Nityas Gems & Jewellery IPO — My View

Nityas Gems & Jewellery IPO — My ViewNityas 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 OFSBut 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.ValuationAt ₹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.