Shankesh Jewelers IPO: Bargain or Risk?

Shankesh Jewelers is entering the market with an asset-light jewelry wholesale model and a relatively modest valuation. Strong growth and returns look attractive, but supplier concentration and working-capital risks deserve attention

A Rs. 367-Crore IPO

The IPO is scheduled for August 18–20, 2026, with a price band of Rs. 88–Rs. 93 per share. The minimum investment is Rs. 14,880 for 160 shares. About 74.7% of the issue is fresh shares, with the rest being an offer for sale.

The Business Model

Shankesh buys gold, designs jewellery and works with independent artisans to produce finished pieces. It then sells them to jewellery retailers and large chains. This model avoids the cost of maintaining large manufacturing facilities.

Growth Looks Strong

Operating revenue increased from Rs. 1,061.78 crore in FY24 to Rs. 1,630.79 crore in FY26. Net profit also climbed from Rs. 12.82 crore to Rs. 106.68 crore. EBITDA margin expanded to 9.68% in FY26.

The Valuation Appeal

At Rs. 93 per share, Shankesh's post-issue P/E is around 12.82 times. That is below the stated industry average of 22.45 times. Its FY26 ROE was also a strong 50.94%.

One Supplier Matters a Lot

The company's supplier concentration is a key concern. Its top five bullion suppliers accounted for 88.43% of raw-material purchases in FY26, while the largest supplier alone contributed 55.30%.

Cash Could Become the Catch

Shankesh needs significant capital to purchase gold upfront while waiting for customers to pay. Inventory rose to Rs. 239.96 crore and receivables reached Rs. 126.42 crore in FY26. Product returns also reached Rs. 117.76 crore, or 7.22% of revenue.

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