Page 27 - Bullion World Volume 5 Issue 08 August 2025

Bullion World | Volume 5 | Issue 08 | August 2025

Profitability: The Real Gold Standard

Return on Capital Employed (ROCE) Return on Equity (ROE) gives another
reveals how efficiently each company is lens on profitability from shareholders’
using its capital. perspective.

Return on Capital Employed (ROCE) of Return on Equity (ROE) of Jewellery
Jewellery Companies Companies with IPOs since 2021 (%)
with IPOs since 2021 (%) • Kalyan Jewellers, Manoj Vaibhav, and Senco Gold
• Manoj Vaibhav and Kalyan Jewellers show the all deliver superior ROE, underlining consistent
highest ROCE, indicating outstanding operational value creation for investors.
performance relative to investments.
• All five brands post strong double-digit
percentages—even the smallest, RBZ, affirms the
sector’s robust fundamentals.

Strategic Positioning: More Than Just Gold Product Mix Strategy
The companies show interesting diversification
patterns:
Gold-Heavy Players:
• Motisons: 91.8% gold & diamond, 8.1% silver
• Manoj Vaibhav: 90.1% gold, 6.6% silver/diamond
• RBZ: 81.9% gold ornaments, 8.2% others

Balanced Portfolios:
• Kalyan Jewellers: 66.7% gold, 31.1% studded
jewellery
• Senco Gold: 85.1% gold, 10.4% diamond and
stones
This diversification reflects different market
strategies—some focusing on traditional preferences
Geographic Footprints
Each player has carved out distinct territories: while others chase higher-margin studded jewellery.
• Kalyan Jewellers: True pan-India and international The IPO Proceeds Playbook
presence
• Senco Gold: Eastern India stronghold with All five companies followed remarkably similar
aggressive expansion plans strategies with their IPO funds:
• Manoj Vaibhav: Dominates Andhra Pradesh and Retail Expansion: New store launches across target
Telangana markets geographies
• Motisons & RBZ: Building scale in North-West India Working Capital Management: Essential for inventory-
heavy jewellery business

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