Subscribe to Tara Jewels IPO, says Magnum Research
Magnum research has come out with its report on "Tara Jewels Limited IPO". According to the research firm, the company is targeting MIG customer‘s thus any slowdown in economy may impact the growth and profitability of the company. One can subscribe to the issue for immediate and long term returns, says ressearch firm.
November 22, 2012 / 16:33 IST
Magnum research has come out with its report on "Tara Jewels Limited IPO". According to the research firm, the company is targeting MIG customer’s thus any slowdown in economy may impact the growth and profitability of the company. One can subscribe to the issue for immediate and long term returns, says ressearch firm.
Tara Jewels Limited is an integrated player in the jewellery industry with experience ranging from designing to retailing of jewellery. The company runs three operations i.e. manufacturing, exporting & retailing. The company manufactures and also out source studded jewellery for exports to jewellery chains including Christ Uhrean & Schmuck and retailers including Walmart. We primarily export to Australia, China, Canada, European Union, South Africa, UAE, UK and USA. The Portfolio of products of the company are gold, platinum, honeydium, pristinium and silver jewellery, all with or without studded precious and semi-precious stones.Also Read: Tara Jewels IPO opens: Should you subscribe?The company has four manufacturing units, located in Panyu, China, Other three in Mumbai out of which one in MIDC and two in Seepz. The company entered jewellery retailing in India under the brand name "TARA JEWEL". The Promoters are first generation entrepreneur with 31 years of experience in manufacturing and retail. Mr. Rajeev Sheth (CMD) is certified gemologist from GIA. In addition to Promoter, a dedicated management team comprising of, Mr. Vikram Raizada (executive Director and CEO-Retail), Ms. Nalini Rajan (Director, finance) & Ms. Alpana Deo (Director). We recommend to subscribe to this Issue for immediate and also long term returns……….Leadership in exports market for studded jewellery: The company had been the highest exporter in gems and jewellery sector for the years 2008-2009 and 2009-2010 and during the same time one of company’s manufacturing units situated in SEEPZ had been awarded as highest and second highest net foreign exchange earner. The design and quality of studded jewellery products, coupled with export customer base, including retail chains and wholesalers, have strengthened company’s presence in international markets and has also secured new business.Access to advanced technology and modern machinery: The company has state of the art equipment for wax injection, investment and casting. The company has multi-skilled workforce and patented turntable technology to developed manufacturing facility based on “precision oriented jewellery” concept. The Company has robotics technology for stone setting in studs, and advanced plating technology which allows various types of plating on silver also laser technology for stamping and quality testing purposes. The company has applied for grant of patent on resizable ring technology which enables resizing of rings without disturbing the shape or falling of stones in case of studded rings and also grant of patent for miracle plate technology.CONCERNS- Profit margins are not very attractive.
- Competition from other producers and unorganized sector.
- The business is seasonal and to identify latest fashion trend is difficult.
- Luxury items mainly depend on purchasing power of common man as the company is targeting MIG customer’s thus any slowdown in economy may impact the growth and profitability of the company.
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