Shringar Mangal Sutra IPO Review

Business Overview

Shringar Mangal Sutra specializes in manufacturing, designing, and retailing of jewellery with a focus on traditional Mangal Sutras, gold ornaments, and diamond jewellery. The company operates through a strong retail presence, primarily in Maharashtra, and caters to middle-income and high-income groups with customized jewellery offerings. The brand enjoys a strong regional presence and is gradually expanding into other states.

Financial Performance

Revenue Growth: Rs. 951.29 cr. (FY23) → Rs. 1,102.71 cr. (FY24) → Rs. 1,430.12 cr. (FY25). A CAGR of ~22%.
Profitability: PAT rose from Rs. 23.36 cr. (FY23) → Rs. 61.11 cr. (FY25), showing improving efficiency.
EBITDA Margin: Improved to 6.47% in FY25 from 4.08% in FY23.
Debt & Leverage: Borrowings increased to Rs. 123.11 cr. but remain within comfortable limits, with Debt-to-Equity at ~0.61x.
Net Worth: Grew strongly from Rs. 105.72 cr. (FY23) to Rs. 200.85 cr. (FY25).

Strengths

Strong regional brand identity in the jewellery market.
Consistent growth in revenue & profitability.
Improving margins, indicating better cost efficiency.
Moderate debt levels with growing net worth.

Risks

Jewellery business is highly sensitive to gold price volatility.
Regional concentration—major dependence on Maharashtra market.
Working capital intensive business (inventory heavy).

Valuation

Peers: Titan 40–45x, Kalyan ~28x, Senco ~25x.

EPS FY25 ~Rs. 6.4 (post-dilution ~Rs. 6.2–6.3).

P/E at Rs. 103 = ~16x.

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