Can Lalithaa Jewellery Mart IPO deliver long-term growth for high-risk investors?

The company's entire revenue comes from the southern parts of India, signalling geographical concentration. Its revenue per store exceeds that of peers, while revenue per square feet (sq ft) is at the higher end of the peer range. The valuation is at the lower end compared with peers. Given these factors, investors with high-risk appetite may consider the IPO.

Business

Financials

Revenue from operations jumped 22.1% annually to ₹25,023.9 crore and net profit surged 67.5% annually to ₹1,009.8 crore between FY24 and FY26. Operating margin before depreciation and amortization (EBITDA margin) increased to 6.7% in FY26 from 4.1% in FY24 compared with 5.7-20% for its peer group. Revenue per store grew to ₹410.2 crore from ₹316.8 crore over FY24-26, well above the peer range of ₹42-138 crore. Revenue per sq ft increased to ₹3.8 lakh in FY26 from ₹2.9 lakh in FY24, placing it near the upper end of the peer range of ₹1.4-4.5 lakh.

Valuation

Based on the post-IPO equity and net profit for FY26, the company is valued at a price-earnings (P/E) multiple of upto 11, which is at the lower end of the P/E range of 9-46 for peers including Tribhovandas Bhimji Zaveri, Senco Gold, PC Jeweller, P N Gadgil Jewellers, Kalyan Jewellers India and Thangamayil Jewellery.

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