Jewellery Stock with Plans for ₹15 Cr Capex and 60% Production Capacity Increase to Watch

Synopsis: Shringar House of Mangalsutra is in focus after announcing a Rs 15 crore capex to expand capacity from 2,500 kg to 4,000 kg annually. The 60% increase, backed by facility relocation and upgraded machinery, aims to support rising demand and drive revenue growth across its nationwide distribution network.

The shares of this company, which is engaged in designing, manufacturing, and marketing a varied range of mangalsutras studded with a diverse range of stones, including but not limited to American diamond, cubic zirconia, pearl, mother of pearl, and semi-precious stones, were in focus after the company announced its capex to meet the high demand and to boost revenue growth.

With a market cap of Rs 2,378 crore, the shares of Shringar House of Mangalsutra Ltd are trading at Rs 247; the shares are trading at a PE of 24.6 compared to its industry PE of 25. The shares have given a return of more than 30% since their listing in September 2025.

Capex

The relocation of Shringar House of Mangalsutra to a bigger facility in Kandivali is more than just a change of address; it is a move driven by capacity-led growth. The company has laid the foundation for growth by increasing its manufacturing area from 8,300 sq. ft. to 16,260 sq. ft. This move is directly in line with the overall strategy of boosting revenue growth.

The key increase in production capacity from 2,500 kg to 4,000 kg per annum is an increase of 60%. This is a substantial boost to the company’s ability to handle the growing demand from its extensive distribution network, which includes corporate, wholesale, and retail clients across India. If the demand continues to be strong, this boost in capacity could lead to higher sales and improved revenue performance.

The Rs 15 crore investment, which has been made from internal accruals, has been used for better machinery and infrastructure. This not only boosts production but could also lead to improved manufacturing efficiency, faster turnaround times, and better product quality, which could boost competitiveness and help stabilise margins alongside revenue growth.

However, the ultimate test of whether this 2,500 kg to 4,000 kg increase will translate into revenue growth will be a function of demand absorption and execution. The fact that commercial production has already been resumed and additional capacity is expected to be added within the next three months suggests that the company is ready from an operational perspective.

Financials

The revenue from operations for the company stood at Rs 659 crores in Q3 FY26 compared to Q3 FY25 revenue of Rs 391 crores, up by about 69 per cent YoY. Similarly, the net profit stood at Rs 30 crore in Q3 FY26, up compared to the Rs 13 crore profit in Q3 FY25.

The company proudly presents a portfolio of more than 15 unique collections and over 10,000 active SKUs, carefully designed to cater to the preferences of a wide customer base. The company’s customer base includes corporate buyers, wholesalers, and retail partners operating across 24 states and 4 union territories in the entire country. 

Some of its key corporate clients include market leaders like Malabar Gold, Titan, Reliance Retail, Novel Jewel, Joyalukkas, PN Gadgil Jewellers, and Damas Jewellery (UAE). As of FY25, the company had 34 corporate clients, 1,089 wholesalers, and 81 retailers. The company has an in-house design team consisting of 22 designers and 179 expert karigars to facilitate smooth execution from design to delivery.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Jewellery Stock with Plans for ₹15 Cr Capex and 60% Production Capacity Increase to Watch appeared first on Trade Brains.