AJC Jewel Manufacturers Ltd IPO opens June 23–26, 2025, issuing 16.2 lakh shares at ₹90–95 each to raise up to ₹15.39 cr. Proceeds will fund ₹2.63 cr in new equipment, repay ₹8.9 cr of debt, and support general corporate needs. The Kerala-based gold jewelry maker (22K/18K, plain, studded, customized) reported FY24 revenue ₹246 cr and PAT ₹3.3 cr. IPO has ~₹9 GMP, listing on BSE SME expected July 1.
Overview & Work
Business Profile (Finowings & Mint):
- Incorporated in 2018, AJC Jewel manufactures a diverse range of 22K and 18K gold jewelry—bracelets, bangles, rings, pendants, chains, earrings, anklets—serving dealers, showrooms, corporates, and small shops, from a 21,780 sq.ft. leased facility in Malappuram, Kerala, outfitted with 3D printers, casting, and polishing equipment.
- Products include plain, studded, rose gold, customized/named jewelry, catering equally to men, women, and children.
Strengths
- Diverse & Innovative Product Range
Offers varied designs (plain, studded, rose, customized) to multiple consumer segments and consistently updates product line.
- Modern In-house Manufacturing
Owns state-of-the-art facility with advanced equipment, ensuring quality control and operational efficiency.
- Experienced Leadership & Skilled Team
Promoter-led management with years of industry experience; workforce of 67 supporting operations, design, and sales.
- Established Distribution Network
Strong B2B presence via dealers, retail showrooms, corporates, and small shops.
Risks & Weaknesses
- Raw Material & Price Volatility
Heavy reliance on a few suppliers & absence of long-term contracts; fluctuating gold prices may erode margins.
- Geographic Concentration
All operations are centered in Kerala; any local disruptions could significantly hit performance.
- Customer Concentration & No Long-term Contracts
Over 54% of revenue from top 5 clients; lack of formal agreements exposes the business to order cancellations or delays.
- Regulatory & Compliance Gaps
Historical delays in GST, EPF, TDS filings; penalties are possible for non-compliance.
- Competitive Pressure & Cash Flow Issues
Faces stiff competition from larger jewelry brands; past negative operating cash flows could strain future finances
AJC Jewel shows promise with its modern facility, diverse design offerings, strong leadership, and an enticing IPO valuation. However, risks from material procurement, regulatory lapses, concentrated revenue, and competition need close monitoring. Healthy GMP suggests investor optimism, but subdued subscription and SME-specific liquidity challenges mean prudent consideration is advised.
Here is a brief financial performance analysis across FY2022 to FY2024:
Financial Performance Summary
| Particulars | FY2022 | FY2023 | FY2024 |
| Revenue (₹ Cr) | 127.39 | 194.18 | 245.89 |
| Profit (₹ Cr) | 1.26 | 2.04 | 3.32 |
| Total Assets (₹ Cr) | 16.42 | 36.00 | 36.73 |
Revenue Analysis
- FY2022: ₹127.39 Cr
- FY2023: ₹194.18 Cr (↑ 52.5% YoY)
- FY2024: ₹245.89 Cr (↑ 26.6% YoY)
Analysis: Steady revenue growth shows strong demand and market presence, particularly a major jump in FY2023 possibly due to expanded B2B distribution or product diversification.
Profit Analysis
- FY2022: ₹1.26 Cr
- FY2023: ₹2.04 Cr (↑ 61.9% YoY)
- FY2024: ₹3.32 Cr (↑ 62.7% YoY)
Analysis: Profit more than doubled in two years, indicating improved cost control and operating efficiency despite working in a low-margin industry.
Asset Analysis
- FY2022: ₹16.42 Cr
- FY2023: ₹36.00 Cr (↑ 119%)
- FY2024: ₹36.73 Cr (↑ 2%)
Analysis: Major jump in FY2023 due to likely capital infusion or debt-financed expansion. The stable asset base in FY2024 reflects limited further expansion before IPO.
Summary
AJC Jewel Ltd has shown consistent revenue and profit growth over the past three years, with significant expansion in FY2023. While FY2024 saw modest asset growth, profitability continued improving, suggesting better operational leverage. These trends indicate solid fundamentals, though future growth will depend on how well it scales post-IPO.
