Priority Jewels Ltd

Priority Jewels manufactures lightweight studded jewellery and sells it to jewellery chains and independent jewellers (B2B). Revenue fluctuates with input prices and the underlying business has grown very little, with production volume down 21.0% from FY24 to FY26. The two key inputs have moved against each other, with domestic gold prices rising 44% while small polished diamonds falling 20% to 26% in 2025. A significant portion (39%) of revenue is not manufacturing at all but resale of loose diamonds and stones with no processing. Domestic revenue was flat in FY26 and the whole of the year's growth came from exports. Customers are quality names but bargaining power sits with them, the largest account fell from 20.14% of revenue to 10.44% in FY26, and the offer document says little about customer additions. The business is working capital heavy, and ₹75 cr of the ₹91.50 cr raise goes to repaying short-term debt rather than funding growth. The IPO ask of 18.3x P/E does not offer us comfort, and we would rather watch this play out for a few quarters.