Management

• Pankajkumar H Jagawat (Chairman and Managing Director)
• Manojkumar N Jain (Whole- Time Director)
• Shashank Bhawarlal Jagawat (Non-Executive Director)
• Yash Mahansaria (Independent Director)
• Bhavika Yash Ghuntla (Independent Director)
• Purvi Pathik Shah (Independent Director)
• Shriram Kannan Iyengar (Chief Financial Officer)

Use of Proceeds

The total issue size is Rs. 360.11 cr which entirely comprises of fresh issue of Rs.360.11 cr with no offer for sale component (OFS). The company intends to utilize a portion of the Net Proceeds towards funding of capital expenditure requirements towards setting up of the proposed Jaipur facility (46.30 cr), funding working capital requirements of the company (200 cr) and repayment and/or pre-payment, in full or part, of certain borrowings availed by the company (Rs 17 cr).

Competitive Strengths

Wide Range of Jewellery Designs Driven by Team of Experts Shanti Gold International specializes in designing and producing 22Kt CZ gold jewellery, offering a wide range of intricately crafted pieces including bangles, rings, necklaces, and complete sets. The company caters to a wide price range, addressing demand from weddings to festive and daily wear segments. This broad product variety allows it to serve diverse client preferences and build strong, long-standing relationships with reputed jewellery houses such as Joyalukkas, Lalithaa, Alukkas, Vysyaraju Jewellers, and Shree Kalptaru Jewellers. Its customer base spans 15 Indian states, 2 union territories, and four international markets, underlining its broad market presence and trusted service record.

Design Expertise Enabled by CAD Technology and Skilled Professionals A key strength of the company is its large and skilled design team. As of May 31, 2025, Shanti Gold employed 79 CAD designers who produce over 400 new designs each month using computer-aided design technology. This capability ensures continuous innovation and responsiveness to changing trends and customer tastes across both Indian and international markets. The team enables the company to maintain a dynamic product portfolio, regularly launching new collections suited to regional preferences. Supporting this is a 21-member sales and marketing team that plays a crucial role in identifying customer needs and ensuring smooth delivery across the supply chain.

Complete In-House Manufacturing: Ensuring Quality at Every Step Shanti Gold operates a fully integrated in-house manufacturing setup that allows control over design, production, and packaging, enabling consistent product quality. The company uses advanced machines such as casting machines, steamers, induction melters, and air compressors. Precision tasks like manual stone setting are executed by trained outsourced artisans. The manufacturing facility in Andheri East, Mumbai, covers 13,448.86 sq. ft. and has an annual capacity of 2,700 kg. This self-reliant model reduces external dependencies, supports customization, and ensures efficiency, allowing the company to meet varied client demands with quality and consistency in every piece produced.

Experienced Promoters with Proven Execution Capabilities The company’s growth is strongly supported by its experienced promoters. Pankajkumar H. Jagawat and Manojkumar N. Jain each bring over two decades of industry experience, while Shashank Bhawarlal Jagawat adds 16 years of sectoral knowledge. Their leadership has enabled Shanti Gold to expand operations and deepen stakeholder relations. The promoters also serve as directors in related jewellery ventures, including Utssav CZ Gold Jewels and Uzuri Jewels. Their expertise and networks provide a strong foundation for the company's continued success and market responsiveness.

Established Relationships with Corporate and Jewellery Businesses Shanti Gold has successfully built long-term relationships with several corporate jewellery clients, including major brands such as Joyalukkas, Lalithaa, Alukkas, Vysyaraju, and Shree Kalptaru. The company's ability to offer customized collections tailored to specific client needs and market preferences is central to these partnerships. With the Indian retail sector expanding rapidly, backed by rising demand and supportive policies, Shanti Gold ensures its jewellery meets both aesthetic and quality expectations. The company maintains strict quality control and offers products that combine design excellence with affordability, supporting wholesale clients in aligning with their customer demands effectively.

Peer Comparison

Key Risks & Concerns

• Around one-third of the company's revenue in the last three financial years came from the top 10 customers. Losing any of these key clients, or if their financial health weakens or they reduce orders, could negatively impact business performance, profitability, and cash flow.
• A major part of revenue, nearly 73% in FY2025, was generated from Southern India. This heavy regional focus makes the business vulnerable to local economic conditions, political issues, and cultural factors that may affect demand.
• The business is primarily focused on selling 22kt CZ jewellery. Although there are plans to expand into machine-made plain gold jewellery at a proposed Jaipur facility, the current concentration increases exposure to shifts in consumer preferences and fluctuations in demand, which could impact growth and stability.
• Heavy reliance on gold exposes the company to market volatility. Limited availability or rising costs of high-quality gold could adversely affect operations, profitability, and prospects.

Outlook and Valuation

SGIL is well-placed to benefit from India’s formalizing gold jewellery sector, which contributes ~7% to GDP and 15% of exports. With a new Jaipur plant (1,200 kg/year) focused on fast-moving, machine-made plain gold jewellery, SGIL is strategically expanding into North India. The company’s B2B model, expanding EBITDA and PAT margins, and consistent growth position it strongly within the market. Rising consumer preference for branded, hallmarked jewellery and supportive government reforms like hallmarking and gold monetization further strengthens the industry’s outlook. SGIL’s competitive pricing and growth plans make it an efficient and promising player in the organized jewellery manufacturing space.

SGIL demonstrates a compelling financial track record, with revenue growing at a CAGR of 28% from Rs.679 Cr to Rs.1,106 Cr and PAT expanding at a robust 68% CAGR from Rs.19 Cr to Rs.55 Cr over the past three years. Strong ROCE of 25.70% and RONW of 44.85% in FY25 further underscore the company’s operational efficiency. With stable working capital cycles and expanding margins, SGIL offers sound long-term value.

The company has maintained a stable ~90-day working capital cycle despite being in a capital-intensive sector, reflecting prudent financial management. With strong profitability, operational resilience, and a focused B2B model, SGIL stands out as a scalable and fundamentally sound growth opportunity. The company is valued at a P/E multiple of 19x for FY25, based on the upper price band. We recommend SUBSCRIBE rating to the issue for the long term.