Shringar House of Mangalsutra Limited IPO – Strong Market Position, Global Reach, and Consistent Growth: Should You Apply?

About the Issue:  

Shringar House of Mangalsutra Ltd is preparing to launch its Initial Public Offering (IPO) for equity shares. See the issue details below.

Objects of the Issue  

The objective of the Shringar House of Mangalsutra IPO is to utilize the net proceeds for funding the company’s working capital requirements and for general corporate purposes. This will support smooth business operations, strengthen financial flexibility, and provide resources for future growth and expansion opportunities.

Promoter holding 

The promoters of Shringar House of Mangalsutra, including Chetan N Thadeshwar, Mamta C Thadeshwar, Viraj C Thadeshwar, and Balraj C Thadeshwar, hold 99.99 per cent of the company’s shares before the IPO. Post issue, their holding will reduce, allowing broader public participation and improved shareholding distribution.

Company Profile  

Shringar House of Mangalsutra Limited is a leading designer and manufacturer of Mangalsutras in India. Incorporated in 2009 as a private limited company, it transitioned into a public limited entity in 2024. Operating primarily in the B2B segment, the company designs, manufactures, and markets a wide range of Mangalsutras crafted in 18k and 22k gold, adorned with American diamonds, cubic zirconia, pearls, and semi-precious stones.

The promoters are Chetan N Thadeshwar, Mamta C Thadeshwar, Viraj C Thadeshwar, and Balraj C Thadeshwar, with Chetan N Thadeshwar bringing over four decades of industry expertise. In CY23, the company commanded around 6 per cent share of India’s organized Mangalsutra market.

Company has a robust client base across 24 states, four union territories, and international markets including the UK, New Zealand, UAE, USA, and Fiji, the company continues to strengthen its leadership in the Mangalsutra segment.

Financials 

The company’s financials show consistent growth across three years. Total income rose from Rs 951.29 crore in FY23 to Rs 1,430.12 crore in FY25, reflecting strong revenue momentum. Profit after tax nearly tripled from Rs 23.36 crore to Rs 61.11 crore, supported by EBITDA expansion from Rs 38.89 crore to Rs 92.61 crore. Net worth improved significantly to Rs 200.85 crore, indicating stronger shareholder value. Assets increased to Rs 375.75 crore, showcasing balance sheet expansion. Borrowings also rose moderately, from Rs 93.19 crore to Rs 123.11 crore, but remain manageable relative to growing equity. Overall, the company demonstrates healthy growth, improving profitability, and a stronger financial position.

Valuation & Returns 

Shringar House of Mangalsutra Limited commands a P/E of 26.04, indicating a premium valuation compared to RBZ Jewellers (13.37) and Utssav CZ (16.85), though slightly below Sky Gold’s 28.73. Despite lower EPS of Rs 8.57 versus peers like Utssav CZ at Rs 11.63, Shringar’s strong RoNW of 36.2 per cent  highlights superior efficiency in generating shareholder returns. Its NAV per share of Rs 27.84 is lower than peers, suggesting limited asset backing but higher profitability. Overall, the company trades at a fair premium, justified by strong return ratios.

Outlook

Shringar House of Mangalsutra Limited has laid out a robust outlook centred on market expansion, operational efficiency, and financial strengthening. With a 6 per cent share in the organised Mangalsutra market, the company is well-positioned in a segment projected to grow steadily from Rs 178 billion in CY23 to Rs 303 billion by CY32, supported by cultural significance, rising disposable incomes, and demand for customised designs. The broader jewellery industry is also expected to benefit from festive demand and easing macroeconomic pressures, creating favourable conditions for growth.

Strategically, the company is expanding its supply chain across India by partnering with third-party facilitators, targeting 42 cities to capture untapped demand. International expansion through B2B trade fairs and exhibitions is expected to enhance its global footprint, leveraging its integrated manufacturing facility. Strengthening relationships with corporate clients, who are themselves expanding retail networks, will help secure recurring orders and higher volumes. The company also plans aggressive brand-building initiatives, including exhibitions and potential celebrity endorsements, to enhance visibility.

To support its growth, Shringar House intends to augment fund-based capacities to address its working capital needs, critical in its capital-intensive business model. Alongside, operational efficiency measures such as cost optimisation, backward integration, and higher capacity utilisation are expected to drive profitability. Overall, the company’s proactive strategies, coupled with favourable industry dynamics, place it on a strong growth trajectory, albeit with external risks such as regulatory changes and competition.

Based on the issue details, we recommend subscribing to this IPO, though investors should be mindful of its high valuation.