Yaashvi Jewellers IPO

Yaashvi Jewellers Ltd. (YJL) is hitting the market with a Rs. 43.88 crore IPO to expand its machine-made gold chain business and clean up its balance sheet. While they’ve shown impressive top-line growth, reaching Rs. 449.74 crore in FY26, the sudden jump in profit margins from 0.98% in FY24 to over 4% by FY26 feels suspiciously inflated for such a hyper-competitive, low-margin jewellery trade. Despite their decent RoCE and a P/E of 8.02, investors should be wary; the jewellery market is notoriously cutthroat, and maintaining these peak margins long-term will be a massive uphill battle. Their peer comparison feels more like a convenient distraction than a real benchmark, and the merchant banker’s track record is decidedly mediocre. With no dividend history and an IPO process costing a hefty Rs. 4.84 crore, the stock looks fully priced. Ultimately, this feels like an aggressive valuation based on potentially unsustainable earnings.