LALITHAA MAKES STRONG MARKET DEBUT, LISTS AT OVER PREMIUM

Shares of Lalithaa Jewellery Mart made a strong debut on the stock exchanges on Monday, listing at a premium of more than 31% over the issue price. The company’s initial public offering received overwhelming investor demand, with the issue subscribed 62.97 times during the bidding period from August 17 to 19. On the National Stock Exchange, Lalithaa Jewellery shares were listed at Rs 265, representing a 31.84% premium over the IPO price of Rs 201. The Rs 1,700-crore public issue was offered in the price band of Rs 190–201 per share. The stock’s debut, however, was slightly below expectations in the grey market, where it had indicated a potential listing gain of around 37%. From a valuation perspective, Lalithaa Jewellery remains attractively priced compared with organised jewellery peers such as Kalyan Jewellers and Titan. The company’s return on equity (ROE) of more than 41% also points to strong capital efficiency. However, investors should remain mindful of key risks. The business is inventory-intensive, while operating cash flow was negative at around Rs 397.7 crore in FY26. In addition, a GST dispute involving approximately Rs 1,066 crore and concerns related to the promoters remain important risk factors. Given the sharp listing gains, investors should avoid chasing the stock at elevated levels. The outlook remains positive but cautious. Existing investors can hold the stock with a closing-basis stop loss of Rs 245, while fresh investors may consider waiting for a meaningful correction before taking a position.