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PC Jeweller Ltd

Initiating Coverage

Enhancing investment decisions

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Explanation of CRISIL Fundamental and Valuation (CFV) matrix


The CFV Matrix (CRISIL Fundamental and Valuation Matrix) addresses the two important analysis of an investment making process Analysis of Fundamentals (addressed through Fundamental Grade) and Analysis of Returns (Valuation Grade) The fundamental grade is assigned on a five-point scale from grade 5 (indicating Excellent fundamentals) to grade 1 (Poor fundamentals) The valuation grade is assigned on a fivepoint scale from grade 5 (indicating strong upside from the current market price (CMP)) to grade 1 (strong downside from the CMP).

CRISIL Fundamental Grade


5/5 4/5 3/5 2/5 1/5

Assessment
Excellent fundamentals Superior fundamentals Good fundamentals Moderate fundamentals Poor fundamentals

CRISIL Valuation Grade


5/5 4/5 3/5 2/5 1/5

Assessment
Strong upside (>25% from CMP) Upside (10-25% from CMP) Align (+-10% from CMP) Downside (negative 10-25% from CMP) Strong downside (<-25% from CMP)

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Analyst Disclosure
Each member of the team involved in the preparation of the grading report, hereby affirms that there exists no conflict of interest that can bias the grading recommendation of the company.

Disclaimer:
This Company commissioned CRISIL IER report is based on data publicly available or from sources considered reliable. CRISIL Ltd. (CRISIL) does not represent that it is accurate or complete and hence, it should not be relied upon as such. The data / report is subject to change without any prior notice. Opinions expressed herein are our current opinions as on the date of this report. Nothing in this report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The subscriber / user assume the entire risk of any use made of this data / report. CRISIL especially states that, it has no financial liability whatsoever, to the subscribers / users of this report. This report is for the personal information only of the authorised recipient in India only. This report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person especially outside India or published or copied in whole or in part, for any purpose.

PC Jeweller Ltd `
Spreading the sheen
Fundamental Grade Valuation Grade Industry 3/5 (Good fundamentals) 5/5 (CMP has strong upside) Speciality retail

September 18, 2013 Fair Value CMP CFV MATRIX


Excellent Fundamentals

150 87

Fundamental Grade

Jewellery retailer PC Jeweller Ltd (PCJ) has entrenched itself firmly in North India based on a strong brand recall and successful branch expansion (from one to 36 showrooms in the past seven years). Increasing market share of organised players along with companys focus on diamond jewellery augurs well for the company. However, intensifying competition, weakening consumer sentiment and stringent regulations on gold imports are key risks. We initiate coverage on PCJ with a fundamental grade of 3/5. Strong foothold in NCR; retail expansion at a fast pace National Capital Region (NCR) dominates its domestic sales with 60%+ contribution. Aggressive expansion (2.5x increases in retail space) over FY10-13 to 166k sq ft and further expansion lined over the next two years is expected to lower PCJs dependence on NCR. Focus on high-margin diamond jewellery In a bid to better its margins, PCJ has been increasing its focus on high-margin diamond jewellery. Its share increased from 18% of FY10 domestic sales to 31% in FY13, improving EBITDA margin from 10% to 12.5% during the same period. Going ahead, we expect PCJs diamond jewellery to hover around 30-32% of domestic sales. Gold jewellery demand to be steady, organised players to gain market share Domestic gold jewellery market grew 24% y-o-y to 2,125 bn, mainly led by a 17% rise in gold price during FY13; the jewellery industry grew by 15% during the same period owing to strong demand for jewellery during festivals/weddings. For FY14, we expect demand for jewellery to increase with marginal decline in gold prices (2-3% y-o-y). Further, shift in consumer preference towards branded jewellery is expected to increase the share of organised players from the current ~18%. Ability to withstand competition; regulatory concerns - key monitorable PCJ plans to add 20 more showrooms (100k sq ft more) in FY14 and ~12 more showrooms in FY15 across India; it is looking at new markets in southern and western India. With aggressive expansion plans of many regional and national players, along with weak consumer demand, competition is expected to intensify. Given the lower pick-up in stores outside NCR, PCJs ability to successfully penetrate these regions and establish a brand is a key monitorable. Also, changes in the Reserve Bank of Indias (RBIs) regulations to curb gold imports may lead to difficulty in getting a metal loan; this is a monitorable too. Expect two-year revenue CAGR of 18.7%; EBITDA margins to decline We expect revenues to register a two-year CAGR of 18.7% to 56 bn in FY15 driven by new store openings and consumers demand for jewellery. We expect EBITDA margin to decline marginally to 10.5% in FY15 owing low profitability of new stores. Valuations: Current market price has strong upside We have used the price-to-earnings ratio (P/E) method to value PCJ. We assign a P/E multiple of 8x to FY15 EPS of 18.8 and arrive at a fair value of 150 per share. At the current market price of 87, our valuation grade is 5/5.

5 4 3 2 1

Poor Fundamentals

Valuation Grade
Strong Downside Strong Upside

KEY STOCK STATISTICS


NIFTY/SENSEX NSE/BSE ticker Face value ( per share) Shares outstanding (mn) Market cap ( mn)/(US$ mn) Enterprise value ( mn)/(US$ mn) 52-week range ()/(H/L) Beta Free float (%) Avg daily volumes (30-days) Avg daily value (30-days) ( mn) 5850/19804 PCJEWELLER 10 179 15,740/249 14,405/228 195/66 0.9 30.0% 466,852 41.3

SHAREHOLDING PATTERN
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Dec-12 Pro moter 13-Mar FII DII 13-Jun Others 70.02% 70.02% 70.02% 14.8% 3.95% 11.3% 13.0% 3.58% 13.4% 13.7% 3.46% 12.9%

KEY FORECAST
( mn) FY11 FY12 Operating income 19,772 30,419 EBITDA 1,965 3,314 Adj net income 1,453 2,334 Adj EPS ( ) 32.6 17.4 EPS growth (%) 96.5 (46.5) Dividend yield (%) RoCE (%) 53.3 40.8 RoE (%) 57.8 53.3 PE (x) P/BV (x) EV/EBITDA (x) 0.6 1.5 NM: Not meaningful; CMP: Current market price Source: Company, CRISIL Research estimates FY13 40,184 4,825 2,937 16.4 (5.9) 0.9 34.4 30.3 7.0 1.5 3.2 FY14E 49,403 5,319 3,305 18.5 12.5 4.3 29.6 21.5 3.8 0.7 1.3 FY15E 56,628 5,918 3,368 18.8 1.9 4.3 29.0 18.2 3.7 0.6 0.9

PERFORMANCE VIS--VIS MARKET


Returns 1-m PCJ NIFTY -30% 3% 3-m -31% 5% 6-m -57% -1% 12-m NA 15%

ANALYTICAL CONTACT
Mohit Modi (Director) Pooja Bandekar Vishal Rampuria Client servicing desk +91 22 3342 3561 clientservicing@crisil.com mohit.modi@crisil.com pooja.bandekar@crisil.com vishal.rampuria@crisil.com

For detailed initiating coverage report please visit: www.ier.co.in CRISIL Independent Equity Research reports are also available on Bloomberg (CRI <go>) and Thomson Reuters.

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Table 1: PCJ - Business environment


Product/segment Product / service offering Geographic presence Industry characteristics Gold and diamond jewellery Manufacturing, exporting and retailing of gold and diamond-studded jewellery in India Northern and Central India Market position Sales growth (FY10-FY13 3-yr CAGR) Sales forecast (FY12-FY15E 3-yr CAGR) Demand drivers Few large players in an industry dominated by unorganised players Established players have strong client loyalty Preference for traditional designs and gold ornaments, especially in rural and semi-urban areas

Dominant player in North India 59% 22.7% Sustained demand for gold jewellery in India, especially for weddings Shift in consumers preference for organised jewellery players (players with multiple stores) from the unorganised ones (single store players) due to better designs and quality assurance through hallmarking Opening of 20 new showrooms pan-India in FY14 and 12 more by FY15

Sales drivers Key competitors Key risks

Joyalukkas Jewellery, Tara Jewels, Titan Industries, Thangamayil , Tribhovandas Bhimji Zaveri (TBZ) High geographical concentration Regulatory concerns Aggressive expansion by organised players

Source: Company, CRISIL Research

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Grading Rationale
A dominant player in NCR with strong brand recall
PCJ, promoted by brothers Padam Chand Gupta and Balram Garg, has emerged as one of the leading retail jewellery players in Delhi. It has gradually expanded from one (flagship) showroom in Karol Bagh, Delhi in 2005 to 36 stores as of Q1FY14 across North and Central India. A strong in-house design team and five manufacturing facilities support its retail expansion. With promoters two-decade-plus experience in the jewellery industry, PCJ has been able to create a strong brand recall in the NCR.

Strong foothold in NCR, which includes Delhi and 19 districts in Haryana, Uttar Pradesh and Rajasthan

Better growth than peers


Over the past five years, PCJ has grown at a CAGR of 59%; the growth pace is faster than that of the other organised players. Revenues from stores in NCR constituted over 60% of total domestic sales over the past three years (FY11-13), highlighting the dominance of NCR in PCJs geographic spread. In FY13, 13 showrooms in NCR contributed 65% of total domestic sales; showrooms located in Delhis Karol Bagh and South Extension accounted for 14% and 11%, respectively, of the total domestic sales in FY13. Over FY11-13, PCJ has grown at a CAGR of 42%; and with aggressive retail expansion plans, we expect PCJ to record moderate revenue growth. Figure 1: Clocked faster growth than peers (FY09-13 revenue CAGR)
70% 60% 50% 40% 30% 20% 27% 10% 0% Titan Gitanjali PCJ TBZ Thangamayil 59%

58%

34% 25%

Source: Company, CRISIL Research

Geographical concentration to continue; dependence on flagship store down sharply


PCJs flagship Karol Bagh store recorded stable revenue sales in FY13 but with the fastpaced expansion of retail stores across India, the contribution of the Karol Bagh store dropped to 14% in FY13 from 30% in FY11. Going forward, sales from Karol Bagh will mature with increase in sales from new stores. However, we expect sales at the Karol Bagh store to record stable growth in FY14 based on increase in demand for jewellery following a dip in gold price. Revenues from NCR stores constituted 65% of total domestic sales in FY13, highlighting the geographical concentration of PCJ. Going forward, we expect the dominance of NCR in PCJs revenue share to continue as PCJ is yet to establish its foothold in other regions.

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Table 2: Steady revenues from NCR


Area (sq ft) FY11 Stores in NCR Stores outside NCR Total Proportion for stores in NCR Source: Company, CRISIL Research 44,446 56,742 101,188 44% FY12 55,946 81,991 137,937 40.6% FY13 81,379 83,193 164,572 49.4% Revenues ( mn) FY11 6,960 3,150 10,100 69% FY12 12,440 7,780 20,220 61.5% FY13 19352 10524 29877 65%

Based in India - the largest consumer of gold


PCJ stands to gain by virtue of being based in a country where gold is still considered the most valued asset. The $40 bn Indian jewellery industry dominated by the unorganised sector (85% of the market) is the largest globally and is growing at 15% p.a. India is the largest consumer of gold; jewellery constitutes bulk of gold consumption. Jewellery consumption in India is quintessentially driven by the underlying status associated with gold, especially for weddings. Gold is also considered a safe haven for savings, mostly in rural areas owing to the lack of any major alternative investment options supported by its anti-inflationary characteristics. Rural and non-urban markets, 70% of total gold consumption, have reported increasing appetite for gold jewellery.

India consumed 920 tonnes of gold in FY13

Figure 2: Indias jewellery demand (volume-wise)


(Tonnes) 800 700 600 500 400 300 200 100 0 CY08 CY09 Volumes in tonnes CY10 CY11 CY12 % change (RHS) -15% -6% -17% -11% 40% 20% 69% 80% 60%

Figure 3: Indias jewellery demand (value-wise)


(US$ mn) 35,000 30,000 25,000 20,000 15,000 0% -20% 10,000 5,000 13,856 -40% 0 CY08 CY09 CY10 CY11 CY12 Values in US$mn % change (RHS) 14,081 29,487 30,638 29,663 13% 2% 4% 109% 120% 100% 80% 60% 40% -3% 20% 0% -20% -40%

470

442

746

618

552

Source: World Gold Council

Source: World Gold Council

Consumption to increase
Q1FY14 witnessed increase in gold jewellery sales volume aided by lower gold prices which fell by 12% in April 2013 but subsequently has rebounded; current gold price being 30,230 per 10 gms. Domestic gold prices are expected to decline further in line with a fall in international prices (see the following chart) as India almost entirely meets its gold requirement through imports. However, the decline in domestic gold prices will not be severe as the rupee continues to weaken y-o-y in 2013-14. Moreover, the increase in import duty on gold to 10% from 6% will further widen the gap between international and domestic prices. Consequently, CRISIL Research expects domestic gold prices to decline by 2-3% in 2013-14. This marginal decline in gold prices is expected to lead to higher jewellery sales volume in

Expected increase in jewellery sales aided by decline in gold prices

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FY14. Based on this, we expect PCJs revenues to grow at a CAGR of 18.7% over FY13-15. Moreover, due to the cultural underpinnings in India, there will be sustained demand for wedding jewellery. Over the long term, jewellery demand is expected to record stable growth driven by changing lifestyle, expected improvement in economic conditions and increase in demand from rural and semi-urban markets.

Figure 4: Trend in gold prices


($ per troy ounce) 1,800 1,600 1,400 1,200 1,000 800 600 2009-10 2010-11 2011-12 2012-13E 2013-14P International gold prices Domestic gold prices (RHS) 15,727 10,000 1,294 25,678 1,023 19,218 15,000 30,131 1,392 25,000 1,647 1,654 29,227 30,000 ( per 10 gms) 35,000

20,000

Source: Company, CRISIL Research

Organised segment gaining strength; PCJ has a four-pronged strategy


As mentioned, jewellery retail in the country is dominated by unorganised players (85% of the market) and the organised sector (players such as PCJ, TBZ and Titan) controls just 15%. However, the organised segment is speeding ahead, clocking a growth of 40-50% a year, while the overall market is estimated to be growing at 15% p.a. Aided by aggressive retail expansion and shifting consumer preference towards branded jewellery, contribution of organised retail to total jewellery consumed in India has grown to ~18% from less than 5% over a decade. Rise in disposable income and heightened quality awareness among consumers have benefitted the organised retail segment, which relies on quality (hallmarking scheme) to compete against the unorganised jewellers. Understanding the demand profile and the vast untapped market in tier 2 and tier 3 cities, organised players are undertaking large-scale geographical diversification, focused marketing initiatives and widening their product portfolio to cater to local taste. PCJ has devised a four-pronged strategy to gain market share: retail expansion, focus on high-ticket wedding and diamond jewellery, managing gold price volatility through metal loans and customer-oriented marketing initiatives.

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Table 3: Strong growth of organised players


Players profile Sales (FY13) Sales 3-yr CAGR No. of stores (POS) in FY13 Current sq ft (FY13) Retail model Source: Company, CRISIL Research Unit mn % No. sq ft Titan 101,233 23% 179 602,000 Franchisees, COCO,SIS Gitanjali 72,090 32% 4,000 1,700,000 Franchisees, SIS, COCO & distributors PCJ 40,184 43% 30 164,572 Own stores TBZ 16,494 18% 25 82,368 Own stores Thangamayil 15,248 52% 26 60,383 Own stores

Aggressive retail expansion


In the past three years, PCJ has opened 26 stores across 10 states in India. As of Q1FY14, it has 36 stores. PCJs expansion is based on the cluster strategy - targeting cities and towns with higher income segment in a particular region. During FY08-10, its initial focus was on NCR and it targeted popular cities to gain a strong foothold in this region. It opened nine stores in the same period: six in NCR and one each in Panchkula, Chandigarh and Dehradun. In order to further penetrate in the North, it has expanded aggressively since FY11 targeting major cities in UP, Rajasthan, Punjab and Uttarakhand. During the same period, it also made its presence felt in Central India (four stores in FY11-12). In FY13, it opened five stores in NCR and one in the North. The strategically located network of retail showrooms has helped PCJ consolidate its position in NCR and North India. The cluster strategy has helped PCJ to achieve scalability, increased brand awareness, better operating efficiency and a huge customer base. For instance, noting that the customers from the region where the company operates share similar taste for jewellery, PCJ uses this characteristic to attain scale. Also, due to its expanded network in the same regions, it has the option to move slow selling items in different stores for better inventory management and achieve economies of scale by producing similar designs. It also aided PCJ to expand at a faster pace compared to other organised players and helped it achieve breakeven within onetwo years of operations of new stores. Figure 5: PCJs expansion plan
(nos) 14 12 10 8 6 4 2 0 1 1 2 1 3 2 7 3 7 7 3 8 4 4 12 13 13

PCJ opened 26 stores in the past three years; currently has 36 stores

Figure 6: Space added more than 30,000 sq ft each year


(000' sqft) 180 160 140 120 100 80 60 40 20 0 13 13 14 13 7 27 30 65 35 36 101 138 37 33

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

NCR

North India (ex NCR)

Central India (ex NCR)

Existing showrooms

Addition of showrooms

Source: Company, CRISIL Research

Source: Company, CRISIL Research

FY13

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We believe the relatively low penetration of the organised sector, particularly in the metro, tier I and tier II cities and towns in India, provides significant growth opportunities for PCJ. The company plans to further expand its retail network across various cities in North and Central India and in certain key markets in the rest of India. PCJ plans to add 20 showrooms in FY14 and 20 more in FY15. Addition of stores will not only aid the company to garner more revenues but also increase the brand visibility and geographical presence, thereby leading to higher market share.

Plans to add 20 showrooms in FY14 and 20 more in FY15

Table 4: Retail sales analysis


FY13 Operational stores Total retail sales ( mn) Stores with annual revenues < 500 mn Stores with annual revenues btw 500-1000 mn Stores with annual revenues > 1000 mn Source: Company, CRISIL Research 30 29,876 7 15 8 FY12 24 20,395 12 8 4

Southern and western India on the expansion plan

Table 5: Typical store level economics for a mature store


Indicative workings for a store with an area of 5,000 sq ft ( mn) Target annual store sales Gold: diamond jewellery mix Gross margins-gold Gross margins-diamond Blended gross margins Store costs (% of sales) Rentals Advertisement expenses Employee costs Other expenses/overhead EBITDA margins Finance cost PBT Tax PAT Source: Company, CRISIL Research 600 70:30 10% 30% 96 (16%) 1% 1% 1% 0.80% 73.2 (12.2%) 18(3%) 55.2 (9.2%) 16.56 (30% on PBT) 38.64 (6.5%) Indicative capital employed at store level ( mn) Rental deposit Security deposit for inventory Store set-up cost@4,500 per sq ft Other Total capital employed (TCE) Inventory at store level Total inventory Store inventory Back-end inventory Target store-level return on total capital employed PAT ( mn) TCE ( mn) RoCE for the store 3 50 22.5 40 115.5

250 187.5 62.5

38.64 115.5 33%

Establishing foothold in western and southern India will be challenging


Until FY13, PCJ lacked presence in western and southern India. Although it has now expanded into western India by opening one store each in Ahmedabad (Gujarat) and Vadodara (Gujarat) as of Q1FY14, it still lacks presence in southern India. However, with many regional and national jewellery retailers as well as jewellery manufacturers and exporters lining up aggressive expansion (Table 4) plans, competition is expected to intensify. In FY12-13, the contribution of stores outside NCR to total revenues was 38% and 35% respectively. Going forward, PCJs ability to successfully penetrate these regions and establish a brand is a key monitorable.

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Table 6: Dominant regional and national players across India


No. of Players Titan Joyalukkas Kalyan Malabar Gold & Diamond PCJ Rajesh Exports (Shubh Brand) Senco SGJH Tara Jewels Thangamayil TBZ Source: Company, CRISIL Research stores 179 40 48 62 36 82 47 46 36 26 25 Dominant region presence Pan India South South South North South (Karnataka) Eastern More in Kolkata & Mumbai Western South (Tamil Nadu) Western South North & Central Delhi (1 store) Delhi & Mumbai (1 store) Gujarat & Mumbai Delhi, Gujarat & Mumbai (1 store) Central Region with minor presence Regions for expansion FY14 Pan India; mostly East Pan India Pan India North, Central & West South, West Karnataka North & Central Pan India North & Central Tamil Nadu Pan India

Focus on high-ticket wedding and diamond jewellery


PCJs focus is on the high-ticket wedding jewellery segment, which constitutes 60-65% of total jewellery sales in India. The companys average selling price of jewellery is around 1.25 lakh. It prefers to strategically set up large format showrooms to target wedding customers. Its stores span 8,000-11,000 sq ft in large cities and between 4,000 sq ft and 5,000 sq ft in smaller cities. Large format stores help PCJ to capture the demand for high ticket value wedding jewellery and give a competitive advantage against both organised and unorganised players. Thus, with aggressive expansion of stores and average store size of 5,486 sq ft, revenue per sq ft has increased by 34% from 99,832 in FY11 to 179,784 in FY13. Samestore (10 stores) revenues have increased by 13% in FY13 from FY12. Over FY11-13, samestore revenues grew at CAGR of 29%. Going forward, with expansion of stores in completely new regions, we expect revenues per sq ft to decline given the lower pick-up of stores outside NCR. PCJ focuses on regional sensibilities for weddings; it employs local craftsmen conversant with traditions of different communities to manufacture traditional wedding jewellery. Based on the high ticket size of jewellery and the companys continued focus on this segment, we expect the wedding jewellery segment to show steady growth in FY14.

High share of diamond jewellery boosts profitability


Compared to other gold jewellery players, PCJs revenue mix leans towards diamond jewellery, which offers both higher revenue and better margins. Diamond jewellery sales increased from ~18% of domestic sales in FY10 to 30.8% in FY13. Consequently, the companys domestic diamond sales/sq ft increased to 55,461 in FY13 from 20,139 in FY11. The companys diamond jewellery business has been generating gross margin of 25-30% as compared to 9-10% in gold jewellery. With higher proportion of diamond jewellery (~31% in FY13), the blended domestic gross margin of PCJ was 16% in FY13. Consequently, the EBITDA margin has also improved from 10% in FY11 to 12.5% in FY13 despite the aggressive retail expansion. Going forward; we expect EBITDA margin to decline with expansion of stores in completely new regions. For a store in a new region, the breakeven takes place in one-two years. However, with 30-32% of diamond jewellery in domestic sales,

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the decline in EBITDA margin will be marginal. Compared to other organised retail players, PCJ had average revenues/sq ft/month of ~15,000 in FY13 due to the high proportion of diamond jewellery. Despite the aggressive retail expansion, PCJ was able to maintain RoCE at around 35% in FY13. The increasing share of high-margin diamond jewellery in sales has contributed to better return ratios over the past few years. However, diamond jewellery poses a high risk of inventory obsolescence and higher inventory days as compared to gold jewellery. Even with the exposure to this risk, PCJ has been able to maintain its margins over the years.

Figure 8: Increased focus of competitors on diamond Figure 7: Increase in diamond jewellery sales
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FY10 Gold Jewellery FY11 FY12 FY13 Other Jewellery Diamond Jewellery 81.20% 76.40% 72.60% 68.50% 0.90% 17.90% 0.70% 22.90% 0.70% 0.72%

jewellery
100% 90% 30 52 31 25

26.70%

30.80%

80% 70% 60% 50% 40% 30% 20% 10% 0% Gitanjali Gold Jewellery 48

70

69

75

Titan

PCJ Diamond Jewellery

TBZ

Source: Company, CRISIL Research

Source: Company, CRISIL Research

Manages gold price volatility via metal loans


PCJ procures 100% of the gold required for manufacturing under the gold loan schemes from canalising agencies and international bullion suppliers. Under this arrangement, price of the gold purchased is fixed on the basis of the then prevailing gold rate for sale to customers. This mechanism minimises any risk relating to gold price fluctuations between the time of raw material procurement and the sale of finished products to customers. This protects the company from a sharp fall in gold prices and limits the upside in terms of inventory gain. However, PCJ is exposed to the risk of volatility in diamond prices.

Procures 100% of its gold requirement under the gold loan schemes

New regulations on gold imports


Earlier, the RBI had banned banks from importing gold on a consignment basis for domestic consumption. It had also mandated that nominated banks and other agencies could import gold only on 100% cash basis, unlike using letter of credit (LC) benefits. This has now been replaced with new norms, wherein the RBI has placed restrictions on gold import, and has mandated that banks and nominated agencies should retain 20% (or one-fifth) of imported gold in customs bonded warehouses. The importers will be able to further import gold only if 3/4 of this 20% (3/4 of the gold in warehouses) is exported (in any form, say jewellery). Further, the RBI has excluded supplies to units in Special Economic Zones (SEZs) and export units and to star/premier trading houses from being counted towards the 3/4 (of 20%) export
th th th

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quota. The impact of these norms on PCJ would not be significant as it has both SEZ and non-SEZ units that can cater to the export market. At the same time, many local players, who trade only in the domestic market might witness tight supplies.

Regulations to benefit organised players compared to unorganised peers


Stringent regulations reduced imports in June 2013 to 35 tonnes from average 70 tonnes in FY13 triggering a sharp rise in premium in the local market, thus making the survival of local players difficult. Over the medium to long term, organised players will gain significant share from unorganised players as they have funding cost advantage through metals loans .

Competitive landscape
Compared to other large traditional/regional players, PCJ has expanded at a faster pace and has been able to break even within one-two years of operations of new stores. Also, PCJ has better profit margins and has been able to maintain these margins despite aggressive retail expansion.

Table 7: Better return ratios than competitors


Profitability/ratios (%) EBITDA margin (3-yr avg.) PAT margin (3-yr avg.) RoE (3-yr avg.) RoCE (3-yr avg.) PCJ 11.1 7.4 46.9 42.8 TBZ 8.4 4.2 43 22 Thangamayil 8.6 4.3 40.7 30.4 Gitanjali 7.2 3.4 15.1 26.5 Titan 9.6 6.9 46.7 43.7

Source: Company, CRISIL Research The shift from unbranded jewellery to branded jewellery should provide some room for the players to co-exist and compete on customer loyalty and variety, underlined by quality assurance. On the flip side, this will likely lead to higher spending on advertising, lower volumes and realisations and/or suppressed margins on gold jewellery. Given, the lower pickup in stores outside Delhi, PCJs ability to successfully penetrate these regions and establish a brand is a key monitorable.

Low focus on exports


Exports contribution to total revenues has decreased from 33.5% in FY10 to 25% in FY13. PCJ exports jewellery (80% gold and rest diamond as of FY13) to wholesalers in Dubai, Singapore and Hong Kong, with whom it enjoys a long-term relationship. Going forward, the focus on exports will be lower due to rising competition from other countries. We estimate export revenues to continue to contribute about 10 bn over the long term. This move is likely to help the company reduce its working capital cycle in the long term as inventory and debtor days are higher in the export markets than in the domestic market. Rising proportion of diamond jewellery and slower growth in the export market will help PCJ maintain its margins.

10

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Figure 9: Decline in exports


100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FY10 Domestic Sales FY11 FY12 Export Sales FY13 67% 66% 67% 74% 34% 34% 33% 26%

Source: Company, CRISIL Research

11

CRISIL IERIndependentEquityResearch

Peer comparison
Growth rate (%) FY09-13 Revenue CAGR PCJ Tara Jewels Ltd Thangamayil Jewellery Ltd Titan Industries Ltd TBZ 59% 20.2% 58% 27% 25% FY11 9.9 9.8 9.0 9.4 7.3 EBITDA margin (%) FY12 10.9 9.4 10.4 9.5 8.8 FY13 12 9.8 9.0 9.4 7.3 FY11 7.4 3.6 4.8 6.7 3.3 PAT margin (%) FY12 7.6 3.9 5.3 6.8 4.1 FY13 7.2 4.5 2.7 7.2 5.1 FY11 114 130 129 101 130 Inventory days FY12 166 146 135 133 132 FY13 182 145 123 148 225 FY11 2.2 1.4 3.2 2.2 2.8 Net asset turnover (x) FY12 2.0 1.3 3.1 2.1 2.5 FY13 1.5 1.4 2.9 1.9 1.9 FY11 101 30 45.8 39.7 35 Operating income FY12 54 29 71.9 35.4 16 FY13 32 18 34.8 14.4 19.1 FY11 100 42 89.2 65.2 85 EBITDA FY12 69 35 99.4 35.6 40 FY13 52 17 (18.1) 21.5 21 Adjusted PAT FY11 119 77 95.0 70.9 133 FY12 59 30 90.6 38.9 45 FY13 26 37 (30.3) 18.8 25.6

Source: Company, CRISIL Research

12

PC Jeweller Ltd
`

Key Risks
Sector under scanner due to high CAD
At 920 tonnes in 2012-13, India's gold consumption (Jewellery and Bars and Coins) is the largest globally. It meets most of its requirements through imports. Gold accounts for about 10% of India's overall imports in value terms. Robust demand and high prices of the yellow metal weigh heavily on the country's current account deficit (CAD), especially at times when export growth is decelerating. In FY13 CAD was high at 5.1% of GDP. This necessitated stronger measures to control gold imports. The government hiked the import duty from 2% (a year ago) in phased steps to 10% and the RBI has put further curbs on gold import mandating that banks and nominated agencies should retain 20% (or one-fifth) of every lot of gold imports in the customs bonded warehouses. Going ahead, with stringent restrictions on imports to control CAD, the availability of gold supplies will be in question. This could raise domestic gold premiums, driving up raw material costs and, thus, affecting profitability of jewellery retailers.

Measures to curb gold imports likely to marginally impact PCJ

High geographic concentration


PCJs addressable market is largely restricted to North India with some presence in Central India. With aggressive expansion plans of organised players such as TBZ and Titan; competition is expected to intensify. Until FY13, the company had no presence in southern and western India. PCJ will find it challenging to enter the South market which already has established players such Thangamayil, Joyalukkas, Kalyan and pan-India players such as Titan whose scale of operations is much larger. Moreover, most of the regional players such as Malabar, Tara Jewels and Senco have plans to expand in North India. This will further intensify competition for PCJ in North India. Coupled with little brand equity outside North, PCJs addressable market is restricted compared to other players such as Titan who have managed to create a brand outside their respective strongholds and reduced their geographical concentration.

Inventory Risk
PCJ has been increasing its focus on high-margin diamond jewellery. Its share increased from 18% of FY10 domestic sales to 31% in FY13. In case of old/unsold diamond jewellery inventory, the cost in terms of time spent in removing small-sized diamonds from jewellery is high. Also, it is difficult to use recycled small diamonds for new jewellery due to the different size, shapes and cuts of small diamonds.

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CRISIL IERIndependentEquityResearch

Financial Outlook
Sales to grow at a CAGR of 18.7% over FY13-15
( mn) 60,000 101 50,000 40,000 30,000 20,000 10,000 19,772 FY11 FY12 FY13 FY14E FY15E Revenues Growth (%) (RHS) 30,419 40,184 49,403 54 32 23 15 56,628 100 80 60 3,000 40 20 2,000 1,000 1,965 FY11 FY12 EBIDTA FY13 FY14E FY15E EBIDTA Margin (RHS) 3,314 4,825 5,319 5,918 0.0 6.0 4.0 2.0 120

EBITDA margin to be steady


( mn) 7,000 6,000 5,000 4,000 10.9 9.9 12.0 10.8 10.5 (%) 14.0 12.0 10.0 8.0

Source: Company, CRISIL Research

Source: Company, CRISIL Research

PAT margins to decline, PAT to grow at steady level


( mn) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 FY11 FY12 FY13 FY14E FY15E Adj PAT Adj PAT Margin (RHS) 1,453 2,334 2,937 3,305 3,368 7.4 7.7 7.3 6.7 5.9 (%) 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 -

RoE and RoCE to fall, though will remain healthy


( mn) 70 57.8 60 50 40 30 30.3 20 10 0 FY11 FY12 ROE FY13 FY14E ROCE FY15E 21.5 18.2 53.3 40.8 34.4 29.6 29.0 53.3

Source: Company, CRISIL Research

Source: Company, CRISIL Research

Revenue per sq ft to decline due to aggressive expansion


() 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 FY11 FY12 FY13 FY14E FY15E Revenues/Sqft/month (Rs) 12,733 10,616 14,874 12,078 11,564

EPS to be steady
() 35.0 30.0 25.0 20.0 15.0 10.0 5.0 FY11 FY12 FY13 Adj EPS FY14E FY15E 32.6 18.8

17.4

16.4

18.5

Source: Company, CRISIL Research

Source: Company, CRISIL Research

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PC Jeweller Ltd
`

Management Overview
CRISIL's fundamental grading methodology includes a broad assessment of management quality, apart from other key factors such as industry and business prospects, and financial performance. Overall, we believe that the management has an established track record and strong understanding of the jewellery business.

Family-run business, experienced management


The promoters have been in the jewellery business in India for more than two decades. They are closely involved in the overall strategy, direction and management of the business and have been responsible for the growth of the business. Mr Balram Garg, 42, is the managing director and Mr Padam Chand Gupta, 55, is the chairman. The entire decision-making process at PCJ is centralised.

Second line of management


The top management is supported by Mr Guptas sons and a team of professionals. The management personnel have vast experience in their domain and are associated with the company for over half a decade. Designation Chief operating officer Chief finance officer President (HR & business development) President (diamond manufacturing) President (gold manufacturing) Senior vice president (accounts & taxation) Senior vice president (projects & audit) Company secretary & compliance officer Employee Mr R. K. Sharma Mr Sanjeev Bhatia Mr T. M. Lakshmi Kanthan Mr Nitin Gupta Mr Sachin Gupta Mr Raja Ram Sugla Mr Kuldeep Singh Mr Vijay Pawar Background M Com; over 29 years of experience in foreign exchange, credit and administration sectors MA, MBA; over 25 years of experience in the finance sector B.Sc; over 40 years of experience in the banking sector B Com, Delhi University; over 15 years of experience in the jewellery sector B Com, Delhi University; over 15 years of experience in the jewellery sector B Com, CA; over 10 years of experience in the jewellery sector B.Sc, CA; over five years of experience in accounts and taxation B.Sc, CS; over six years of experience in legal and secretarial functions

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CRISIL IERIndependentEquityResearch

Corporate Governance
CRISILs fundamental grading methodology includes a broad assessment of corporate governance and management quality, apart from other key factors such as industry and business prospects, and financial performance. In this context, CRISIL Research analyses the shareholding structure, board composition, typical board processes, disclosure standards and related-party transactions. Any qualifications by regulators or auditors also serve as useful inputs while assessing a companys corporate governance. Overall, corporate governance at PCJ meets the minimum levels supported by reasonably good board practices and an independent board.

Board composition
The board comprises four directors, of which two are independent directors. The independent directors have been on the board since September 2011. This is in keeping with SEBIs Clause 49. Based on our interaction with the independent directors, we believe they possess a fair understanding of the companys business and processes.

Profile of independent directors


Name Manohar Lal Singla Krishan Kumar Khurana Source: Company 55 Age 54 Qualification Masters degree in Business Administration and Doctor of Philosophy in Management from the University of Delhi Masters degree in Arts from Kurukshetra University, Kurukshetra; Bachelors degree in Law from the University of Delhi Date of appointment September 2011 September 2011 Experience Over 25 years in education Over 25 years in legal services

Boards processes
The companys quality of disclosure can be considered good judged by the level of information and details furnished in the annual report, websites and other publicly available data. The company has all the necessary committees audit, remuneration and investor grievance - in place to support corporate governance practices. The audit committee is chaired by an independent director, Mr Manohar Lal Singla.

Compensation level of key management personnel is low


The compensation structure for key management personnel (FY12) appears low which can result in attrition. However, most of the senior people in the management have been associated with the company for a long time which minimises this risk. The compensation structure for key management personnel for FY13 is not available to us. Going forward, the company is contemplating about ESOPs to retain key managerial personnel.

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PC Jeweller Ltd
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Valuation
multiple of 8x to EPS of 18.8 to arrive at a fair value of 150 per share.

Grade: 5/5

We have used the price-to-earnings ratio (P/E) method to value PCJ. We have applied a P/E

One-year forward P/E band


() 250 200 150 100 50 0

One-year forward EV/EBITDA band


( mn) 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0

Dec-12

May-13

Dec-12

May-13

Jan-13

Jun-13

Jan-13

Feb-13

Feb-13

Mar-13

Mar-13

Jun-13

Jul-13

Apr-13

Aug-13

Sep-13

Apr-13

Jul-13

Aug-13
-1 std dev

PCJ

2x

4x

6x

8x

10x

EV

3x

4x

5x

8x

Source: NSE, CRISIL Research

Source: NSE, CRISIL Research

P/E premium / discount to NIFTY


-78% -80% -82% -84% -86% -88% -90% -92% -94% -96%

P/E movement
(Times) 12 10 +1 std dev 8 6 4 2

Jan-13

Dec-12

Jun-13

May-13

Feb-13

Mar-13

Apr-13

Jul-13

Aug-13

Sep-13

Dec-12

May-13

Jan-13

Feb-13

Mar-13

Jun-13

Apr-13

Jul-13

Aug-13

Premium/Discount to NIFTY Median premium/discount to NIFTY

1yr Fwd PE (x)

Median PE

Source: NSE, CRISIL Research

Source: NSE, CRISIL Research

Peer comparison
M Cap Companies PC Jewellers Tara Jewels Thangamayil Titan Industries TBZ mn 17,543 2,929 2,799 198,021 13,070 FY11 58.3 20.3 36.2 49 55.4 RoE (%) FY12 52.2 21.7 48.3 48.2 42.9 FY13 30.3 19.1 28.1 42.3 30 FY12 NA NA 4.1 33.7 NA P/E (x) FY13 7 5.2 6.3 23.7 12 FY14E 4.19 3.22 7.17 27.69 11.85 FY15E NA NA 5.76 22.9 8.27 FY12 NA NA 1.6 13.9 NA P/B (x) FY13 1.5 0.74 1.6 9.9 2.6 FY14E 1.07 0.46 1.37 7.7 2.57 FY15E NA NA 1.17 6 2

Source: CRISIL Research, Industry sources

Sep-13

Sep-13

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CRISIL IERIndependentEquityResearch

Company Overview
PCJ was established in 2005 after a split between the two promoter families of PP Jewellers. PP Jewellers was set up in 1993 by Mr Padam Chand Gupta and Mr Kamal Gupta; after the business was split in 2005, Mr PC Gupta retained the flagship showroom in Karol Bagh under PCJ. PCJ (Delhi-based) is promoted by brothers Mr Padam Chand Gupta and Mr Balram Garg. The company is largely a domestic retail player well established in North India. In 2012, PCJ was listed on the NSE and the BSE through an IPO of 6,000 mn.

Business profile
Retailing of gold and diamond-studded jewellery: PCJ manufactures jewellery made of gold, diamond and other precious stones, platinum and silver. It retails gold jewellery and diamond-studded jewellery under the PC Jeweller brand. In FY13, domestic operations accounted for 75% of total revenues. As of FY13 it has 30 showrooms in 23 cities in North and Central India totalling ~166k sq ft. The company intends to add 20 new showrooms in FY14 (133,000 sq ft) using the proceeds from the IPO. In Q1FY14, PCJ opened six stores adding 33,000 sq ft, expanding its reach in 28 cities in 10 states.

Manufacturing facilities
Location Noida SEZ, Uttar Pradesh Noida SEZ, Uttar Pradesh Selaqui, Dehradun, Uttarakhand Noida, Uttar Pradesh Source: CRISIL Research Export: PCJ exports gold and diamond jewellery to international distributors in Dubai, Singapore and Hong Kong. The export sales contribution to total revues was 25% in FY13. Going forward, the focus on export will be lower. Commissioning date 20-Nov-07 3-Mar-11 30-Mar-10 17-Nov-11 Purpose Jewellery for exports Jewellery for exports Jewellery for domestic market Jewellery for domestic Area in sq ft 36,570 3,938 8,611 34,000

Key Milestones
2005 2007 2008 2009 2010 2011 2012 The company was incorporated as P Chand Jewellers Private Ltd Showroom in Karol Bagh (New Delhi) opened Showrooms in Noida and Panchkula (New Delhi) opened Export operations from the manufacturing unit in the Noida SEZ commenced Showrooms in Faridabad and Dehradun opened Operations at the manufacturing unit in Selaqui, Dehradun commenced Showrooms in Pitampura (New Delhi) and Chandigarh opened Operations at the second manufacturing unit in Selaqui, Dehradun commenced Showrooms opened in Preet Vihar (New Delhi), Ghaziabad, Gurgaon, Lucknow, Indore, Bhopal, Raipur, Jodhpur and Bhilwara Converted from private limited to public limited Operations from the second export unit in the Noida SEZ commenced Showrooms opened in Ludhiana, Haridwar, Bilaspur, Pali, South Extension (New Delhi), Beawar, Ajmer and Amritsar Operations at the manufacturing unit in Noida commenced Showrooms opened in Kanpur, Rohtak, Indirapuram (Ghaziabad), Rajouri Garden (New Delhi), Kingsway Camp (New Delhi) and Greater Kailash-I (New Delhi)

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PC Jeweller Ltd
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Annexure: Financial
Income statement
( m n) Operating incom e EBITDA EBITDA m argin Depreciation EBIT Interest Operating PBT Other income Exceptional inc/(exp) PBT Tax provision Minority interest PAT (Reported) Less: Exceptionals Adjusted PAT FY11 19,772 1,965 9.9% 30 1,935 369 1,566 77 14 1,657 189 1,467 14 1,453 FY12 30,419 3,314 10.9% 66 3,248 751 2,497 174 (21) 2,650 337 2,313 (21) 2,334 FY13 40,184 4,825 12.0% 100 4,725 1,251 3,474 202 (411) 3,265 739 2,527 (411) 2,937 59% FY13 32.1 45.6 25.9 (5.9) FY14E 49,403 5,319 10.8% 142 5,177 1,305 3,872 594 4,467 1,161 3,305 3,305 FY15E 56,628 5,918 10.5% 206 5,712 1,503 4,208 536 4,744 1,376 3,368 3,368

Balance Sheet
( m n) Liabilities Equity share capital Reserves Minorities Net w orth Convertible debt Other debt Total debt Deferred tax liability (net) Total liabilities Asse ts Net fixed assets Capital WIP Total fixed ass ets Investm ents Current assets Inventory Sundry debtors Loans and advances Cash & bank balance Marketable securities Total curre nt assets Total curre nt liabilities Net curre nt assets Intangibles/Misc. expenditure Total assets FY11 447 2,807 3,254 1,396 1,396 (4) 4,645 317 50 366 5,501 4,248 467 223 10,439 6,160 4,279 4,645 FY12 1,340 4,162 5,502 5,783 5,783 (4) 11,280 566 219 784 0 11,724 6,985 929 791 20,430 9,944 10,486 10 11,280 FY13 1,791 12,097 13,888 2,331 2,331 (50) 16,169 628 292 919 1 17,137 6,762 2,659 2,846 4,429 33,833 18,595 15,239 10 16,169 FY14E 1,791 15,128 16,919 1,822 1,822 (50) 18,691 986 292 1,277 1 22,333 8,314 2,470 3,157 4,429 40,702 23,299 17,403 10 18,691 FY15E 1,791 18,217 20,008 1 599 600 (50) 20,558 1,279 292 1,571 1 24,513 9,530 2,831 3,298 4,429 44,601 25,625 18,976 10 20,558

Ratios
FY11 Grow th Operating income (%) EBITDA (%) Adj PAT (%) Adj EPS (%) Profitability EBITDA margin (%) Adj PAT Margin (%) RoE (%) RoCE (%) RoIC (%) Valuations Price-earnings (x) Price-book (x) EV/EBITDA (x) EV/Sales (x) Dividend payout ratio (%) Dividend yield (%) B/S ratios Inventory days Creditors days Debtor days Working capital days Gross asset turnover (x) Net asset turnover (x) Sales/operating assets (x) Current ratio (x) Debt-equity (x) Net debt/equity (x) Interest coverage 114 125 78 75 61.9 75.5 63.7 1.7 0.4 0.4 5.2 166 126 84 116 55.9 69.0 52.9 2.1 1.1 0.9 4.3 0.6 0.1 1.5 0.2 100.5 99.5 118.5 96.5 FY12 53.9 68.7 60.6 (46.5)

FY14E 22.9 10.3 12.5 12.5

FY15E 14.6 11.3 1.9 1.9

9.9 7.4 57.8 53.3 57.3

10.9 7.7 53.3 40.8 43.7

12.0 7.3 30.3 34.4 36.8

10.8 6.7 21.5 29.6 35.9

10.5 5.9 18.2 29.0 32.9

Cash flow
( m n) Pre-tax profit Total tax paid Depreciation Working capital changes Net cas h from operations Cash from inves tm e nts Capital expenditure Investments and others Net cas h from investm ents Cash from financing Equity raised/(repaid) Debt raised/(repaid) Dividend (incl. tax) Others (incl extraordinaries) Net cas h from financing Change in cash position Closing cash FY11 1,643 (186) 30 (2,122) (636) (141) (141) 270 561 (248) 583 (194) 223 FY12 2,671 (337) 66 (5,639) (3,239) (494) (0) (494) 668 4,387 (754) 4,301 568 791 FY13 3,676 (785) 100 1,730 4,722 (235) (4,429) (4,665) 5,633 (3,452) (210) 26 1,997 2,054 2,846 FY14E 4,467 (1,161) 142 (1,854) 1,594 (500) (500) (509) (537) 263 (783) 311 3,157 FY15E 4,744 (1,376) 206 (1,432) 2,143 (500) (500) (1,222) (537) 258 (1,501) 141 3,298

7.0 1.5 3.2 0.4 7.1 0.9

3.8 0.7 1.3 0.1 16.2 4.3

3.7 0.6 0.9 0.1 15.9 4.3

182 181 61 72 51.5 67.3 47.2 1.8 0.2 (0.4) 3.8

191 185 61 73 44.5 61.2 45.0 1.7 0.1 (0.3) 4.0

183 176 61 73 35.2 50.0 39.8 1.7 0.0 (0.4) 3.8

Quarterly financials*
( m n) Net Sales Change (q-o-q) EBITDA Change (q-o-q) EBITDA m argin PAT Adj PAT Change (q-o-q) Adj PAT m argin Adj EPS Q1FY13 Q2FY13 Q3FY13 10,185 1,132 11% 669 669 7% 3.7 Q4FY13 11,442 12% 1,323 17% 11.6% 825 825 23% 7% 4.6 Q1FY14 13,790 21% 1,552 17% 11.3% 900 900 9% 6.5% 5.0

Per share
Adj EPS ( ) CEPS Book value Dividend ( ) Actual o/s shares (mn) FY11 32.6 33.2 72.9 44.7 FY12 17.4 17.9 41.1 133.9 FY13 16.4 17.0 77.5 1.0 179.1 FY14E 18.5 19.2 94.5 3.0 179.1 FY15E 18.8 20.0 111.7 3.0 179.1

*Quarterly numbers are available from Q3FY13 Source: CRISIL Research

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CRISIL IERIndependentEquityResearch

Focus Charts
Revenue and growth trends
( mn) 60,000 101 50,000 40,000 30,000 20,000 10,000 19,772 FY11 FY12 FY13 FY14E FY15E Revenues Growth (%) (RHS) 30,419 40,184 49,403 54 32 23 15 56,628 100 80 60 120

EBITDA margin to be steady


( mn) 7,000 6,000 5,000 4,000 3,000
40 20

(%) 12.0 10.9 9.9 10.8 10.5 14.0 12.0 10.0 8.0 6.0 4.0 2.0 1,965 3,314 FY12 EBIDTA 4,825 FY13 5,319 FY14E 5,918 0.0 FY11 FY15E EBIDTA Margin (RHS)

2,000 1,000 -

Source: Company, CRISIL Research

Source: Company, CRISIL Research

Aggressive retail expansion


(nos) 70 60 50 40 30 20 10 0 2 1 2 3 7 5 5 10 17 7 24 30 6 20 50 12

Gold and diamond revenues per sq ft


() 140,000 120,000 100,000 80,000 60,000 40,000 20,000 79,101 40,212 20,140 FY11 Gold Rev/Sqft FY12 FY13 Diamond Rev/Sqft 55,461 110,699 120,001

FY14E

Existing showrooms

Addition of showrooms

Source: Company, CRISIL Research

FY15E

FY08

FY09

FY10

FY11

FY12

FY13

Source: Company, CRISIL Research

RoE and RoCE to fall, though will remain healthy


( mn) 70 57.8 60 50 40 30 30.3 20 10 0 FY11 FY12 ROE FY13 FY14E ROCE FY15E 21.5 18.2 53.3 40.8 34.4 29.6 29.0 53.3

Stock performance
140 120 100 80 60 40 20 0

Dec-12

Jan-13

Mar-13

May-13

May-13

Jun-13

Feb-13

Apr-13

Jul-13

Aug-13

PCJ

NIFTY

-Indexed to 100 Source: Company, CRISIL Research Source: Company, CRISIL Research

20

Sep-13

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CRISIL IERIndependentEquityResearch
CRISIL Research Team
President
Mukesh Agarwal CRISIL Research +91 22 3342 3035 mukesh.agarwal@crisil.com

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