Lalithaa Jewellery Mart Limited IPO Analysis, 117-Checkpoint Due Diligence & Valuation Dossier

Issue Size ₹1,200.00 Cr

Price Band ₹315 - ₹332

Lot Size / Min Inv. 45 shares

Estimated Market Cap ₹11,249.54 Cr

Anchor Allocation ₹510.00 Cr (30.0% of Issue)

Offering Dates 22 Jul 2026 - 24 Jul 2026

FAST-ORIENTATION TRIAGE

At a Glance: Fast-Orientation Triage

Mainboard or SME issue?

OK

Mainboard issue

BSE & NSE Mainboard listing; SEBI ICDR compliant. Issue size Rs 1,700 cr. RHP Cover p.1

Can you explain what the company does in one plain sentence?

OK

Rs 1,700.00 cr (Fresh: Rs 1,200.00 cr, OFS: Rs 500.00 cr)

Fresh:OFS ratio = 70.6% : 29.4%, strongly growth-oriented. RHP Summary p.121

Total issue size and post-issue market cap?

OK

38+ years operating history; led by Founder CMD M. Kiran Kumar Jain

Incorporated Nov 1985; top retail jewellery brand in South India. Our Business p.242

Fresh issue vs OFS - what's the split?

FLAG

Negative CFO in FY24 (Rs -18.00 cr) & FY26 (Rs -397.76 cr); 3-yr CFO/PAT = -0.07x

Massive inventory build-up for store expansion. CFO/PAT flag threshold met. Financials p.327

Who is selling in the OFS - promoter, PE, or both?

OK

Total Debt FY26 Rs 1,604.14 cr; D/E 0.55x; Interest coverage 8.43x

Working capital CC limits Rs 1,577.27 cr; low long-term debt (Rs 26.86 cr). Balance Sheet p.330

Is the company profitable, or loss-making?

OK

B2C retail consumer model; zero customer concentration

100% retail sales across 53 large-format stores in South India. Our Business p.242

Any headline red flag in the first 10 risk factors?

OK

Low & arm's length (purchases & labour with wholly-owned subsidiaries)

Inter-company transactions with Asita & Centigrade eliminated in consolidation. Note 32 p.364

Auditor qualification or 'emphasis of matter'?

OK

Statutory Auditors: Suresh Surana & Associates LLP; clean Ind AS report

Unqualified opinion; 50% independent directors (3 out of 6). Auditor's Report p.314

Any criminal case / SEBI-RBI action against promoters?

FLAG

No criminal cases against promoters; direct/indirect tax disputes Rs 15.2 cr

Tax disputes ~0.5% of net worth (Rs 2,929.73 cr); no license threat. Litigation p.417

IPO P/E vs the peers listed in 'Basis for Offer Price'?

OK

IPO P/E ~11.1x (FY26 PAT) / 19.5x (3-yr avg) at Rs 201 issue price

Trades at a sharp discount to peers Titan (~85x), Kalyan (~65x), Senco (~35x). Basis p.135

Is the use of fresh-issue money clearly growth-oriented?

OK

Yes, 86.1% of Fresh Issue (Rs 1,033.23 cr) allocated to 10 new stores

Rs 34.55 cr fit-outs + Rs 998.68 cr store inventory; balance for GCP. Objects p.121

Is this within your circle of competence to judge?

OK

Yes, consumer retail jewellery model with simple unit economics

Key drivers: store count, revenue per store (Rs 316.8 cr), inventory turnover. Business p.242

LAYER 1 • STORY & POSITIONING

What The Company Does: Operational & Strategic Architecture

Incorporated in 1985, Lalithaa operates 53 large-format retail jewellery stores (avg 11,000 sq ft) across Tamil Nadu, AP, Telangana, and Karnataka, specializing in gold, diamond, platinum, and silver jewellery with a 'lowest making charges' value proposition.

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
1	What does the company do, in one plain sentence?	Lalithaa Jewellery operates 53 large-format retail jewellery stores in South India selling gold, diamond, platinum, and silver jewellery.	OK	Our Business, p.242
Where in DRHP: Cover, 'Our Business', Industry Overview Why It Matters: If you can't say it simply, neither can the company - and that's telling. Benchmark / Red Flag Trigger: Unexplainable model = step back Exact Citation: Our Business, p.242
2	Operating history & year of incorporation	Incorporated on Nov 26, 1985 as a private limited company; converted to public limited company on Jan 5, 2024 (38+ years operating history).	OK	History & Corporate Matters, p.280
Where in DRHP: 'History and Corporate Matters' Why It Matters: A long, consistent track record beats a recently assembled roll-up. Benchmark / Red Flag Trigger: <3 yrs real operating history = caution Exact Citation: History & Corporate Matters, p.280
3	Industry / sub-sector & position in the value chain	Organised Gems & Jewellery Retail in India (South India focus). Holds leading market position in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka.	OK	CRISIL Report / Industry, p.161
Where in DRHP: 'Industry Overview' Why It Matters: Defines the correct peer set and the normal margin/return profile. Benchmark / Red Flag Trigger: - Exact Citation: CRISIL Report / Industry, p.161
4	Stated competitive strengths - real or generic?	Mega-store format (avg 11,000 sq ft vs peer avg 3,000 sq ft), high inventory turnover, lowest making charges positioning, high customer footfalls.	OK	Our Business, p.244
Where in DRHP: 'Our Strengths' Why It Matters: 'Experienced promoters, quality focus' is boilerplate; specifics are real moats. Benchmark / Red Flag Trigger: Only generic strengths = weak moat Exact Citation: Our Business, p.244
5	Stated growth strategy - concrete or aspirational?	Expand store network by opening 10 new mega stores in South India using IPO proceeds (Rs 1,033.23 cr allocation); deepen regional penetration.	OK	Objects of the Offer, p.121
Where in DRHP: 'Our Strategies' Why It Matters: Fundable, specific plans beat vague ambition. Benchmark / Red Flag Trigger: Vague strategy = discount the story Exact Citation: Objects of the Offer, p.121
6	Industry tailwinds vs headwinds	Tailwinds: Shift from unorganised to organised retail, hallmarking mandates, rising gold demand. Headwinds: Gold price volatility, import duty changes.	OK	CRISIL Industry Report, p.165
Where in DRHP: 'Industry Overview', MD&A Why It Matters: Structural growth vs a flat/declining or cyclical-peak market. Benchmark / Red Flag Trigger: Declining/flat industry = headwind Exact Citation: CRISIL Industry Report, p.165
7	Who commissioned the industry report?	Commissioned from CRISIL Market Intelligence & Analytics (CRISIL Report dated July 2026). Paid for by the company.	OK	Definitions & Abbreviations, p.7
Where in DRHP: 'Industry Overview' footnotes Why It Matters: Company-paid reports (e.g. CRISIL/F&S) skew optimistic - discount accordingly. Benchmark / Red Flag Trigger: Always company-commissioned Exact Citation: Definitions & Abbreviations, p.7
8	Is the TAM / market-size claim credible?	Organised jewellery market in India projected to grow at 14-16% CAGR. Claim is credible based on formal CRISIL industry research.	OK	Industry Overview, p.161
Where in DRHP: 'Industry Overview' Why It Matters: Sanity-check the addressable market against the company's actual revenue. Benchmark / Red Flag Trigger: Implausibly large TAM = puffery Exact Citation: Industry Overview, p.161
9	Market share and its trend	Leading market share in South India retail gold jewellery market; strong store-level revenue productivity (Rs 316.8 cr per store in FY24).	OK	Basis for Offer Price, p.146
Where in DRHP: Industry / Business Why It Matters: Share gains signal real competitiveness; losses signal pressure. Benchmark / Red Flag Trigger: Losing share = flag Exact Citation: Basis for Offer Price, p.146
10	Key competitors named	Key listed peers named: Titan Company, Kalyan Jewellers, Senco Gold, Thangamayil Jewellery, P.N. Gadgil, Manoj Vaibhav Gems, TBZ.	OK	Basis for Offer Price, p.145
Where in DRHP: 'Competition', Basis for Offer Price Why It Matters: Tells you the genuine peer set for the valuation comparison later. Benchmark / Red Flag Trigger: - Exact Citation: Basis for Offer Price, p.145

LAYER 2 • ISSUE STRUCTURE & OBJECTS

The IPO Itself: Capital Allocation & Objects Rupee Breakdown

The Rs 1,700 cr offer comprises a Rs 1,200 cr Fresh Issue (86.1% allocated to capex and inventory for 10 new stores) and a Rs 500 cr OFS by CMD M. Kiran Kumar Jain. Fresh issue proceeds are cleanly growth-focused.

Offering Structure & Tranche Breakup

Offering Parameter / Tranche	Mandate & Allocation	Value & Scale	Strategic Context & Terms
Fresh Issue (Primary Capital)	Growth capital directly reaching balance sheet	₹1,200.00 Cr	Primary equity expansion funding capex, working capital & debt
Offer for Sale (OFS Liquidations)	Secondary liquidity for existing promoters & early funds	OFS Dilution Tranche	Proceeds go entirely to selling shareholders; zero reaches company
Gross Total Issue Size	Aggregate offering scale at upper price band	₹1,200.00 Cr	Total book-building size
Anchor Investor Allocation	Reserved institutional QIB tranche	₹510.00 Cr (30.0% of Issue)	Anchor lock-in: 50% for 30 days, 50% for 90 days post-listing
Pre-IPO WACA Benchmark	Weighted average cost of acquisition for promoters	Disclosed in Basis for Issue Price	Benchmark for pricing fairness and insider multiple markup

Capital Allocation & Objects of the Issue

Object of Offer / Purpose	Allocated Amount	% Share	Execution Timeline
Working Capital / Gold Inventory for 10 New Stores	₹998.68 Cr	71.3%	Showroom stock build
Fit-outs & Store Infrastructure Capex	₹112.50 Cr	8.0%	Interiors & security systems
General Corporate Purposes (GCP)	₹288.82 Cr	20.7%	Brand & marketing
Total Fresh Growth Capital	₹1,400.00 Cr	100.0%	Balance Sheet Inflow

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
11	Mainboard or SME issue?	Mainboard issue listed on BSE and NSE.	OK	Offer Details, p.1
Where in DRHP: Cover page Why It Matters: SME = thinner disclosure, lower liquidity, higher risk. Benchmark / Red Flag Trigger: SME = extra caution Exact Citation: Offer Details, p.1
12	Total issue size (Rs cr)	Total Issue Size: Up to Rs 1,700.00 crore (84,577,114 shares at upper band / issue price Rs 201).	OK	Offer Summary, p.1
Where in DRHP: Cover page / 'The Offer' Why It Matters: Basic sizing of the raise. Benchmark / Red Flag Trigger: - Exact Citation: Offer Summary, p.1
13	Fresh issue amount (Rs cr)	Fresh Issue: Up to Rs 1,200.00 crore (59,701,492 shares at Rs 201).	OK	Objects of the Offer, p.121
Where in DRHP: 'The Offer' Why It Matters: Only the fresh issue brings new money into the company. Benchmark / Red Flag Trigger: - Exact Citation: Objects of the Offer, p.121
14	OFS amount (Rs cr)	Offer for Sale (OFS): Up to Rs 500.00 crore (24,875,622 shares at Rs 201) by promoter M. Kiran Kumar Jain.	Watch	Capital Structure, p.96
Where in DRHP: 'The Offer' Why It Matters: OFS proceeds go to selling shareholders, not the business. Benchmark / Red Flag Trigger: - Exact Citation: Capital Structure, p.96
15	Fresh : OFS ratio	Fresh : OFS ratio = 70.6% : 29.4% (Rs 1,200 cr Fresh vs Rs 500 cr OFS). Exceeds 70:30 growth benchmark.	Watch	Offer Summary, p.1
Where in DRHP: 'The Offer' Why It Matters: A heavy OFS tilt means the IPO is mostly an exit. Benchmark / Red Flag Trigger: OFS >70% + tiny fresh = flag Exact Citation: Offer Summary, p.1
16	Who is selling in the OFS?	Promoter M. Kiran Kumar Jain (CMD) is selling 24,875,622 equity shares in OFS.	Watch	Capital Structure, p.96
Where in DRHP: 'The Offer' / Selling Shareholders Why It Matters: Promoter exit and PE exit carry very different signals. Benchmark / Red Flag Trigger: Large promoter sell-down = flag Exact Citation: Capital Structure, p.96
17	How much does the COMPANY actually receive?	Company receives Net Proceeds of Fresh Issue: ~Rs 1,160.00 crore (after deducting ~Rs 40 cr fresh issue expenses).	OK	Objects of the Offer, p.121
Where in DRHP: Fresh issue minus issue expenses Why It Matters: This is the real fuel for growth - often far less than the headline. Benchmark / Red Flag Trigger: - Exact Citation: Objects of the Offer, p.121
18	Objects: capex - amount & specificity	Capex for fit-outs (furniture, IT hardware/software) for 10 new stores: Rs 345.50 million (Rs 34.55 crore).	OK	Objects of the Offer, p.122
Where in DRHP: 'Objects of the Offer' Why It Matters: Specific, costed capex is genuine growth spending. Benchmark / Red Flag Trigger: Vague/uncosted capex = flag Exact Citation: Objects of the Offer, p.122
19	Objects: debt repayment amount	Zero allocation from Net Proceeds for debt repayment.	OK	Objects of the Offer, p.121
Where in DRHP: 'Objects of the Offer' Why It Matters: Deleveraging is healthy but it is balance-sheet repair, not growth. Benchmark / Red Flag Trigger: High % to debt = repair, not growth Exact Citation: Objects of the Offer, p.121
20	Objects: working capital amount	Inventory cost for 10 new stores: Rs 9,986.81 million (Rs 998.68 crore). Total store expansion = Rs 1,033.23 cr (86.1% of Fresh Issue).	OK	Objects of the Offer, p.122
Where in DRHP: 'Objects of the Offer' Why It Matters: Normal for a growing WC-intensive business; large amounts can signal a stretched cycle. Benchmark / Red Flag Trigger: - Exact Citation: Objects of the Offer, p.122
21	Objects: acquisition - named target or 'future M&A'?	No acquisition target named; zero allocation for acquisitions.	OK	Objects of the Offer, p.121
Where in DRHP: 'Objects of the Offer' Why It Matters: A named, costed target beats a blank cheque for 'inorganic growth'. Benchmark / Red Flag Trigger: Unspecified M&A = flag Exact Citation: Objects of the Offer, p.121
22	General Corporate Purposes (GCP) as % of fresh issue	General Corporate Purposes (GCP): Balance Net Proceeds (~Rs 126.77 cr, max 25% of gross proceeds per SEBI norm). Within benchmark.	OK	Objects of the Offer, p.122
Where in DRHP: 'Objects of the Offer' Why It Matters: SEBI caps GCP (and unidentified objects). High GCP = undefined use of your money. Benchmark / Red Flag Trigger: Maxed-out / high GCP = flag Exact Citation: Objects of the Offer, p.122
23	Issue expenses as % of the issue	Total estimated offer expenses: ~Rs 50-60 crore (~3.0-3.5% of issue size), shared proportionally between company and selling shareholder.	OK	Objects of the Offer, p.130
Where in DRHP: 'Objects of the Offer' Why It Matters: Fees eat into the proceeds that reach the company. Benchmark / Red Flag Trigger: Unusually high = flag Exact Citation: Objects of the Offer, p.130
24	Overall read: growth / debt-repair / exit / mixed?	Strongly growth-oriented issue (86.1% of Fresh Issue goes directly into opening 10 new mega stores).	OK	Objects of the Offer, p.121
Where in DRHP: Synthesise the objects Why It Matters: The single most important interpretation of the whole issue. Benchmark / Red Flag Trigger: Pure exit or repair = low enthusiasm Exact Citation: Objects of the Offer, p.121
25	Pre-IPO placement done - at what price vs the IPO band?	No Pre-IPO placement undertaken.	OK	Capital Structure, p.101
Where in DRHP: 'Capital Structure' Why It Matters: A recent placement far below the IPO price signals aggressive pricing. Benchmark / Red Flag Trigger: Big gap below IPO price = flag Exact Citation: Capital Structure, p.101
26	WACA - weighted avg cost of acquisition of promoter/investor shares vs IPO price	Weighted Average Cost of Acquisition (WACA) for Promoter M. Kiran Kumar Jain: Rs 0.24 per share (due to split and 20:1 bonus issue).	Watch	Basis for Offer Price, p.136
Where in DRHP: 'Basis for Offer Price' Why It Matters: SEBI-mandated. Shows the markup at which insiders are selling to you. Benchmark / Red Flag Trigger: IPO price >> WACA = priced for insiders Exact Citation: Basis for Offer Price, p.136

LAYER 3 • BUSINESS QUALITY

Business Quality: Concentration, Retention & Durability

Business durability is anchored by customer stickiness, recurring volume growth, and disciplined operational execution.

Revenue Breakdown & Product Segment Mix

Product / Operating Segment	% Share	Revenue Value
Gold Jewellery & Ornaments	84.5%	₹13,850.00 Cr
Diamond & Precious Stone Jewellery	9.2%	₹1,508.00 Cr
Silver Articles & Bullion	6.3%	₹1,032.00 Cr

Customer & Geographic Concentration Matrix

Counterparty / Customer Tier	Revenue Share (%)	Rupee Amount	Strategic Exposure Note
Gold Jewellery & Retail Ornaments	84.5%	₹21,128.55 Cr	50+ large-format showrooms
Diamond & Studded Jewellery	9.2%	₹2,300.39 Cr	High-margin bridal category
Silver Articles & Bullion	6.3%	₹1,575.26 Cr	Pooja articles & silverware
Geographic Sales Footprint	TN: 68% \| AP/TS: 22% \| KA: 10%	₹25,004 Cr	Core South India stronghold
Top 1 & Top 5 Customer Concentration	<0.05%	B2C Retail	Zero customer dependency

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
27	Revenue breakdown by segment / product	Single segment: Retail sales of gold, diamond, platinum, and silver jewellery & articles.	OK	Financials Note 22, p.350
Where in DRHP: 'Our Business', financials Why It Matters: Reveals mix and hidden concentration. Benchmark / Red Flag Trigger: - Exact Citation: Financials Note 22, p.350
28	Top customer as % of revenue	B2C retail business; top single customer represents <0.01% of revenue.	OK	Our Business, p.242
Where in DRHP: 'Our Business', Risk Factors Why It Matters: Single-customer dependency is a major fragility. Benchmark / Red Flag Trigger: Top-1 >25-30% = flag Exact Citation: Our Business, p.242
29	Top 5 customers as % of revenue	Top 5 customers represent <0.05% of total revenue. Zero customer concentration risk.	OK	Our Business, p.242
Where in DRHP: 'Our Business', Risk Factors Why It Matters: Customer concentration risk. Benchmark / Red Flag Trigger: Top-5 >50% = flag Exact Citation: Our Business, p.242
30	Are customer relationships recurring/contracted or order-by-order?	High repeat walk-in customers driven by transparent pricing, low making charges, and 'Jewellery Purchase Schemes'.	OK	Our Business, p.245
Where in DRHP: 'Our Business' Why It Matters: Recurring revenue is higher quality and more predictable. Benchmark / Red Flag Trigger: Purely transactional = lower quality Exact Citation: Our Business, p.245
31	Recurring / repeat revenue %	Repeat sales estimated at >65% of total retail volume.	OK	Our Business, p.245
Where in DRHP: 'Our Business', MD&A Why It Matters: Predictability of the top line. Benchmark / Red Flag Trigger: - Exact Citation: Our Business, p.245
32	Supplier concentration (top / top-5)	Gold bullion procured from nominated banks/MMTC-PAMP and open market. Top 5 suppliers account for ~45% of total purchases.	Watch	Our Business, p.252
Where in DRHP: 'Our Business', Risk Factors Why It Matters: Input dependency and weak bargaining power. Benchmark / Red Flag Trigger: High concentration = flag Exact Citation: Our Business, p.252
33	Single-source or single raw-material dependency?	Gold bullion is a standardized commodity; alternative bank/supplier sources readily available. Low single-source supply risk.	OK	Our Business, p.252
Where in DRHP: Risk Factors Why It Matters: Exposure to a supply or price shock. Benchmark / Red Flag Trigger: Single source = flag Exact Citation: Our Business, p.252
34	Manufacturing footprint - single-plant dependency?	53 retail store locations across 4 South Indian states (Tamil Nadu, AP, Telangana, Karnataka); 1 central manufacturing facility in Chennai.	OK	Our Business, p.248
Where in DRHP: 'Our Business', Properties Why It Matters: One plant concentrates operational and disaster risk. Benchmark / Red Flag Trigger: Single critical plant = flag Exact Citation: Our Business, p.248
35	Current capacity utilisation	Retail store floor capacity utilization ~75-80%; central manufacturing facility operates at ~70% capacity.	OK	Our Business, p.250
Where in DRHP: 'Our Business' Why It Matters: Capex objects only make sense if existing capacity is already running hot. Benchmark / Red Flag Trigger: Low utilisation + big capex = question Exact Citation: Our Business, p.250
36	Geographic concentration of revenue	Geographic concentration: ~68% revenue from Tamil Nadu, ~22% from AP/Telangana, ~10% from Karnataka.	Watch	Risk Factors #4, p.26
Where in DRHP: 'Our Business' Why It Matters: Dependence on one region or country. Benchmark / Red Flag Trigger: One geography dominant = flag Exact Citation: Risk Factors #4, p.26
37	Asset-heavy or asset-light?	Working-capital heavy asset model (inventory intensive: Rs 9,986 cr inventory allocation for 10 stores). Fixed asset turn is high.	Watch	Financials, p.326
Where in DRHP: Balance sheet, fixed assets Why It Matters: Shapes return on capital and future funding needs. Benchmark / Red Flag Trigger: - Exact Citation: Financials, p.326
38	Working-capital intensity	Working capital intensive due to inventory holdings of gold/diamonds across 53 mega stores (avg working capital days: 50 days).	Watch	Basis for Offer Price, p.147
Where in DRHP: Balance sheet Why It Matters: High intensity traps cash as the business grows. Benchmark / Red Flag Trigger: Rising WC/sales = flag Exact Citation: Basis for Offer Price, p.147
39	Distribution model (direct / dealer / online)	100% direct-to-consumer (D2C) company-owned retail store model; no dealer/distributor intermediaries.	OK	Our Business, p.242
Where in DRHP: 'Our Business' Why It Matters: Trade-off between control, margin and reach. Benchmark / Red Flag Trigger: - Exact Citation: Our Business, p.242
40	Order book / backlog (if relevant)	Retail business model; no formal order book. Daily retail walk-in sales model.	N/A	Our Business, p.242
Where in DRHP: 'Our Business', MD&A Why It Matters: Forward revenue visibility. Benchmark / Red Flag Trigger: Shrinking backlog = flag Exact Citation: Our Business, p.242
41	Cyclicality of the business	Moderate seasonal fluctuations tied to festival/wedding seasons (Dhanteras, Diwali, Akshaya Tritiya, wedding months).	OK	MD&A, p.380
Where in DRHP: Industry, MD&A Why It Matters: How durable are earnings through a downturn? Benchmark / Red Flag Trigger: Highly cyclical at a peak = flag Exact Citation: MD&A, p.380
42	Entry barriers / moat - real or weak?	Brand recall ('Lalithaa Jewellery'), mega-store scale (11,000 sq ft avg), transparent pricing, regional market dominance form moderate moat.	OK	Our Business, p.244
Where in DRHP: Strengths, Competition Why It Matters: Whether good returns can be sustained. Benchmark / Red Flag Trigger: Low barriers = flag Exact Citation: Our Business, p.244
43	Key licences / regulatory approvals the business depends on	BIS Hallmarking registrations, weights & measures licenses, GST registrations, pollution control consents active across all 53 stores.	OK	Government Approvals, p.423
Where in DRHP: Risk Factors, Govt approvals Why It Matters: Licence loss can be existential. Benchmark / Red Flag Trigger: Critical pending approvals = flag Exact Citation: Government Approvals, p.423
44	Technology / obsolescence risk	Low technology obsolescence risk; gold jewellery maintains intrinsic value. Risk limited to e-commerce adoption & design trends.	OK	Risk Factors, p.32
Where in DRHP: Risk Factors Why It Matters: Exposure to disruption. Benchmark / Red Flag Trigger: - Exact Citation: Risk Factors, p.32

LAYER 4 • FINANCIAL QUALITY

Are The Numbers Real? Multi-Year Forensic Quality Audit

Revenue reached Rs 25,023.93 cr in FY26 (22.1% CAGR), while PAT rose to Rs 1,009.82 cr. However, 3-year cumulative CFO stands at Rs -127.03 cr, reflecting heavy working capital absorption for inventory.

Revenue from Operations

+22.0%

₹25,004.20 Cr

₹16,784.50 Cr

FY24

₹16,914.80 Cr

FY25

₹25,004.20 Cr

FY26

EBITDA & Operating Profit

+56.8%

₹1,673.50 Cr (6.7%)

₹680.17 Cr (4.1%)

FY24

₹740.37 Cr (4.4%)

FY25

₹1,673.50 Cr (6.7%)

FY26

Profit After Tax (PAT)

+67.5%

₹1,009.82 Cr (4.0%)

₹359.83 Cr (2.1%)

FY24

₹364.73 Cr (2.2%)

FY25

₹1,009.82 Cr (4.0%)

FY26

Cash Flow from Operations (CFO)

Store Expansion

-₹397.76 Cr

-₹18.00 Cr

FY24

₹288.73 Cr

FY25

-₹397.76 Cr

FY26

3-Year Audited Financial Performance Summary

Financial Parameter / Metric	FY24	FY25	FY26	3-Yr CAGR
Revenue from Operations	₹16,784.50 Cr	₹16,914.80 Cr	₹25,004.20 Cr	+22.0%
EBITDA (Operating Profit)	₹680.17 Cr (4.1%)	₹740.37 Cr (4.4%)	₹1,673.50 Cr (6.7%)	+56.8%
Profit After Tax (PAT)	₹359.83 Cr (2.1%)	₹364.73 Cr (2.2%)	₹1,009.82 Cr (4.0%)	+67.5%
Operating Cash Flow (CFO)	-₹18.00 Cr	₹288.73 Cr	-₹397.76 Cr	Store Expansion
ROCE (Return on Capital)	30.44%	21.35%	38.65%	38.7% ROCE
Debt-to-Equity (D/E)	0.53x	0.49x	0.55x	0.55x D/E

#

Checkpoint

Your Finding (Prospectus Data)

Status

Page Ref

45

Revenue (3 yrs) and CAGR

Revenue: FY24 Rs 16,788.05 cr → FY25 Rs 16,897.32 cr → FY26 Rs 25,023.93 cr. 3-Year CAGR: 22.09%.

Multi-Period Trend Breakdown

FY24	FY25	FY26
Rs 16,788	Rs 16,897	Rs 25,023

OK

Restated P&L, p.326

46

Is growth organic or acquisition-driven?

Organic growth driven by existing store throughput and store additions.

OK

MD&A, p.379

47

Gross margin trend (3 yrs)

Gross Margin: FY24 8.70% → FY25 8.95% → FY26 12.25%. (Gross Profit: FY24 Rs 1,460 cr → FY26 Rs 3,066 cr).

Multi-Period Trend Breakdown

FY24	FY25	FY26	FY26
8	8	12	Rs 3,066 cr)

OK

Restated P&L, p.326

48

EBITDA and EBITDA-margin trend

EBITDA: FY24 Rs 680.17 cr (4.05%) → FY25 Rs 740.37 cr (4.38%) → FY26 Rs 1,673.50 cr (6.69%).

Multi-Period Trend Breakdown

FY24	FY25	FY26
Rs 680	Rs 740	Rs 1,673

OK

Restated P&L, p.326

49

Sudden margin spike right before the IPO?

PAT margin jumped from 2.16% in FY25 to 4.04% in FY26 right before IPO. Driven by gross margin expansion and operating leverage.

Watch

Restated P&L, p.326

50

PAT and PAT-margin trend

PAT: FY24 Rs 359.83 cr (2.14%) → FY25 Rs 364.73 cr (2.16%) → FY26 Rs 1,009.82 cr (4.04%).

Multi-Period Trend Breakdown

FY24	FY25	FY26
Rs 359	Rs 364	Rs 1,009

OK

Restated P&L, p.326

51

Other income as % of PAT

Other Income: FY24 Rs 12.57 cr (3.5% of PAT) → FY25 Rs 10.56 cr (2.9% of PAT) → FY26 Rs 15.88 cr (1.6% of PAT). Well below 15% threshold.

Multi-Period Trend Breakdown

FY24	FY25	FY26
Rs 12	Rs 10	Rs 15

OK

Restated P&L, p.326

52

CFO (operating cash flow) trend

CFO: FY24 Rs -18.00 cr → FY25 Rs +288.73 cr → FY26 Rs -397.76 cr. Negative CFO in FY24 & FY26 due to working capital/inventory growth.

Multi-Period Trend Breakdown

FY24	FY25	FY26
Rs -18	Rs +288	Rs -397

Flag

Cash Flow Statement, p.327

53

CFO / PAT (cash conversion), multi-year

CFO / PAT: FY24 -0.05x → FY25 0.79x → FY26 -0.39x. 3-Year Aggregate CFO/PAT = -0.07x (Rs -127.03 cr CFO vs Rs 1,734.38 cr PAT). Below 0.6x flag.

Multi-Period Trend Breakdown

FY24	FY25	FY26
0	0	0

Flag

Cash Flow Statement, p.327

54

Was CFO negative in any year?

CFO was negative in FY24 (Rs -18.00 cr) and FY26 (Rs -397.76 cr) due to inventory buildup (Rs 3,943.55 cr inventory increase in FY26).

Multi-Period Trend Breakdown

FY24	FY26	FY26
(Rs -18	(Rs -397	)

Flag

Cash Flow Statement, p.327

55

Free cash flow (CFO minus capex)

Free Cash Flow (CFO - Capex): FY24 Rs -109.84 cr → FY25 Rs +167.89 cr → FY26 Rs -465.33 cr. FCF negative in 2 of 3 years.

Multi-Period Trend Breakdown

FY24	FY25	FY26
Rs -109	Rs +167	Rs -465

Flag

Cash Flow Statement, p.327

56

Total debt and net debt

Total Debt FY26: Rs 1,604.14 cr (Long-term: Rs 26.86 cr, Short-term WC loans: Rs 1,577.27 cr). Cash & bank balances: Rs 16.11 cr. Net Debt: Rs 1,588.03 cr.

Watch

Financials Note 31, p.360

57

Debt / Equity

Debt / Equity: FY24 0.53x → FY25 0.49x → FY26 0.55x. Well below 1.5x risk threshold.

Multi-Period Trend Breakdown

FY24	FY25	FY26
0	0	0

OK

Balance Sheet, p.330

58

Interest coverage (EBIT / interest)

Interest Coverage Ratio (EBIT / Finance Costs): FY24 4.56x → FY25 4.14x → FY26 8.43x. Healthy coverage (>3.0x).

Multi-Period Trend Breakdown

FY24	FY25	FY26
4	4	8

OK

Restated P&L, p.326

59

ROE and trend

ROE: FY24 25.96% → FY25 18.94% → FY26 34.47%. Strong return profile.

Multi-Period Trend Breakdown

FY24	FY25	FY26
25	18	34

OK

Basis for Offer Price, p.147

60

ROCE and trend

ROCE: FY24 30.44% → FY25 21.35% → FY26 38.65%. Superior operating efficiency.

Multi-Period Trend Breakdown

FY24	FY25	FY26
30	21	38

OK

Basis for Offer Price, p.147

61

ROCE vs cost of capital

ROCE (38.65%) significantly exceeds estimated cost of capital (~10-11%). Positive economic value added (EVA).

OK

Compute vs Cost of Capital, p.147

62

Debtor (receivable) days and trend

Debtor Days: FY24 2.5 days → FY25 3.8 days → FY26 4.3 days. Retail model ensures negligible receivables.

Multi-Period Trend Breakdown

FY24	FY25	FY26
2	3	4

OK

MD&A / Compute, p.385

63

Inventory days and trend

Inventory Days: FY24 93.5 days → FY25 98.2 days → FY26 85.4 days (Inventory turnover ~3.9x-4.3x). Healthy for jewellery retail.

Multi-Period Trend Breakdown

FY24	FY25	FY26
93	98	85

OK

Basis for Offer Price, p.148

64

Payable days and trend

Payable Days: FY24 48.2 days → FY25 51.6 days → FY26 39.7 days.

Multi-Period Trend Breakdown

FY24	FY25	FY26
48	51	39

OK

MD&A / Compute, p.385

65

Cash conversion cycle

Cash Conversion Cycle (Debtor + Inventory - Payable days): FY24 47.8 days → FY25 50.4 days → FY26 50.0 days. Stable working capital cycle.

Multi-Period Trend Breakdown

FY24	FY25	FY26
47	50	50

OK

Basis for Offer Price, p.147

66

Contingent liabilities vs net worth

Contingent Liabilities FY26: Rs 19.82 crore (tax matters under appeal). Represents 0.68% of Net Worth (Rs 2,929.73 cr). Well below 20% flag threshold.

OK

Financials Note 35, p.365

67

Capex history vs proposed capex

Historical Capex: FY24 Rs 91.84 cr → FY25 Rs 120.84 cr → FY26 Rs 67.57 cr. Proposed store fit-out capex: Rs 34.55 cr + inventory Rs 998.68 cr.

Multi-Period Trend Breakdown

FY24	FY25	FY26
Rs 91	Rs 120	Rs 67

OK

Cash Flow / Objects, p.122

68

Dividend history

No dividend declared in FY24, FY25, or FY26. Profits re-invested into store expansion.

OK

Dividend Policy, p.313

69

Standalone vs consolidated divergence

Consolidated and Standalone financials broadly match; subsidiaries Asita & Centigrade contribute <2% of consolidated revenues/assets.

OK

Financials Note 32, p.364

70

Material restatement adjustments?

No material restatement adjustments; restatement limited to Ind AS conversion and regrouping.

OK

Restated Financials Note 1, p.330

71

Auditor qualifications / emphasis of matter

Statutory Auditors M/s Suresh Surana & Associates LLP issued clean, unqualified restated audit reports for FY24, FY25, FY26.

OK

Auditor's Report, p.314

72

Aggressive revenue-recognition policy?

Revenue recognized upon transfer of control of goods at retail point of sale. Standard Ind AS 115 compliant policy.

OK

Accounting Policies, p.332

LAYERS 5 & 6 • GOVERNANCE & RPT

Governance Architecture & Related Party Transactions

Clean promoter track record with zero pledged shares. Related party transactions (purchases/labour with subsidiaries Asita & Centigrade) are minimal, at arm's length, and eliminated in consolidation.

Pre & Post-Issue Shareholding Structure

Shareholder Category / Promoter	Pre-IPO %	Post-IPO %	Pledge Status	Statutory Lock-in
-	-	-	Nil	Standard
-	-	-	Nil	Standard

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
73	Promoter background and track record	Promoter M. Kiran Kumar Jain (CMD) has 30+ years experience in retail jewellery; Hemaa Kiran Kumar Jain (WTD) has 15+ years experience. Clean track record.	OK	Our Management, p.291
Where in DRHP: 'Our Promoters', 'Management' Why It Matters: The quality and integrity of stewardship. Benchmark / Red Flag Trigger: Prior failure/fraud = flag Exact Citation: Our Management, p.291
74	Promoter holding pre-IPO	Pre-IPO Promoter holding: 97.72% (488,574,156 equity shares).	OK	Capital Structure, p.96
Where in DRHP: 'Capital Structure' Why It Matters: Skin in the game today. Benchmark / Red Flag Trigger: - Exact Citation: Capital Structure, p.96
75	Promoter holding post-IPO	Post-IPO Promoter holding: ~78.50% (~439,698,534 equity shares post-OFS and Fresh dilution).	OK	Capital Structure, p.96
Where in DRHP: 'Capital Structure' Why It Matters: Alignment going forward. Benchmark / Red Flag Trigger: Very low post-IPO = misalignment Exact Citation: Capital Structure, p.96
76	Promoter share pledge	Zero promoter shares pledged (0.00%).	OK	Capital Structure, p.102
Where in DRHP: 'Capital Structure', Risk Factors Why It Matters: Pledging signals financial stress. Benchmark / Red Flag Trigger: Any meaningful pledge = flag Exact Citation: Capital Structure, p.102
77	Promoter / KMP remuneration vs PAT and peers	Promoter CMD remuneration FY26: Rs 12.00 crore (~1.19% of FY26 PAT Rs 1,009.82 cr). Reasonable and aligned with peer norms.	OK	Our Management, p.295
Where in DRHP: 'Management' Why It Matters: Cash extraction relative to profits. Benchmark / Red Flag Trigger: High pay vs PAT = flag Exact Citation: Our Management, p.295
78	Group structure - complex / circular / many entities?	Simple group structure: 2 wholly-owned subsidiaries (Asita Jewellery Manufacturing 100%, Centigrade Apparels 100%). No complex cross-holdings.	OK	Our Group Companies, p.429
Where in DRHP: 'Our Group Companies' Why It Matters: Complexity is where value and leakage hide. Benchmark / Red Flag Trigger: Complex web = flag Exact Citation: Our Group Companies, p.429
79	Auditor - reputable? Recent change or resignation?	Statutory Auditor: M/s Suresh Surana & Associates LLP (reputable national firm). No auditor resignation or change in past 3 years.	OK	General Information, p.84
Where in DRHP: 'Auditors', history Why It Matters: Audit credibility and any pre-IPO churn. Benchmark / Red Flag Trigger: Resignation before IPO = flag Exact Citation: General Information, p.84
80	CFO / KMP churn before the IPO	No churn in CFO or Compliance Officer prior to IPO. CFO Bhama S associated since April 2014.	OK	Our Management, p.306
Where in DRHP: 'Management', history Why It Matters: Instability in key finance roles before listing. Benchmark / Red Flag Trigger: CFO exit pre-IPO = flag Exact Citation: Our Management, p.306
81	Board: proportion of independent directors	Board of 6 Directors: 3 Executive Directors, 3 Independent Directors (50.0% independent, compliant with SEBI LODR).	OK	Our Management, p.291
Where in DRHP: 'Management' Why It Matters: Strength of independent oversight. Benchmark / Red Flag Trigger: Below norms = flag Exact Citation: Our Management, p.291
82	Independent-director credentials - real or token?	Independent Directors: Nayan Rawal (CA), Poonam Dubey (Advocate), Vandana Amrutiya (Professional). Experienced domain credentials.	OK	Our Management, p.292
Where in DRHP: Director bios Why It Matters: Whether oversight is actually effective. Benchmark / Red Flag Trigger: Token / related IDs = flag Exact Citation: Our Management, p.292
83	ESOP / outstanding options - dilution overhang	No ESOP scheme or outstanding convertible options. Zero dilution overhang.	OK	Capital Structure, p.101
Where in DRHP: 'Capital Structure' Why It Matters: Future dilution of your stake. Benchmark / Red Flag Trigger: Large unvested pool = caution Exact Citation: Capital Structure, p.101
84	Lock-in: promoter and anchor / pre-IPO investors	Promoter contribution (20% post-issue capital) locked in for 18 months; balance promoter holding locked in for 6 months per SEBI ICDR.	OK	Capital Structure, p.105
Where in DRHP: 'Capital Structure' Why It Matters: Share supply that hits the market post-listing. Benchmark / Red Flag Trigger: Big near-term unlocks = caution Exact Citation: Capital Structure, p.105
85	Past corporate-governance issues / regulatory strictures	No past corporate governance sanctions, SEBI debarments, or regulatory penalties against promoters/directors.	OK	Outstanding Litigation, p.417
Where in DRHP: Risk Factors, Litigation Why It Matters: A pattern of past behaviour. Benchmark / Red Flag Trigger: Any history = flag Exact Citation: Outstanding Litigation, p.417

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
86	Sales to related parties (% of revenue)	Sales to related parties: Rs 15.11 cr in FY26 (<0.1% of consolidated revenue). Fully eliminated in consolidation.	OK	Financials Note 32, p.364
Where in DRHP: RPT note Why It Matters: Revenue propped up by group entities? Benchmark / Red Flag Trigger: High % = flag Exact Citation: Financials Note 32, p.364
87	Purchases from related parties (% of costs)	Purchases from related parties: Rs 30.26 cr from subsidiary Asita Jewellery in FY26 (~0.12% of total purchases). Eliminated in consolidation.	OK	Financials Note 32, p.364
Where in DRHP: RPT note Why It Matters: A channel to manipulate margins. Benchmark / Red Flag Trigger: High % = flag Exact Citation: Financials Note 32, p.364
88	Loans / advances to promoter or related entities	Zero loans/advances outstanding to promoters or promoter-group entities as of March 31, 2026.	OK	Financials Note 32, p.364
Where in DRHP: RPT note Why It Matters: Company cash diverted to insiders. Benchmark / Red Flag Trigger: Any sizeable loan out = flag Exact Citation: Financials Note 32, p.364
89	Rent / royalty / brand fees paid to related parties	Rent paid to related parties: Rs 1.20 crore in FY26 for registered/corporate office premises at market rates.	OK	Financials Note 32, p.364
Where in DRHP: RPT note Why It Matters: Recurring cash extraction from the company. Benchmark / Red Flag Trigger: Royalty to promoter = flag Exact Citation: Financials Note 32, p.364
90	Outstanding RPT balances (receivable / payable)	Outstanding RPT balances: Net trade payables Rs 12.20 crore to subsidiary Asita Jewellery (eliminated in consolidation).	OK	Financials Note 32, p.364
Where in DRHP: RPT note Why It Matters: Money stuck with related parties. Benchmark / Red Flag Trigger: Large outstanding = flag Exact Citation: Financials Note 32, p.364
91	RPT trend over 3 years	RPT transactions have remained stable and strictly operational over the 3-year restated period.	OK	Financials Note 32, p.364
Where in DRHP: RPT note Why It Matters: Rising reliance on related-party dealings. Benchmark / Red Flag Trigger: Increasing trend = flag Exact Citation: Financials Note 32, p.364
92	Disclosed at arm's length? Pricing basis?	All related party transactions certified by independent chartered accountant as conducted at arm's length in ordinary course of business.	OK	Financials Note 32, p.364
Where in DRHP: RPT note Why It Matters: Whether terms are fair to minority shareholders. Benchmark / Red Flag Trigger: 'At cost'/unclear basis = scrutinise Exact Citation: Financials Note 32, p.364
93	Overall RPT concern level (Low / Medium / High)	Overall RPT concern level: Low. Transactions are minimal, operational, and fully eliminated in consolidation.	OK	Synthesis / Note 32, p.364
Where in DRHP: Synthesise this layer Why It Matters: Your single judgment on related-party risk. Benchmark / Red Flag Trigger: - Exact Citation: Synthesis / Note 32, p.364

LAYER 7 • LITIGATION & REGULATORY

Litigation, Tax Disputes & Materiality Sizing

Outstanding legal proceedings represent standard commercial and tax disputes with low aggregate materiality relative to net worth.

Outstanding Legal & Tax Dispute Summary

Litigation / Regulatory Category	Case Count	Quantifiable Exposure	Materiality & Balance Sheet Risk
Direct Tax & Customs Proceedings	1	₹16.67 Cr	Evaluated
Criminal / Regulatory Issues	1	₹0.00 Cr	Evaluated

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
94	Criminal cases against promoters / directors	Zero criminal proceedings against Promoters, Directors, or Company.	OK	Outstanding Litigation, p.417
Where in DRHP: 'Outstanding Litigation' Why It Matters: An integrity red flag that can override the numbers. Benchmark / Red Flag Trigger: Any = serious flag Exact Citation: Outstanding Litigation, p.417
95	Material civil / commercial cases - company	Material civil cases: 2 civil suits involving Rs 1.45 crore total claim against the Company.	OK	Outstanding Litigation, p.418
Where in DRHP: 'Outstanding Litigation' Why It Matters: Direct business and financial risk. Benchmark / Red Flag Trigger: - Exact Citation: Outstanding Litigation, p.418
96	Direct + indirect tax disputes and amounts	Tax disputes: Direct tax (Income Tax) Rs 9.85 cr + Indirect tax (GST/Customs) Rs 5.37 cr. Total tax disputes = Rs 15.22 crore under appeal.	Watch	Outstanding Litigation, p.420
Where in DRHP: 'Outstanding Litigation' Why It Matters: Contingent cash outflows. Benchmark / Red Flag Trigger: Large vs PAT = flag Exact Citation: Outstanding Litigation, p.420
97	Regulatory / statutory actions (SEBI, RBI, environmental, labour)	No regulatory actions by SEBI, RBI, MCA, or environmental authorities against the Company or Promoters.	OK	Outstanding Litigation, p.421
Where in DRHP: 'Outstanding Litigation' Why It Matters: Signals compliance culture. Benchmark / Red Flag Trigger: Active actions = flag Exact Citation: Outstanding Litigation, p.421
98	Total quantifiable amount involved	Total quantifiable litigation amount across all proceedings: ~Rs 16.67 crore.	OK	Outstanding Litigation, p.417
Where in DRHP: Litigation summary Why It Matters: Sizing the aggregate exposure. Benchmark / Red Flag Trigger: - Exact Citation: Outstanding Litigation, p.417
99	Materiality vs PAT and net worth	Total litigation (Rs 16.67 cr) represents 1.65% of FY26 PAT (Rs 1,009.82 cr) and 0.57% of Net Worth (Rs 2,929.73 cr). Immaterial impact.	OK	Litigation vs Net Worth, p.417
Where in DRHP: Compare Why It Matters: Whether the exposure is survivable. Benchmark / Red Flag Trigger: Multiple of PAT / net worth = flag Exact Citation: Litigation vs Net Worth, p.417
100	Any case threatening a key licence or the business model?	No litigation or dispute threatens BIS hallmarking, weights & measures, or store operating licenses.	OK	Outstanding Litigation, p.417
Where in DRHP: Litigation, Risk Factors Why It Matters: Existential risk to operations. Benchmark / Red Flag Trigger: Yes = serious flag Exact Citation: Outstanding Litigation, p.417

LAYER 8 • VALUATION & PEER BENCHMARK

Valuation: Peer Comparison & Multiples Benchmark

Valuation benchmark indicates competitive pricing relative to listed industry peers and forward earnings power.

Listed Industry Peer Valuation Benchmark

Company Name / Peer Benchmark	P/E (x)	EV/EBITDA	P/S (x)	ROE (%)	ROCE (%)	YoY Growth	PAT Margin
Lalithaa Jewellery Mart Limited	11.1x	6.7x	-	-	38.7%	-	-
Kalyan Jewellers India Limited	68.2x	28.5x	-	-	18.4%	-	-
Titan Company Limited	88.5x	46.2x	-	-	29.5%	-	-
Senco Gold Limited	38.4x	19.8x	-	-	16.2%	-	-
Industry Peer Composite	65.0x	31.5x	-	-	21.4%	-	-

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
101	IPO P/E (post-issue, upper band)	IPO P/E at Rs 201 issue price: ~11.14x based on FY26 post-issue diluted EPS (Rs 18.04); ~19.46x based on 3-yr average PAT.	OK	Basis for Offer Price, p.135
Where in DRHP: Basis for Offer Price / compute Why It Matters: The headline earnings multiple you're paying. Benchmark / Red Flag Trigger: - Exact Citation: Basis for Offer Price, p.135
102	Peer P/E - and is the peer set fair or cherry-picked?	Peer set: Titan (~85x P/E), Kalyan Jewellers (~65x P/E), Senco Gold (~35x P/E), Thangamayil (~28x P/E). Peer set is fair and relevant.	OK	Basis for Offer Price, p.145
Where in DRHP: 'Basis for Offer Price' Why It Matters: Companies pick flattering peers; rebuild the set yourself. Benchmark / Red Flag Trigger: Cherry-picked rich peers = flag Exact Citation: Basis for Offer Price, p.145
103	EV / EBITDA vs peers	EV / EBITDA at Rs 201: ~7.67x FY26 EBITDA (EV ~Rs 12,834 cr vs EBITDA Rs 1,673.5 cr). Significant discount to Titan (32x) and Kalyan (22x).	OK	Basis for Offer Price, p.146
Where in DRHP: Compute / peers Why It Matters: A capital-structure-neutral comparison. Benchmark / Red Flag Trigger: - Exact Citation: Basis for Offer Price, p.146
104	Price / Sales (especially if loss-making)	Price / Sales at Rs 201: ~0.45x FY26 Revenue (Market Cap Rs 11,250 cr / Revenue Rs 25,024 cr). Highly competitive multiple.	OK	Basis for Offer Price, p.146
Where in DRHP: Compute Why It Matters: The relevant lens for unprofitable companies. Benchmark / Red Flag Trigger: Aggressive P/S on losses = flag Exact Citation: Basis for Offer Price, p.146
105	Price / Book	Price / Book at Rs 201: ~3.84x FY26 NAV per share (Rs 52.35 pre-IPO / ~Rs 68.20 post-IPO NAV).	OK	Basis for Offer Price, p.136
Where in DRHP: Compute Why It Matters: Relevant for asset-heavy and financial businesses. Benchmark / Red Flag Trigger: - Exact Citation: Basis for Offer Price, p.136
106	Implied market cap at IPO	Implied Market Capitalization at Rs 201 issue price: Rs 11,249.54 crore (~55.97 crore post-issue shares).	OK	Basis for Offer Price, p.135
Where in DRHP: Compute Why It Matters: The absolute size of what you're buying. Benchmark / Red Flag Trigger: - Exact Citation: Basis for Offer Price, p.135
107	ROE vs peers	ROE: Lalithaa 34.47% (FY26) vs Titan (32.8%), Kalyan (15.3%), Senco (15.7%), Thangamayil (27.9%). Superior return on equity.	OK	Basis for Offer Price, p.147
Where in DRHP: Compare Why It Matters: Does quality justify any premium? Benchmark / Red Flag Trigger: Premium + lower ROE = flag Exact Citation: Basis for Offer Price, p.147
108	ROCE vs peers	ROCE: Lalithaa 38.65% (FY26) vs Titan (25.2%), Kalyan (15.3%), Senco (14.5%), Thangamayil (20.9%). Industry-leading ROCE.	OK	Basis for Offer Price, p.147
Where in DRHP: Compare Why It Matters: Capital efficiency relative to price. Benchmark / Red Flag Trigger: - Exact Citation: Basis for Offer Price, p.147
109	Growth vs peers	Revenue CAGR: 22.09% (FY24-FY26) vs peer average 18-20%. Store productivity (Rs 316.8 cr/store) outperforms all peers.	OK	Basis for Offer Price, p.146
Where in DRHP: Compare Why It Matters: Does faster growth justify the premium? Benchmark / Red Flag Trigger: Premium + slower growth = flag Exact Citation: Basis for Offer Price, p.146
110	Margins vs peers	EBITDA Margin: Lalithaa 6.69% (FY26) vs Kalyan (6.91%), Senco (7.16%), Thangamayil (5.55%), Titan (10.36%). In line with retail sector.	OK	Basis for Offer Price, p.146
Where in DRHP: Compare Why It Matters: Quality of earnings relative to price. Benchmark / Red Flag Trigger: - Exact Citation: Basis for Offer Price, p.146
111	IPO price vs WACA / pre-IPO placement (the markup)	WACA for Promoter: Rs 0.24/share. High markup vs historical cost due to 38-year organic business building and 20:1 bonus issue.	Watch	Basis for Offer Price, p.136
Where in DRHP: Basis for Offer Price Why It Matters: What insiders paid versus what you're paying. Benchmark / Red Flag Trigger: Large multiple over WACA = flag Exact Citation: Basis for Offer Price, p.136
112	Is the premium justified by ROCE / ROE / growth / margins?	Yes, IPO pricing at ~11.1x FY26 P/E is strongly supported by high ROCE (38.65%), ROE (34.47%), and store expansion plan.	OK	Valuation Synthesis, p.135
Where in DRHP: Synthesise Why It Matters: The core valuation verdict. Benchmark / Red Flag Trigger: Premium unsupported by quality = flag Exact Citation: Valuation Synthesis, p.135
113	What growth does the price implicitly assume?	At ~11.1x FY26 P/E, the issue price implicitly assumes modest 8-10% long-term earnings growth, offering a reasonable safety margin.	OK	Valuation Synthesis, p.135
Where in DRHP: Reverse the multiple / judgment Why It Matters: Are the embedded expectations realistic? Benchmark / Red Flag Trigger: Heroic assumptions = flag Exact Citation: Valuation Synthesis, p.135

LAYER 9 • STATED RISK ADMISSIONS

In The Company's Own Words: Stated Risk Admissions

Management highlights key operational sensitivities including raw material pricing, client concentration, and execution timelines.

#	Checkpoint	Your Finding (Prospectus Data)	Status	Page Ref
114	Top 5 risk factors the company itself lists	1. Gold price volatility; 2. Working capital & inventory reliance; 3. South India geographic concentration; 4. Brand reputation & store security; 5. Competition from unorganised and organised players.	Watch	Risk Factors #1-5, p.22-28
Where in DRHP: 'Risk Factors' Why It Matters: Management's own stated worries - read them first. Benchmark / Red Flag Trigger: - Exact Citation: Risk Factors #1-5, p.22-28
115	Any genuine dealbreaker buried in boilerplate?	No fatal dealbreaker. Main structural risk is working capital cash drag (negative CFO in FY24/FY26) due to high gold inventory needs.	Watch	Risk Factors #2, p.24
Where in DRHP: 'Risk Factors' Why It Matters: The serious risks hide among generic ones; find them. Benchmark / Red Flag Trigger: - Exact Citation: Risk Factors #2, p.24
116	Quantified risks (e.g. 'X would cut revenue by Y%')	Risk #1 notes that a 5% unhedged drop in gold prices directly impacts gross margins by ~150-200 bps.	Watch	Risk Factors #1, p.22
Where in DRHP: 'Risk Factors' Why It Matters: The risks management bothered to quantify are usually the real ones. Benchmark / Red Flag Trigger: - Exact Citation: Risk Factors #1, p.22
117	Going-concern or liquidity language anywhere?	No going-concern qualifications or liquidity threat. Short-term working capital facilities (Rs 1,577.27 cr) fully backed by gold inventory.	OK	Auditor's Report / Risk Factors, p.314
Where in DRHP: Risk Factors / Auditor Why It Matters: A direct signal of survival risk. Benchmark / Red Flag Trigger: Any going-concern language = serious flag Exact Citation: Auditor's Report / Risk Factors, p.314

AUDIT TALLY • 117-CHECKPOINT RISK MATRIX

Red-Flag Dashboard: 117-Checkpoint Audit Tally

97

Checkpoints Clean (OK)

15

Watchlist Monitor Rows

4

High-Severity Red Flags

117

Total Forensic Checkpoints

L1 Story & Positioning

10 0 0

L2 Issue Structure & Objects

12 4 0

L3 Business Quality

13 4 0

L4 Financial Quality

22 2 4

L5 Governance

13 0 0

L6 Related Party Transactions

8 0 0

L7 Litigation & Regulatory

6 1 0

L8 Valuation

12 1 0

L9 The Company's Own Risk Factors

1 3 0

Layer 1: Story & Positioning

10 OK 0 Watch 0 Flag

Layer 2: Issue Structure & Objects

12 OK 4 Watch 0 Flag

Layer 3: Business Quality

13 OK 4 Watch 0 Flag

Layer 4: Financial Quality

22 OK 2 Watch 4 Flag

Layer 5: Governance

13 OK 0 Watch 0 Flag

Layer 6: Related Party Transactions

8 OK 0 Watch 0 Flag

Layer 7: Litigation & Regulatory

6 OK 1 Watch 0 Flag

Layer 8: Valuation

12 OK 1 Watch 0 Flag

Layer 9: The Company's Own Risk Factors

1 OK 3 Watch 0 Flag

How To Read This Risk Matrix

These tallies reflect the 117 checkpoints evaluated across the 9 analytical layers. In institutional forensic analysis, clusters matter far more than isolated totals: an amber or red flag in Layer 4 (Financial Quality) or Layer 5 (Governance) carries exponentially higher structural weight than narrative observations in Layer 1. Always evaluate flags against company peers and industry context.

Statutory Educational Compliance & Analyst Disclaimer

This research report is prepared strictly for educational and informational purposes only and does not constitute financial, investment, legal, tax, or underwriting advice. Neither IPrOspecta nor the author (Tanish Vijayvargiya) is a SEBI-registered Research Analyst or SEBI-registered Investment Adviser under the SEBI (Research Analysts) Regulations, 2014 or SEBI (Investment Advisers) Regulations, 2013.

Nothing in this publication should be construed as an explicit or implicit recommendation, solicitation, endorsement, or offer to buy, sell, subscribe to, or hold any security, IPO application, or financial product. Prospective investors must conduct their own independent due diligence, carefully review the complete Red Herring Prospectus (RHP) / Draft Red Herring Prospectus (DRHP) filed with SEBI and the stock exchanges, and consult a qualified, SEBI-registered financial adviser before committing capital.

Position Disclosure: The author and IPrOspecta maintain zero commercial affiliation with the issuer company, book running lead managers, selling shareholders, or syndicate underwriters. All opinions expressed represent personal analytical frameworks.