment.
- Long-standing Customer Relationships: AJL serves premium retail stores and wholesalers and enjoys a high repeat customer rate of 79% in FY25. This ensures consistent order inflows and revenue visibility.
RISK FACTORS
- Client Concentration: AJL depends on a limited customer base. In 9MFY26, the top 5 and top 10 customers contributed 38.15% and 56.49% of revenue, respectively. Any loss of key customers could impact revenue, profitability and cash flows.
- Supplier Concentration: AJL procured approximately 76% of raw materials from its top 5 suppliers in FY25. Any disruption, delay or change in supplier terms could impact production and margins.
- Working-Capital Pressure: Inventory days increased from 91 days in FY23 to 199 days in FY25, while trade payable days declined from 39 days in FY24 to 7 days in FY25. This may increase liquidity pressure, financing costs and inventory-related risks.
- Cash Flow Concerns: AJL reported negative operating cash flows in each of the last three fiscals. If this trend continues, it could affect working-capital flexibility, operational stability and the company’s ability to fund future growth efficiently.
- Borrowing Dependence: AJL has historically relied on borrowings for working capital. As of December 31, 2025, around 42% of working-capital requirements were funded through borrowings, making access to financing critical.
- High Attrition: AJL has a small employee base and has witnessed high attrition, with the FY25 attrition rate reaching nearly 50% and the three-year weighted average at 38.95%. This may affect operational continuity and efficiency.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 165 crore
Fresh Issue
₹ 165 crore
OFS
₹ -
Price range
₹ 130 - 138
Lot size
100 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for:
- Funding the company’s incremental working-capital requirements;
- Repayment or prepayment of certain outstanding borrowings availed from scheduled commercial banks; and
- General corporate purposes.
Dates
Bidding open
23 Jun'26
Bidding close
25 Jun'26
Allotment date
29 Jun'26
Refund date
30 Jun'26
Listing
1 Jul'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
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