Nityas Gems & Jewellery IPO — My View

 Nityas Gems & Jewellery IPO — My View

Nityas Gems is into gold jewellery with lab-grown diamonds, with both B2B and D2C business.

What I like 

• Revenue grew from ₹54 Cr to ₹203 Cr

• PAT increased from ₹4 Cr to ₹22 Cr

• Margins have improved

• Integrated manufacturing + jewellery business

• Lab-grown diamonds could be a good long-term opportunity

• IPO money is mainly for working capital, not OFS

But the risks matter 

1. Cash Flow:

FY26 profit was ~₹22 Cr, but operating cash flow was negative ₹14.7 Cr.

2. Working Capital:

Money is getting stuck in inventory and receivables. Working-capital days have increased significantly.

3. Supplier Concentration:

Top 10 suppliers contribute around 86% of purchases.

4. Lab-Grown Diamond Risk:

Prices can fall quickly, which can impact inventory value and margins.

5. Governance/Controls:

RHP mentions an internal theft/misappropriation incident at a subsidiary. No promoter involvement is indicated, but internal controls need to be watched.

Valuation

At ₹75, valuation looks reasonable, but not cheap — around 19x FY26 earnings.

My View: 

I like the growth story, but my biggest question is: “Profit toh ban raha hai, lekin cash kab aayega?”

If cash flow and working capital improve, this story becomes much more attractive.

Good growth + reasonable valuation + higher cash-flow risk = WATCH.

This is my personal analysis based on the RHP, not investment advice.