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Key Highlights

* Company background: Incorporated in 2019, Advit Jewels Limited is a Jaipurbased manufacturer and wholesaler of premium handcrafted jewellery operating under the heritage brand Rambhajo. The company specializes in Kundan, Polki, Diamond and studded jewellery catering primarily to jewellery retailers across India. With over a century of legacy in jewellery craftsmanship, the company combines traditional artisanal techniques with contemporary designs. Its diversified product portfolio includes necklaces, earrings, rings, bangles and customized jewellery. The company primarily works on a B2B model, supplying dealers, showrooms and retailers, but also serve B2C customers for exclusive, made-toorder jewellery.

* Market opportunity: India’s gems and jewellery industry is supported by rising disposable incomes, increasing urbanization, strong wedding-related demand and a growing preference for branded jewellery. The premium bridal jewellery segment, particularly Kundan and Polki jewellery, continues to witness healthy demand due to its cultural significance. Increasing consumer inclination toward customized and designer jewellery provides additional growth opportunities. Advit Jewels is well positioned to benefit from these trends through its established brand heritage, strong design capabilities and expanding customer network. The organized jewellery market is also expected to gain market share from unorganized players over time.

* Key strengths: Advit Jewels benefits from its century-old “Rambhajo Since 1921” brand, which provides strong credibility in the jewellery market. The company possesses deep expertise in handcrafted Kundan and Polki jewellery, a niche segment with high entry barriers due to skilled craftsmanship requirements. Its ability to offer customized jewellery designs strengthens customer relationships and repeat business. The company has significantly expanded both its product portfolio and customer base over recent years. Strong retailer relationships, experienced promoters, design capabilities and an established sourcing network further support its competitive positioning and future growth prospects.

* Key strategies: The company aims to strengthen its market presence by expanding its product portfolio and increasing penetration across existing and new geographies. It plans to enter the retail segment through company-owned stores and franchise-based expansion to enhance brand visibility and customer engagement. Continued focus on design innovation, customized offerings and strengthening relationships with jewellery retailers remain key growth drivers. Efficient inventory management and working capital optimization are expected to support profitability and operational scalability.

* Financials: Advit Jewels has delivered strong financial performance over the last three years. Revenue from operations increased from Rs 46.6 crore in FY23 to Rs 124.9 crore in FY25, reflecting a CAGR of approximately 63.7%. PAT grew from Rs 10.4 crore in FY23 to Rs 25.4 crore in FY25, demonstrating strong earnings growth and margin expansion. For the nine months ended December 2025, the company reported revenue of Rs 123.8 crore and PAT of Rs 25.4 crore, indicating continued business momentum.

* Valuation: At the upper price band, Advit Jewels is valued at a post-issue P/E of 24.9x and a P/B ratio of 7.6x based on FY25 financials. While the valuation is relatively higher compared to some listed peers, the company has demonstrated strong execution with revenue and profit growing at a robust pace over the last three years. Its established heritage brand, niche positioning in the premium Kundan and Polki jewellery segment, expanding customer base, and consistent improvement in profitability support the premium valuation. Considering the strong growth trajectory and long-term business prospects, we maintain a Subscribe for Long Term view on the issue.

* Key risks: The company’s business is highly dependent on gold, precious stones and diamond prices, making profitability vulnerable to commodity price fluctuations. Supplier concentration remains relatively high, exposing the business to procurement-related risks. Demand for premium jewellery is influenced by consumer spending patterns and economic conditions, which could affect growth during periods of slowdown. Additionally, maintaining skilled artisans and preserving product quality are critical for sustaining the company’s competitive advantage in the handcrafted jewellery segment. Another area to monitor is the sharp increase in inventory levels, with inventory days rising from 91 days in FY23 to 199 days in FY25, indicating higher working capital intensity and potential inventory management risks if demand growth moderates

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