One of the small cap Jewellery Stock based in Madhya Pradesh, engaged in the business of manufacturing, selling, and trading Jewellery and other precious metals has generated multibagger returns in just 5 years. The stock has delivered returns of 2,494 percent to its shareholders in the past 5 years, and a return of 125 percent in the last 1 year.
Stock Performance
The shares of DP Abhushan Ltd, with a market capitalization of Rs 3,710 Crores, closed at Rs 1,628 per share, around 1 percent down from its previous close of Rs 1,644 apiece.
On February 10, 2020, the shares of DP Abhushan Ltd traded at Rs. 62.75, exhibiting a gain of around 2,494 percent compared to the current price of 1,628. For example, if someone had invested Rs. 1 lakh into the company’s stock 5 years ago, it would have been turned to Rs. 25.94 lakhs now.
Company Overview
D. P. Abhushan is engaged in the retail business of various jewelleries and ornaments made out of gold, diamonds and platinum studded with precious and semiprecious stones. The Company’s portfolio includes rings, earrings, armlets, pendants, gajrahs, nose rings, bracelets, chains, necklaces, bangles and other wedding jewellery. It has built a family of over 25 lakhs satisfied customers over a period of time. (From Portal)
The Company has ten showrooms under the ‘D.P. Jewellers’ brand which is based mainly in the states of Madhya Pradesh and Rajasthan. It has launched 2 new showrooms, One in Ajmer, Rajasthan and another in Neemuch, Madhya Pradesh during FY25. And construction is ongoing for another showroom in Ratlam, Madhya Pradesh.
Expansion & Growth Plans
The company aims to become a Market Leader in Gems & Jewellery Sector in Tier 2 & Tier 3 Cities of Central India and has plans to expand their presence in Madhya Pradesh, Rajasthan, Chhattisgarh and Gujarat.
The company is also planning to raise up to Rs 600 Crores through the QIP route which will support their store expansion and provide growth capital. It is targeting an increase in the revenue share from diamond-studded jewellery from 6 percent to 15 percent.
Industry Overview
The Indian jewelry market is the second largest globally, valued at USD 80–85 billion in FY24 and expected to reach USD 93.56 billion in FY25, accounting for 25.3% of the global market share. By FY28, it is projected to grow to USD 140–155 billion. Gold prices saw a significant rise due to customs duty cuts, geopolitical tensions, and uncertainty around US interest rates, with a 28%-35% surge. Demand for 18-carat gold jewelry rose by 25% YoY in 2024, driven by younger consumers favoring rose gold and studded white gold over traditional 22-carat options.
Budget 2025
The Finance Minister has lowered the customs duty on jewelry and its components, making jewelry more affordable for consumers in India and boosting domestic demand. The previous 25% customs tariff on jewelry has been reduced to 20%, effective from February 2, 2025. Additionally, the tariff on Platinum Findings has been slashed from 25% to 5%.
Financials
The company reported an increase of 42 percent YoY in Revenue from Operations from Rs 766 Crores in Q3FY24 to Rs 1,085 Crores in Q3FY25. On a quarterly basis, it increased slightly by 8 percent from Rs 1,005 in Q2FY25.
Their Net Profits grew by 123 percent YoY from Rs 16.71 Crores in Q3FY24 to Rs 37.33 Crores in Q3FY25. On a quarterly basis, profits rose by 48.6 percent from Rs 25.12 Crores in Q2FY25.
The company’s EBITDA increased 92 percent YoY from Rs 29 Crores in Q3FY24 to Rs 56 Crores in Q3FY25. Their EPS grew by 121 percent YoY from Rs 8 to Rs 17 over the same period.
Written By Adhvaitha Nayani
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