Can Lalithaa Jewellery Mart IPO deliver long-term growth for high-risk investors?
Lalithaa Jewellery Mart is gearing up for a remarkable ₹1,700 crore IPO aimed at financing its capital expenditure and ambitious expansion plans. The company has demonstrated impressive performance, with significant revenue growth and a notable surge in net profit from FY24 to FY26. Boasting higher revenues per store and per square foot than its competitors, its valuation remains attractive…
Lalithaa Jewellery Mart, a jewellery retailer incorporated in 1985, is set to raise ₹1,200 crore through a fresh issuance and an additional ₹500 crore via an offer for sale. This IPO will reduce the promoter group's stake from 97.7% to 82.9%. The company primarily operates in the southern parts of India, with its revenue concentrated in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, and Puducherry.
With 61 stores across 51 cities, Lalithaa has seen significant growth, with revenue from operations increasing by 22.1% annually from ₹25,023.9 crore in FY24 to ₹25,023.9 crore in FY26. Net profit also rose 67.5% annually, reaching ₹1,009.8 crore between FY24 and FY26. Operating margin before depreciation and amortization (EBITDA margin) improved to 6.7% in FY26 from 4.1% in FY24, surpassing the peer group's range of 5.7-20%.
Revenue per store grew to ₹410.2 crore in FY26 from ₹316.8 crore in FY24, while revenue per square foot increased to ₹3.8 lakh in FY26 from ₹2.9 lakh in FY24, positioning Lalithaa near the upper range of its peers. Despite a valuation with a price-earnings (P/E) multiple of up to 11, which is at the lower end of the peer range of 9-46, high-risk investors may consider the IPO due to its strong financial performance and revenue per store and per square foot.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
