Radhika Jeweltech – Small base Large aspiration

Radhika jeweltech

Radhika Jewellers is into trading of Gold & Diamond Jewellery and ornaments. With over three decades of expertise, the legacy began in 1987 when Mr. Ashok Zinzuwadia and his father, Mr. Mathurbhai Zinzuwadia.

Starting from a modest 200 sq. ft. store with seven employees and approximately 15 kg of gold jewellery. Radhika Jewellers became a Public Limited company with effect from 22nd July 2016.

Company’s Value: Mr. Ashok and Mr. Haresh believed that when you have something exceptional along with top-notch quality and humble after-sales service, customers are enticed to come to you.

Chairman’s Vision: Mr Ashok Zinzuwadia, his aim is to be one of the best retail jewellery brands and to build a strong organisation with competent management system. He has 35 years of experience of the jewellery industry.

New generation: Mr Darshit, is the eldest son of Mr Ashok joined the family business in year 2014. A commerce graduate and a diploma holder in Graduate Diamonds Program from the Gemological Institute of America (GIA).

Product Portfolio:

Gold: Ring, Earrings, Necklace, Gold Bangles, Pendant Sets, Bracelets

Diamond: Ring, Earrings, Necklace, Gold Bangles, Pendant Sets, Bracelets

Platinum Jewellery, Polka

Services:

Valet Parking
Baby Care Room
Bridal Lounge
Jewellery Repair Services Include Stone Setting And Remounting
Jewellery Valuation
Free Home Delivery
Laser Soldering

Business Operation:

Currently the company operates in Rajkot with one store covering a retail space of 2,500 sq. ft. and a new store with 10,000 sq ft of retail space. Employee count, 110. The retail outlets stock a wide range of jewellery designs for both men and women.

Financials

Marketcap: 756 cr

PE: 17.4

ROCE: 17.9%

ROE: 14.8%

Debt to equity: 0.21, little debt

Revenue growth, 3 years: 22%

Profit growth, 3 years: 42%

Cash: 9 cr, currently cash is all time low due to major expansion plans the company is undertaking.

Fixed asset has jumped from 2 cr to 14 cr in a year.

Revenue Breakup:

In FY21, the company generated revenue majorly from Pure Gold and Gold Jewelry ~98% while the rest ~2% was from the sale of Loose Diamond and Diamond Jewelry and Platinum Jewelry.

Positive:

1. Bridal Jewellery their specialty
2. Management very active on expansion.
3. Highly motivated management.
4. 1st phase: new store expansion to cover Saura Rashtra region within next 1 year.
   2nd phase: new stores within Gujarat
   3rd phase : new store within India
   Plan to open total of 4-5 stores. Most probably all expansion plan to be funded from cash flow.
5. Entering into E-commerce platform.

Negative:

1. New generation management ability still to be tested.
2. Delay in execution plans.
3. Macro effects, slowdown in consumption, Inflation.
4. Gold price fluctuation.
5. Company brand unknown outside rajkot.
6. Strong competition from other players.