Radhika jeweltech
Radhika Jewellers is into trading of Gold & Diamond Jewellery and ornaments. With over three decades of expertise, the legacy began in 1987 when Mr. Ashok Zinzuwadia and his father, Mr. Mathurbhai Zinzuwadia.
Starting from a modest 200 sq. ft. store with seven employees and approximately 15 kg of gold jewellery. Radhika Jewellers became a Public Limited company with effect from 22nd July 2016.
Company’s Value: Mr. Ashok and Mr. Haresh believed that when you have something exceptional along with top-notch quality and humble after-sales service, customers are enticed to come to you.
Chairman’s Vision: Mr Ashok Zinzuwadia, his aim is to be one of the best retail jewellery brands and to build a strong organisation with competent management system. He has 35 years of experience of the jewellery industry.
New generation: Mr Darshit, is the eldest son of Mr Ashok joined the family business in year 2014. A commerce graduate and a diploma holder in Graduate Diamonds Program from the Gemological Institute of America (GIA).
Product Portfolio:
Gold: Ring, Earrings, Necklace, Gold Bangles, Pendant Sets, Bracelets
Diamond: Ring, Earrings, Necklace, Gold Bangles, Pendant Sets, Bracelets
Platinum Jewellery, Polka
Services:
Valet Parking
Baby Care Room
Bridal Lounge
Jewellery Repair Services Include Stone Setting And Remounting
Jewellery Valuation
Free Home Delivery
Laser Soldering
Business Operation:
Currently the company operates in Rajkot with one store covering a retail space of 2,500 sq. ft. and a new store with 10,000 sq ft of retail space. Employee count, 110. The retail outlets stock a wide range of jewellery designs for both men and women.
Financials
Marketcap: 756 cr
PE: 17.4
ROCE: 17.9%
ROE: 14.8%
Debt to equity: 0.21, little debt
Revenue growth, 3 years: 22%
Profit growth, 3 years: 42%
Cash: 9 cr, currently cash is all time low due to major expansion plans the company is undertaking.
Fixed asset has jumped from 2 cr to 14 cr in a year.
Revenue Breakup:
In FY21, the company generated revenue majorly from Pure Gold and Gold Jewelry ~98% while the rest ~2% was from the sale of Loose Diamond and Diamond Jewelry and Platinum Jewelry.
Positive:
- Bridal Jewellery their specialty
- Management very active on expansion.
- Highly motivated management.
- 1st phase: new store expansion to cover Saura Rashtra region within next 1 year.
2nd phase: new stores within Gujarat
3rd phase : new store within India
Plan to open total of 4-5 stores. Most probably all expansion plan to be funded from cash flow. - Entering into E-commerce platform.
Negative:
- New generation management ability still to be tested.
- Delay in execution plans.
- Macro effects, slowdown in consumption, Inflation.
- Gold price fluctuation.
- Company brand unknown outside rajkot.
- Strong competition from other players.