Unlisted Shares

Prominent brand - Boasting a 25-year legacy, 'Motisons' is a renowned brand offering 300,000+ jewelry designs diverse antique, pearl, kundan, and diamond jewelry collections.

Revenue Growth - For FY23, the company's remarkable 16% revenue growth (Rs.51 Cr increase) and for the past five years it has shown a growth of 49%

Asset Growth - The company's assets grew modestly, driven by a Rs.37 cr increase in inventory (13% rise y-o-y), and a slight rise in electrical equipment like computers and Printers values by Rs. 0.02 cr.

Ratio Analysis - The elevated current ratio of 1.8 due to a rise in inventory (13% rise y-o-y), faces hurdles with extended inventory turnover of 346 -469 days vs. the industry norm (112 days), and a high D/E ratio of 1.3 indicating substantial debt for gemstone and precious metal inventory.

Investment Thesis -In FY23, the company achieved a 17% increase in revenue, supported by both domestic and export sales, leading to enhanced financial ratios. However, there are notable concerns regarding high inventory turnover days ranging from 346 to 469 days, which could indicate potential liquidity issues. Investors should carefully evaluate the company's heavy reliance on inventory before making investment decisions.

Moreover, the company appears to be overvalued compared to its industry peers, as indicated by its high P/E ratio of 47.8x, exceeding the industry average of 27.8x. After conducting calculations, the intrinsic value of the company is determined to be Rs. 85.8.