Sep 30, 2017

Lypsa Gems and Jwellery - Diomand trading, cutting and polishing

Lypsa Gems and Jewelery is involved in business of Diamond. Here is short intro from Google Finance.

Lypsa Gems & Jewellery Limited is an India-based company, which is engaged in the trading and working in diamonds. The Company is also engaged in the import, export, making and polishing activities of diamonds, gems and other precious stones. The Company has three activities, including rough preparation, manufacturing and polished diamonds marketing.
Lypsa started focusing on margin instead of Revenue. It has improved its margin and due to that profit has increased. It has inconsistent revenue growth which is risky.

It is a small company with MCap of Rs 140 Cr and Reserve of Rs 51 Cr.
PE wise it is at good valuation. PE = 6

CMP: Rs 47

Return ratios are good earlier too. Currently,
RoCE = 24,
RoE = 30,

D/E = 0.45

More from a Research Report. Link at bottom.
Lypsa are in plans to open a chain of retail stores and kiosks, with an initial plan to start with a single store and 5 kiosks and eventually expanding it to 5 stores and 25 kiosks by 2020 in phased manner. The cost of these plans is estimated at Rs 10 crs which will be spent in a phased manner.

Lypsa has also recently tied up with - an e-commerce platform of Gitanjali group for selling its affordable diamond jewellery brand „Lypsa Atelier‟ in the price range of Rs. 7,500 – Rs. 35,000. Lypsa Atelier products continue being sold on,, and

Recent Developments –
Design Focus
• Lypsa DMCC launched new diamond studded jewelry collection
• Collection comprises over 100 designs and offers customization option to clients
• Focus on Middle East Market,
• Blend of contemporary design elements with Middle Eastern Design Motifs

New Orders
• Bagged new orders from UAE based customers
• To supply loose diamonds and diamond- studded jewelry worth Rs. 16 crs Jewelry to be set in 18kt gold and VS-SI diamonds

Research Report by Joindre Capital

More on Moneycontrol - Worst is over for Diamond Indystry - Lypsa Gems