ET Intelligence Group: At a time once many jewellers ar finding their names on the FTO (non-performing assets) lists of banks, Mumbai-based Renaissance JewelleryBSE -0.31 it’s got been reporting growth without any longterm debt. that produces it the second listed debt-free jewelry company once TitanBSE zero.27 %. It jointly has cash balance value twenty sixth of its capitalisation.
The company exhibits financial discipline, price and risk controls, perpetually rising product combine and concentrate on operational margin. This has helped Renaissance grow its sales by nearly 400th within the last three years to Rs one,320 large integer and over treble its profit to Rs forty eight crore.
The company exhibits financial discipline, value and risk controls, perpetually rising product combine and concentrate on operational margin. This has helped Renaissance grow its sales by nearly four-hundredth among the last three years to Rs one,320 crore and over treble its profit to Rs forty eight large integer.
Renaissance is into coming up with, producing and promoting of jewellery products overseas and in Bharat. among the overseas business, it sells to several foreign jewellery brands appreciate stamp, Sears, retailers appreciate Amazon and JC Penny. It jointly includes a licensing tie-up with Hallmark. This reduces the possibility of dependence on a few of shoppers.
Over the years, the corporate has step by step shifted from gold to silver — from seventieth in 2010, gold currently accounts for unit of time. Through its innovation and springing up with team of over 200 people, the company has managed to remain durable negotiation power with shoppers.
Most of its sales is generated among the half of the business due to Christmas and Saint Valentine’s Day. Over the last a pair of years, the company has raised exposure to the Middle-East and Bharat to forty second among the half of FY16 from twelve months among the 1/2 FY14. the company uses hedging to manage the possibility of unsteady costs of precious metals. So far, it’s avoided aggressive growth.
Its operational margin before depreciation (EBITDA margin) improved to 6.3% from 4.9% in FY13. The management intends to expand it to 7%-7.5% over following a pair of years. It expects 13%-17% earnings growth for following a pair of years. In FY16, earnings grew by 100 and ninetieth over the previous business.
The stock has given a return of 1 hundred among the last one year. It trades at a trailing P/E multiple of five and fewer than fourfold cash earnings. it is a unvaried dividend remunerator with promoters holding seventy fifth stake.