Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>Please refer to the last page of the report on Restrictions
on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or
Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
Refer to Important Disclosures at the end of this report
BUY
Senco Gold
‘Gold’en opportunity – At a bargain; initiate with BUY
Retail Initiating Coverage September 20, 2023
TARGET PRICE (Rs) : 630
Senco Gold: Financial Snapshot (Consolidated)
Y/E Mar (Rs mn)
FY22
FY23
FY24E
FY25E
FY26E
Revenue
35,346
40,774
50,147
59,955
71,240
EBITDA
2,772
3,166
3,522
4,421
5,462
Adj. PAT
1,291
1,585
1,680
2,146
2,718
Adj. EPS (Rs)
19.4
22.9
21.6
27.6
35.0
EBITDA margin (%)
7.8
7.8
7.0
7.4
7.7
EBITDA growth (%)
58.1
14.2
11.2
25.5
23.6
Adj. EPS growth (%)
110.0
18.0
(5.6)
27.8
26.6
RoE (%)
19.4
19.0
14.5
14.6
16.0
RoIC (%)
17.3
15.5
14.2
15.3
16.0
P/E (x)
24.4
20.7
21.9
17.1
13.5
EV/EBITDA (x)
12.9
12.0
11.4
9.3
7.8
P/B (x)
4.3
3.5
2.7
2.3
2.0
FCFF yield (%)
(1.8)
(3.1)
1.1
0.4
1.0
Source: Senco RHP document (historicals), Emkay Research (projections)
Target Price – 12M
Sep-24
Change in TP (%)
NA
Current Reco.
BUY
Previous Reco.
NA
Upside/(Downside) (%)
33.1
CMP (18-Sep-23) (Rs)
473.4
Stock Data
Ticker
52-week High (Rs)
490
52-week Low (Rs)
358
Shares outstanding (mn)
77.7
Market-cap (Rs bn)
37
Market-cap (USD mn)
441
Net-debt, FY24E (Rs mn)
3,284
ADTV-3M (mn shares)
-
ADTV-3M (Rs mn)
-
ADTV-3M (USD mn)
-
Free float (%)
15.0
Nifty-50
20,133
INR/USD
83.3
Shareholding, Jul-23
Promoters (%)
68.5
FPIs/MFs (%)
3.0/8.1
Price Performance
(%)
1M
3M
12M
Absolute
16.3
-
-
Rel. to Nifty
11.5
-
-
1-Year share price trend (Rs)
Devanshu Bansal
devanshu.bansal@emkayglobal.com
+91 22 6612 1385
Bhavika Choudhary
bhavika.choudhary@emkayglobal.com
+91 22 6624 2431
10
18
26
34
42
50
300
340
380
420
460
500
Jul-23 Jul-23 Aug-23Aug-23Aug-23Sep-23Sep-23
%Rs
SENCO IN EQUITY (LHS) Rel to Nifty (RHS)
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This report is intended for [email protected] use and downloaded at 09/21/2023 11:48 AM
Senco Gold (SENCO IN)
India Equity Research | Initiating Coverage
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>.Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research
analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
September 20, 2023 |2
Story in Charts
Exhibit 1: The category (i.e. gold jewelry) has shown resilience, despite a spate of regulatory interventions and the Covid-19 pandemic
FY16
FY23
FY26E
FY36E
FY16-23
FY23-26E
FY26-36E
CAGR (%)
Gold rate (USD/Troy Ounce)
1,160
1,800
2,025
2,721
6.5
4.0
3.0
INR-USD currency
64
79
88
131
3.0
4.0
4.0
Gold rate (INR/10gm)
23,915
45,512
57,587
1,14,560
9.6
8.2
7.1
India Custom Duty (%)
10%
15%
15%
15%
Gold Imports (ton)
857
774
774
774
-1.4
0.0
0.0
Total Imports - Value (Rs trn)
2.3
4.1
5.1
10.2
8.7
8.2
7.1
Gold exchange incremental sales mix (%)
8%
12%
13%
19%
0.5
0.4
0.5
Studded incremental sales mix (%)
4%
8%
11%
17%
0.5
0.9
0.5
Brand/Design incremental sales mix (%)
4%
8%
9%
16%
0.5
0.5
0.6
Total Gold Jewelry consumption (Rs trn)
2.6
5.2
7.0
16.3
10.3
10.1
8.8
Source: World Gold Council (WGC), Emkay Research; Note: The WGC follows calendar-year reporting (FY16 is CY15 and so on, for WGC numbers)
Exhibit 2: Senco leads the pack in the East, given its penetration
being the deepest among peers in the West Bengal market
Source: Store locators (Company websites), Emkay Research
Exhibit 3: The East is a Rs800bn market, with Tanishq/Senco/PC
Chandra commanding dominant shares
Source: Emkay Research, Note: The size of the bubble in the chart
represents the ballpark market share (%) in West Bengal
Exhibit 4: Senco focuses on maintaining superior brand accessibility, via light-weight product offerings, customer engagement, purity and
branding initiatives
Source: Emkay Research (channel checks); Note: Size of the bubble represents the ballpark value share of an article within its category for Senco
85
52
25 25
19
4
2
55
30
16
13
15
2
1
Senco PC
Chandra
Anjali Tanishq MPJ Kalyan Malabar
Number of stores Number of cities, West Bengal
Tanishq
Kalyan
PC
Chandra
Malabar
Senco
MPJ
Anjali
Design Language (bsed on grammage)
Making Charges
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Senco Gold (SENCO IN)
India Equity Research | Initiating Coverage
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analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
September 20, 2023 |3
Exhibit 5: We expect network expansion to accelerate, with 60 new
store additions over FY23-26, on a base of 136 stores
Source: Senco RHP document (historicals), Emkay Research (projections)
Exhibit 6: We expect revenue/EBITDA/PAT CAGR of ~20% over
FY23-26E, largely led by topline growth and stable margins
Source: Senco RHP document (historicals), Emkay Research (projections)
Exhibit 7: We expect the topline CAGR of 20% to be supported by
the 8%/12% SSG/store-addition CAGR, respectively
Source: Senco RHP document (historicals), Emkay Research (projections)
Exhibit 8: We expect ROE to recover to the mid-teens, on margin
recovery and utilization of balance-sheet cash
Source: Senco RHP document (Historicals), Emkay Research (Projections)
Exhibit 9: Senco will require Rs10bn growth capital to open 45 COCO stores over FY23-26; of these, 80% would be serviced by internal
accruals
Source: Senco RHP document (historicals), Emkay Research (projections)
Exhibit 10: Senco currently trades at ~40% discount to Kalyan, despite both having similar
revenue growth prospects
Company (%)
FY23-26E CAGR
FY23
FY26
1-Yr fwd P/E (x)
Revenue
PAT
ROE
(Sep-24E EPS)
TTAN
18.0
18.5
30.9
26.5
74
KALYAN
23.0
31.4
11.9
16.2
33
SENCO
20.4
19.7
16.8
14.9
19
Source: Bloomberg estimates (Kalyan), Emkay Research
136
196
45
15
FY23 Store
Count
COCO additions
(FY23-26)
FOFO additions
(FY23-26)
FY26 Store
Count
19
14
20
20
20
20
0
5
10
15
20
25
Revenue EBITDA PAT
FY20-23 FY23-26E, CAGR (%)
9
10
19
12
8
20
0
5
10
15
20
25
Store
CAGR
SSG
CAGR
Revenue
CAGR
Store
CAGR
SSG
CAGR
Revenue
CAGR
FY20-23 (%)
FY23-26E (%)
13.0
15.6
12.4
13.7
14.5
13.0
13.3
13.6
15.4
16.5
10.2
17.8
16.8
12.2
13.7
14.9
6.3
8.0
5.3
6.7
6.7
6.0
6.3
6.6
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
10
12
14
16
18
20
22
24
FY19 FY20 FY21 FY22 FY23 FY24E FY25E FY26E
Gross (LHS, %) RoE (LHS, %) Pre-IndAS EBITDA (RHS, %)
0.1
0.6
2.7
0.8
7.5
8.7
1.5
0.5
Cash (FY23) Equity Raise (FY24) Debt Raise (FY23-
26)
CFO (before WC
changes)
WC Investments
(FY23-26)
Capex (FY23-26) Dividend (FY23-26) Cash (FY26)
Sources of Funds (Rs bn)
Usage of Funds (Rs bn)
This report is intended for [email protected] use and downloaded at 09/21/2023 11:48 AM
Senco Gold (SENCO IN)
India Equity Research | Initiating Coverage
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analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
September 20, 2023 |4
Table of contents
■ Jewelry Retail: Value appreciation and cultural significance provide natural
tailwinds, offer relatively more resilience .......................................................... 5
■ Differentiated product, improved capital access and first-mover advantage
should help to accelerate growth ....................................................................... 7
Senco’s strength in light-weight offerings makes it the most accessible brand .............. 8
Skewed EBO penetration provides a long growth runway ............................................ 10
Unit Metrics: Increase in Franchisee mix should drive RoE improvement .................. 11
Gold appreciation is a big SSG lever; attractive schemes to help drive faster growth .. 12
Peer Comparison: Strong growth delivery; returns profile matches Kalyan’s ............ 13
Follows hygiene practices for sourcing; stated policy of 50% hedging Gold exposure . 15
Jewelry purchase schemes: Cheaper source of capital ................................................. 16
■ Financials: Accelerated expansion and strong SSG to drive >20% PAT CAGR .... 17
Expect stable working capital on strong plans for non-East expansion ......................... 18
Internal accruals to service 80% of the required growth capital over FY23-26E ........... 18
■ Valuations: Trading at steep discount to peers; Consistent delivery on our
expectations provides scope for re-rating .......................................................... 19
■ Potential upsides and downsides ....................................................................... 20
■ Appendix ........................................................................................................... 21
■ Key Financials ................................................................................................... 23
This report is intended for [email protected] use and downloaded at 09/21/2023 11:48 AM
Senco Gold (SENCO IN)
India Equity Research | Initiating Coverage
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>.Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research
analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
September 20, 2023 |5
Jewelry Retail: Value appreciation and cultural significance
provide natural tailwinds, offer relatively more resilience
India’s love for ‘gold’ is clearly evident in its positon as the second-largest importer of gold
globally, only marginally behind China. The category’s resilience is also demonstrated by the
jewelry category leading other discretionary categories, with 175% recovery in FY23 (over
FY20; pre-pandemic) and 10% CAGR over FY16-23, despite a glut of unfavorable regulatory
changes and gold-price volatility (refer Exhibit 11-12). The better recovery is a result of strong
cultural significance of gold in Indian weddings/festive seasons and the associated investment
value in times of uncertainty. Basis such growth drivers, we expect continued strong CAGR of
9-10% for Indian jewelry retail over the next decade as well.
More importantly, shift towards organized retail has accelerated, with: 1) improved access to
growth capital (equity/gold-metal-loans) and franchisee investments for organized players; 2)
loss of profit avenues for unorganized players with regulatory curbs on under-carat-age/price
arbitrage, with implementation of GST/hallmarking; and 3) increase in urbanization/women-
workforce-participation, which is driving higher spends on studded jewelry and better designs
(higher making charges).
Exhibit 11: The category (i.e. gold jewelry) has shown resilience, despite a spate of regulatory interventions
FY16
FY23
FY26E
FY36E
FY16-23
FY23-26E
FY26-36E
CAGR (%)
Gold rate (USD/Troy Ounce)
1,160
1,800
2,025
2,721
6.5
4.0
3.0
INR-USD currency
64
79
88
131
3.0
4.0
4.0
Gold rate (INR/10gm)
23,915
45,512
57,587
1,14,560
9.6
8.2
7.1
India Custom Duty (%)
10%
15%
15%
15%
Gold Imports (ton)
857
774
774
774
-1.4
0.0
0.0
Total Imports - Value (Rs trn)
2.3
4.1
5.1
10.2
8.7
8.2
7.1
Gold exchange incremental sales mix (%)
8%
12%
13%
19%
0.5
0.4
0.5
Studded incremental sales mix (%)
4%
8%
11%
17%
0.5
0.9
0.5
Brand/Design incremental sales mix (%)
4%
8%
9%
16%
0.5
0.5
0.6
Total Gold Jewelry consumption (Rs trn)
2.6
5.2
7.0
16.3
10.3
10.1
8.8
Source: World Gold Council, Emkay Research; Note: WGC follows calendar-year reporting (FY16 is CY15 and so on, for WGC numbers)
Exhibit 12: Jewelry retailers have seen a relatively higher recovery than other discretionary categories (over pre-pandemic levels; FY20)
Source: Company, Emkay Research
Organized players are also expanding faster than the overall industry, with increasing
willingness of third-party retailers to invest and participate in the strong growth journey of
organized watch retail. Strong brand recall is crucial for gaining traction with franchisees.
Across major organized players, franchisees form 20-45% of the overall store network.
Exhibit 13: Strong organized brands have access to franchisee capital; expansion is asset-light
Source: Company (Senco, Kalyan); Emkay Research (channel checks for TTAN)
113
115
166
203
131
147
165
169
171
105
114
118
121
168
243
132
139
168
186
193
BATA
RELAXO
METRO
CAMPUS
JUBI
WESTLIFE
DEVYANI
SAPPHIRE
BK India
TCNSBR
ARVIND
SHOP
VMART
ABFRL
TRENT
TBZ
KALYAN
SENCO
THANGAMAYIL
TTAN
Footwear: 132
Jewelry: 173
Apparel: 154
QSR: 149
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analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
September 20, 2023 |6
Gold price increase is a natural tailwind for jewelry industry: Jewelry industry has seen
10% CAGR over FY16-23, largely led by realization growth, as volume has largely remained
stable over many years now. We believe stable volume is a function of a strong increase in
gold price which is resulting in a volume squeeze by consumers to protect their wallets.
Incrementally, value addition in the form of higher studded mix and better designs (making
charges) has added 150-200bps to industry growth. Going ahead, we expect continued strong
trends for the industry, driven by a high single-digit industry growth and growing share of
studded/high-margin purchases, on improved urbanization and higher per-capita income.
Exhibit 14: Gold price increase and long-term INR depreciation are
natural growth drivers for the category
Source: WGC, Emkay Research; Note: FY16 is CY15 and so on, for WGC
numbers
Exhibit 15: Demand is seasonal, with Q3 being the strongest quarter,
followed by Q1/Q4; Q2 is the weakest quarter
Source: Thangamayil investor PPT, Emkay Research
Low per-capita in East India provides long-term growth potential; Senco commands
dominant share among organized players: Among regions, South India leads with 40%
share, the North and West follow with 20-25% share, while the East lags with the lowest share
of 15%. Salience across regions depends on per-capita income across regions. Among
rural/urban regions, Rural in East India logs significantly lower per-capita consumption vs the
national average. However, this provides scope for continued growth with potential increase in
per-capita income of these regions going ahead. Among the top-7 organized jewelry chains in
the region, Senco, PC Chandra and Tanishq command the majority share. Regional players like
MPJ Jewelers and Anjali Jewelers are relatively less aggressive on the growth front, while
Kalyan/Malabar are starting to test the waters in East India. Jewelry is a seasonal business
with high salience towards festive/wedding/harvest periods. Among quarters, Q3 is the
strongest, followed by Q1, Q4 and Q2 in that order.
Exhibit 16: Lower per-capita income drives lower mix for East
India; longevity of growth is high, with expected rise in per-capita
Source: Senco RHP document, Emkay Research
Exhibit 17: The East is a Rs800-bn market, with Senco/PC
Chandra/Tanishq commanding leadership shares
Source: Emkay Research, Note: The size of the bubble in the chart
represents the ballpark market share (%) in West Bengal
Hallmarking/GST implementation a fortunate turn for organized players: Regulatory
changes over the past few years have plugged key bad practices or profit avenues for
unorganized players, thereby accelerating the shift towards organized players. Unorganized
players have always benefited from under-caratage, aiding in ‘making charges’ staying below
organized players’ and gaining traction with consumers. However, with implementation of
hallmarking (HUID), unorganized players have to compensate the under-caratage loss by
increasing their making charges, resulting in a level-playing field for all players. Similarly, GST
implementation has curbed price arbitrage enjoyed by unorganized players, again accelerating
the market-share shift towards organized players.
100
110
3
6
1
1
INR/USD
Designs/
Studded
Custom
Duty
Gold
price
Volumes
Components of Indian Jewelry category growth (FY16-23)
-1
20%
15%
25%
40%
North East West South, Region wise value market share
Tanishq
Kalyan
PC
Chandra
Malabar
Senco
MPJ
Anjali
Design Language (bsed on grammage)
Making Charges
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Senco Gold (SENCO IN)
India Equity Research | Initiating Coverage
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analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
September 20, 2023 |7
Differentiated product, improved capital access and
first-mover advantage should help to accelerate growth
Senco Gold is part of select and elite group of organized jewelers, who have seen faster and
consistent growth over the last decade (~15% CAGR for Senco over FY16-23 vs. 10-11%
growth for the industry). The 15% revenue CAGR has been led by ~8% CAGR in store additions,
with the remaining through a healthy growth in average revenue per store (or SSG). Despite
the higher base, we expect Senco to deliver earnings CAGR of >20% over FY23-26E, with
accelerated expansion through IPO proceeds (12% store-addition CAGR vs. 8% historically).
At present, RoE is in mid-teens which should gradually track an improving trend with increase
in franchisee mix and better inventory turns on consumers adapting to elevated gold prices.
Senco as a brand stands out in terms of its light-weight jewelry with a heavy look which ensures
the best affordability for the emerging middle-class consumer. Sourcing, merchandising and
marketing are the company’s key moats that ensure product differentiation, micro-market-
based assortment, and help it to on-board new consumers with attractive offers and celebrity
endorsements. Going ahead, Senco’s focus is to leverage its strong brand equity for expansion
through franchisees in eastern India and strengthen its brand in non-eastern regions via
company-owned stores initially.
Exhibit 18: IPO proceeds, product differentiation (light-weight jewelry) and accelerated organized shift should help to deliver >20% growth
over FY23-26E vs. 15% over FY16-23
FY16
FY23
FY26E
FY36E
FY16-23
FY23-26E
FY26-36E
CAGR (%)
Gold rate (USD/Troy Ounce)
1,160
1,800
2,025
2,721
6.5
4.0
3.0
INR-USD currency rate
64
79
88
131
3.0
4.0
4.0
Gold rate (INR/10g)
23,915
45,512
57,587
1,14,560
9.6
8.2
7.1
India Custom Duty (%)
10%
15%
15%
15%
Gold Imports (ton)
857
774
774
774
-1.4
0.0
0.0
Total Imports - Value (Rs trn)
2.3
4.1
5.1
10.2
8.7
8.2
7.1
[A] Gold exchange incremental sales mix (%)
8%
12%
13%
19%
[B] Studded incremental sales mix (%)
4%
8%
11%
17%
[C] Brand/Design incremental sales mix (%)
4%
8%
9%
16%
Total Gold Jewelry consumption (Rs trn)
2.6
5.2
7.0
16.3
10.3
10.1
8.8
Total Gold Jewelry consumption (East India, Rs bn)
787
1,196
3,716
15.0
12.0
Senco - Revenue (East India, Rs bn)
33
57
260
19.8
16.3
Market Share
4.2%
4.8%
7.0%
Total Gold Jewelry consumption (other regions, Rs bn)
4,457
5,794
12,546
9.1
8.0
Senco – Revenue (other regions, Rs bn)
6
11
125
19.7
28.0
Market Share (%)
0.1%
0.2%
1.0%
Senco Gold (other segments, Rs bn)
1.2
3.2
13.0
39.8
15.0
Total Revenue - Senco Gold (Rs bn)
15.3
40.8
71.2
398.5
15.0
20.4
18.8
Source: World Gold Council, Kalyan/Senco Gold RHP Document, Emkay Research; Note: WGC follows calendar-year reporting (FY16 is CY15 and so on)
Exhibit 19: Senco is part of the elite group of jewelers that have seen faster and consistent growth over the last decade
Source: MCA, Company, Emkay Research; Note: Revenue includes export revenue across players; Malabar topline includes wholesale revenue as well
92
68
87
15 58 13 59
98
17
300
191
243
35
103
22
82
108
18
22
19
19
15
10
10
6
2
2
0
5
10
15
20
25
0
50
100
150
200
250
300
350
Malabar GRT Titan
(Jewelry)
Senco Gold Joyalukkas Thangamayil Lalithaa Kalyan TBZ
FY16 Revenue (Rsbn) FY22 Revenue (Rsbn) Revenue CAGR (%)
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analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
September 20, 2023 |8
Senco’s strength in light-weight offerings makes it the most accessible brand for
middle-class consumers in East India:
1) Product: Senco leverages its multi-decadal relationship with karigars (in Kolkata) to
offer relatively light-weight ornaments with a heavy-look. This helps Senco to
differentiate itself from players who offer heavier jewelry (higher grammage). From a
category perspective, presence is across categories, with major contributors being
necklaces, bangles, rings/pendants and gold chains. Senco scores well on customer
trust, as the brand has improved its ranking from the fourth most-trusted jewelry
brand in 2017 (TRA’s Brand Trust Report) to the second 2nd most-trusted jewelry
brand since 2020.
2) Pricing: Merchandise at stores is localized, with focus on addressing the entire
middle-class of the local catchment through its light-weight jewelry. For all categories,
Senco starts off with a <10gm offering, through which it is able to offer a similar look
with 15-20% lower grammage than peers (channel checks). In other words, key focus
is on maintaining superior brand accessibility and generating higher footfalls, albeit at
lower ticket size vs. peers (Rs60-70K ticket size vs. Rs80-125K for TTAN, Kalyan).
3) Promotion: With focus on light-weight jewelry, Senco invests in both, ATL and BTL
avenues of marketing, to garner the required footfalls. The company spends ~2% of
sales earnings in ads/marketing, with focus on top-of-the-funnel marketing, to gain
new consumers. In addition to its mass-marketing initiatives with celebrity brand
ambassadors (Kiara Advani, Sourav Ganguly and Vidya Balan), Senco makes
extensive efforts in store-level marketing initiatives, such as cross-marketing with
other retailing formats, specific event-based schemes in housing societies/tourist
hotspots and strong engagement with local influencers/regional celebrities.
4) Placement: Senco largely distributes its products through the Senco-branded EBOs
(both COCO/FOFO). The company has presence in 85 cities via 142 stores, of which
80 are in the COCO format with the remaining in the FOFO format. Focus is to have
presence in metro/tier-1 cities through COCO stores and penetrate deeper into Tier-
2/3/4 cities via the asset-light FOFO model. Jewelry is sold to franchisees on an
outright basis, with Senco retaining 1/3rd margin and distributing the balance to
franchisees. Franchisee return on mature stores is healthy, in the 15-20% range, in
addition to the long-term appreciation of the gold inventory.
Exhibit 20: Senco focuses on maintaining superior brand accessibility, via light-weight product offerings, customer engagement, purity and
branding initiatives
Source: Emkay Research (channel checks); Note: The size of the bubble represents ball-park value share of an article within its category for Senco
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September 20, 2023 |9
Exhibit 21: Channel checks suggest differing merchandise across stores in Kolkata, based on clientele in the local catchment area
Store-level metrics
Kolkata stores
Remarks
Camac Street
Baguihati
Moulali
Store Size (sqft)
5,500
12,000
5,000
Avg. Ticket Size (ATS, Rs)
95,000
66,000
80,000
ATS differs, based on sales mix (studded/regular/wedding)
Avg. Daily Footfalls (x)
20
65
50
Conversion (%)
75
80
80
Conversions are broadly similar across stores
No. of bill cuts/month (x)
450
1,550
1,200
Bill-cuts differ, based on assortment at stores
Revenue (Rs mn)
500
1,250
1,150
Studded Mix (%)
25
15
5
Stores are targeting different mix, based on micro-markets
Gross Profit (Rs mn)
110
213
151
Gross margin (%)
22
17
13
Gross margins are different based on studded mix at stores
EBITDA (Rs mn)
50
186
129
EBITDA margin (%)
10
15
11
Inventory (Rs mn)
450
350
300
Inventory differs across stores, based on demand in markets
Source: Emkay Research (channel checks)
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analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
September 20, 2023 |10
Skewed EBO penetration provides a long growth runway: Senco boasts of garnering one
of the top-2 revenue shares in the eastern market, which contributes >80% to its overall
revenue. Our analysis suggests that the East is an ~Rs800bn market (~15% of overall India
market), wherein Senco has a mid-single-digit market share. Senco has strong brand strength
in the West Bengal market which has helped it to penetrate deeper with the help of franchisees.
Senco has presence in >55 cities vs. 13-30 cities for PC Chandra/Tanishq/MPJ/Anjali; presence
of other brands like Kalyan/Malabar is much lower. We expect Senco to leverage its ahead-of-
the-curve investments and continue growing strongly in the eastern region, given that market
share is still low here. Also, initial signs have been encouraging in the non-eastern regions of
Delhi-NCR/Uttar Pradesh, with stores reporting 15-20% studded mix (vs. overall mix of 10%).
Success in new regions, coupled with expansion in the East, provides a long growth runway for
Senco. Given improved access to capital, we expect Senco to increase the pace of store
additions, with 60 adds over FY23-26E on a base of 136 stores.
Franchisee model well established for Senco: Senco definitely scores higher in terms of
franchisee relationship/experience when compared with most jewelers (ex-TTAN). Of the
overall network of 136 stores (FY23-end), Senco has 61 franchise stores that contribute ~35%
to overall revenue. Most franchisees have >2 stores, highlighting long-term relationships and
satisfied franchisees. With strong brand strength in eastern India, franchisees are primarily
located in West Bengal, with inroads made in states like Orissa, Assam, Bihar and Jharkhand.
Exhibit 22: Senco leads the pack in the East, with relatively much
deeper penetration in the West Bengal market
Source: Store locators (Company websites), Emkay Research
Exhibit 23: We expect network expansion to accelerate, with 60
new additions over FY23-26, on a base of 136 stores
Source: Senco RHP document (historicals), Emkay Research (projections)
Exhibit 24: Majority of Senco Gold’s revenue, at ~80%, is reaped
from East India currently
Source: Senco RHP document, Emkay Research
Exhibit 25: Senco has penetrated deeper into Tier-1/Tier-2 cities,
via the franchisee route
Source: Company, Emkay Research
85
52
25 25
19
4
2
55
30
16
13
15
2
1
Senco PC
Chandra
Anjali Tanishq MPJ Kalyan Malabar
Stores (x) Cities (x)
136
196
45
15
FY23 Store
Count
COCO additions
(FY23-26)
FOFO additions
(FY23-26)
FY26 Store
Count
70
12
15
3
West Bengal Rest-East Rest-India Others , Revenue split (FY23, %)
34
30
11
12
49
0
10
20
30
40
50
60
70
Metro Tier 1 Tier 2
Company owned Franchisee owned, No. of stores (x)
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September 20, 2023 |11
Increase in Franchisee mix should drive RoE improvement: Senco’s modus operandi is
to build its brand in Metros/Tier-1 cities, and then improve brand penetration through
franchisee-led expansion (asset-light) in adjacent Tier-2/3 cities. While COCO stores generate
a decent RoE of 13-14%, FOFO stores log much higher RoE, of 40-50%, due to lower invested
capital (Emkay estimate: Rs15mn for a FOFO store vs. Rs220mn for a COCO store). Working
Capital (WC) is relatively higher for the business, as the category requires larger stores holding
significant amount of high-value inventory (gold, gems and other precious metals), thereby
driving relatively-lower RoE compared with other retail formats. The format also has multiple
categories (necklace, bangles, rings and chains), requiring multiple designs to gain traction
with consumers. A significant increase in gold prices has led to incommensurate increase in
store-level revenues (vs. store inventory levels), leading to lower inventory turns in the short
term. However, RoE should further improve, as customers get accustomed to the elevated gold
rates as well as with increase in franchisee mix in the overall business. Notably, historical RoE
for Senco was higher due to inventory gains related to steep increase in diamond prices, which
are expected to normalize in coming years.
Exhibit 26: Channel-wise Unit Metrics
(Rs mn)
COCO stores
FOFO stores
Unit metrics
FY23
FY24E
FY26E
FY23
FY24E
FY26E
Revenue
368
393
421
239
279
324
Gross margin (incl. Job work; %)
18.5
17.1
17.5
6.8
5.5
5.8
Store running expenses, % of sales
5.9
5.8
5.9
0.2
0.2
0.2
Store EBITDA margin (%)
12.6
11.3
11.5
6.6
5.3
5.6
HO Costs (Ad/Employee), % of sales
3.2
2.8
2.7
5.0
4.0
3.5
EBITDA
34
34
37
4
4
7
EBITDA Margin (%)
9.3
8.5
8.8
1.6
1.3
2.1
Depreciation
2
3
3
EBIT
32
31
35
3.9
3.6
6.8
Interest Expense
8
9
8
1.1
1.3
1.4
Other Income
4
4
4
PBT
28
27
30
2.8
2.3
5.3
Tax
7
7
8
0.7
0.6
1.4
PAT
20.9
19.6
22.2
2.1
1.7
3.9
PAT margin (%)
5.7
5.0
5.3
0.9
0.6
1.2
Working Capital
183
184
189
11
12
18
Capex - Gross Assets
29
31
32
Total Invested Capital
212
216
221
11
12
18
Gross Debt
67
62
50
9
9
8
Equity
145
154
171
2
3
10
RoE* (%)
14.4
12.8
13.0
115.7
56.3
39.7
Source: Company (historicals), Emkay Research (projections); Note: RoE here will differ from the reported
RoE, as it is being calculated on gross assets (for capex) and pre-IndAS numbers
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analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
September 20, 2023 |12
Natural gold appreciation is a big SSG lever; attractive schemes to help drive the
organized shift faster: We expect Senco to deliver strong SSG of 9-10% in the medium term,
helped by natural appreciation in gold prices, premiumization (products with higher making
charges/studded) and volume growth enabled by shift towards organized. Shift to organized
players is enabled by attractive schemes, hallmarking, skilled employees and improved
availability of capital for organized players (equity/Gold Metal Loans/franchisees). Key ATL
initiatives undertaken by Senco to drive this shift include rationalization of gold prices, event-
based schemes on Gold exchange (Zero deduction) and strong IRRs on Gold deposit schemes
(Suvarna Yojana). Among BTL initiatives, Senco does cross-marketing with other retail formats
(like Pantaloons) and proactive reach out to customers in local catchments/tourist hotspots.
Further, Senco is expanding its customer base via the D’Signia and Everlite store formats,
targeting affluent/GenZ customers (4-5% of FY23 sales). Filling of key portfolio gaps should
also drive a strong SSG for Senco.
Exhibit 27: Senco offers attractive exchange offers (nil deduction) from time to time; such offers
help customers during an elevated gold-price environment
Source: Social marketing handles, Emkay Research
Exhibit 28: Senco undertakes ATL activities (celebrity endorsements)
to create desire & aspiration in consumers’ minds
Source: Social marketing handles, Emkay Research
Exhibit 29: Event-specific offers are targeted to accelerate shift
towards organized players
Source: Social marketing handles, Emkay Research
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Senco Gold (SENCO IN)
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Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>.Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research
analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
September 20, 2023 |13
Peer Comparison
Strong growth delivery; returns profile matches Kalyan’s, is better than others’:
Senco comes with a heritage of strong growth performance and has delivered a strong ~19%
revenue CAGR over FY20-23. Given that preference is relatively higher for high-margin hand-
made jewelry in eastern India, margin for Senco is better vs. South-based jewelers like
Thangamayil/Kalyan. However, revenue/store is relatively lower for Senco due to lower per-
capita consumption in eastern India (200g/wedding vs. 300-350g/wedding in southern India).
But the same gets adjusted with the lower inventory requirement at the store level. Better
margins help Senco to still command a better ROCE profile vs. peers (ex-TTAN). TTAN clearly
enjoys best profitability/return ratios among jewelry retailers, on account of 2-3x margins,
helped by stronger brand and higher studded mix. In addition to the superior margins, TTAN’s
superior brand strength helps it to enjoy better traction among franchisees and attain deeper
penetration with presence in 251 cities through 423 stores.
Senco’s focus remains on improving studded mix: Studded mix is lower at 10-15% for
most jewelry retailers compared with 25-30% for TTAN/Kalyan. In our view, Senco’s studded
mix has, so far, been lower due to higher mix of plain gold jewelry in the eastern market.
However, studded mix should increase with increase in mix of non-eastern markets in overall
revenue, as Senco is already seeing higher studded mix at 15-20% in markets like Delhi.
Exhibit 30: Comparison across key parameters for listed jewelry retailers
Company name
TTAN*
Senco
Thangamayil
KALYAN
TBZ
P&L Comparison
Revenue CAGR (3Y; %)
22
19
23
12
10
Brand Strength





Franchisee Arrangement




Number of Stores (FY23-end)
423
136
53
149**
32
Avg. Bill Size (Rs)
120K
65K
NA***
75K
125K
Revenue/Store (Rs mn)
900
375
750
850
780
Studded Mix
30%
11-12%
10%
27-28%
20%
Gross margin
27-29%
17-18%
9-10%
15-16%
12-14%
Store EBITDA margin
22-23%
10%
4-5%
8-9%
5-6%
Depreciation (Rs mn)
4.0
2.5
4.0
4.5
5.0
EBIT margin
22%
9%
3%
7%
4%
Balance Sheet Comparison
WC/Store (Rs mn)#
360
180
180
300
300
Capex/Store (Rs mn)
40
25
40
45
50
Invested Capital/Store (Rs mn)
400
205
220
345
350
Store ROCE
50%
17%
12%
18%
10%
DuPont Analysis
Net Profit margin




IC turnover





Leverage




Overall




Source: Emkay Research (channel checks); Note: *TTAN metrics are indicative of COCO stores and based on channel checks; **India store count for Kalyan,
***Data not available, #WC/Store includes Gold metal loan and other deposits/margin money
.
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Senco Gold (SENCO IN)
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analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
September 20, 2023 |14
Exhibit 31: The East market has relatively lower per-capita consumption currently, thus providing
scope for continued growth in the region
Source: Kalyan RHP document
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Senco Gold (SENCO IN)
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analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
September 20, 2023 |15
Follows hygiene practices for sourcing; stated policy of 50% hedging Gold exposure:
Sourcing of Gold inventory (~80% of total inventory) is mainly through: i) gold metal loans
(50%); ii) bullion dealers/trading agents (25%), and iii) gold exchange programs (25%). Senco
has credit limit of ~Rs20bn, 75% of which is for gold-metal loans (30% consortium and rest
outside consortium) and the balance is for cash-credit (CC)/WC demand loan (WCDL)/Letter of
credit (SBLC). Notably, non-consortium loans require 110% margin. However, in our view, a
non-consortium loan is still a better way to fund growth (compared with equity), as rate of
interest on margin money is higher than the cost of interest on gold metal loan.
Gold-metal loans a natural source of hedging: As of FY23-end, Senco has availed credit
facility of Rs11.6bn, of which ~Rs6bn is gold-metal-loan (~50% of gold inventory and ~35%
of overall inventory), with the remaining used for CC/WCDL/SBLC. Gold metal loans act as a
natural hedge against gold price volatility, as purchase price is fixed on the day of gold sale to
consumers, thereby protecting 50% of gold inventory from price volatility. While the stated
policy asks for 50% hedging, Senco hedges 80-90% in its normal business routine, by entering
into forward contracts/hedges on the rest of the inventory.
Exhibit 32: Almost 50% sourcing of gold is hedged through Gold-
metal-loans
Source: Company, Emkay Research
Exhibit 33: Mix of sales channels for Senco
Source: Emkay Research
Exhibit 34: Process for sourcing through Gold metal loans (GML; interest rate for GML sourcing is 3-3.5% for Senco Gold)
Source: TBZ investor presentation, Emkay research
Gold Metal
Loan, 49%
Bullion/
Trading
Jewelry,
24%
Gold
exchange,
27%
Annual Gold Sourcing (%)
Gold
Exchange,
27%
Jewelry Purchase
Schemes, 10%
Spot Sales,
63%
Annual Sales Mix (%)
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Senco Gold (SENCO IN)
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analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
September 20, 2023 |16
Jewelry purchase schemes: Cheaper source of capital; share increase provides scope
for RoE improvement
In our view, Gold deposit schemes are a relatively cheaper source of capital, albeit the amount
of overall deposit that can be raised from consumers is restricted to 25% of overall shareholder
equity via regulations. Along with working-capital funding, such schemes also help to increase
the frequency of purchase as they guarantee attractive IRRs to consumers. Though guaranteed
IRRs are in the 12-15% range, in terms of purchase values across players (10-12-month
schemes), it is to be noted that companies are incurring only associated COGS (80-85% of
purchase value), thereby making it a relatively cheaper source of capital.
Senco has three deposit schemes: Swarna Labh, Swarna Yojana and Swarna Vridhi, which call
for monthly instalments for 6/11/18 months and provide IRR of 18%/14%/11% to consumers,
in terms of purchase value. Lower tenure schemes provide higher IRR as it increases the
frequency of deposits and also helps to raise more capital to fund growth.
Exhibit 35: Jewelry purchase schemes are a cheaper source of
capital and improve the frequency of purchase by customers
Source: Social marketing platforms, Emkay Research
Exhibit 36: Senco provides an IRR of 18%/14%/11% to
consumers, in terms of purchase value
Source: Company website, Emkay Research; Note: Discount given is equal
to IRR on purchase value, and is over & above the prevailing discount
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Senco Gold (SENCO IN)
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analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
September 20, 2023 |17
Financials: Accelerated expansion and strong SSG to
drive >20% PAT CAGR
Given significant consumption thrust towards organized retailers (trust, service, marketing),
Senco’s focus remains on revenue growth vs. margin gains or working capital reduction in the
near future. Our investment thesis on Senco rests on ~20% revenue/EBITDA/PAT CAGR in the
medium term, enabled by strong SSG, in a high single-digit, and healthy network expansion
of 12% every year. After an initial dip in margin/RoE, on account of aggressive schemes to
recruit new customers, absence of diamond-inventory gains in FY24 (vs. FY23) and equity-led
expansion, we expect margins/RoE to continue on an improving trend thereafter, aided by
operating leverage and utilization of balance-sheet cash. With majority expansion through
capital-intensive COCO stores (Rs200mn/store) over FY23-26E, free-cash-flow-to-equity
(FCFE) is expected to remain negative over this period, post which there should be a significant
improvement in cash flows.
Exhibit 37: We expect revenue/EBITDA/PAT CAGR of ~20% over
FY23-26E, largely led by topline growth and stable margins
Source: Senco RHP document (historicals), Emkay Research (projections)
Exhibit 38: We expect topline CAGR of 20% to be supported by
9%/12% SSG/store addition CAGR
Source: Senco RHP document (historicals), Emkay Research (projections)
Exhibit 39: Expect expansion to be led by capital-intensive COCO
stores over FY23-26E, post which FOFO additions should pick-up
Source: Senco RHP document (historicals), Emkay Research (projections)
Exhibit 40: Higher COCO additions should drive continued improvement
in revenue mix for this channel over FY23-26
Source: Senco RHP document (historicals), Emkay Research (projections)
Exhibit 41: Operating leverage to help margin recovery despite
lower gross margin, on absence of any one-off in FY24
Source: Senco RHP document (historicals), Emkay Research (projections)
Exhibit 42: We expect ROE to recover to the mid-teens, on margin
recovery and utilization of balance-sheet cash
Source: Senco RHP document (historicals), Emkay Research (projections)
19
14
20
20
20
20
0
5
10
15
20
25
Revenue EBITDA PAT
FY20-23 FY23-26E, CAGR (%)
9
10
19
12
8 20
0
5
10
15
20
25
Store
CAGR
SSG
CAGR
Revenue
CAGR
Store
CAGR
SSG
CAGR
Revenue
CAGR
FY20-23 (%)
FY23-26E (%)
136
196
45
15
FY23 Store
Count
COCO additions
(FY23-26)
FOFO additions
(FY23-26)
FY26 Store
Count
62
34
4
65
32
3
67
29
4
0
10
20
30
40
50
60
70
80
Owned Store Franchisee Store Others
FY20 FY23 FY26E, Rev. mix (%)
13.0
1.9
1.1
1.7
2.0
6.3
14.5
2.3
1.2
2.0
2.3
6.7
13.6
2.2
1.2
1.4
2.2
6.6
0
2
4
6
8
10
12
14
16
Gross (%) Employee (%) Rent (%) Ad (%) Others (%) EBITDA (%)
FY19 FY23 FY26E, (% of sales; Pre-IndAS116)
13.0
15.6
12.4
13.7
14.5
13.0
13.3
13.6
15.4
16.5
10.2
17.8
16.8
12.2
13.7
14.9
6.3
8.0
5.3
6.7
6.7
6.0
6.3
6.6
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
10
12
14
16
18
20
22
24
FY19 FY20 FY21 FY22 FY23 FY24E FY25E FY26E
Gross Margin (LHS, %) RoE (LHS, %) EBITDA Margin (RHS, %)
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Senco Gold (SENCO IN)
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analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
September 20, 2023 |18
Expect stable working capital on strong plans for non-East expansion: Working capital
is the most crucial investment in the jewelry business and forms >90% of invested capital for
Senco. However, the inventory liquidation risk is relatively lower, as the WC constituents
(gold/other precious metals) are readily monetizable and Senco hedges ~80% of overall gold
inventory to remain protected from the volatility in gold prices. Notably, the stated policy is
to hedge >50% of overall gold inventory, but the company hedges 80-90% as a
normal business practice. Typically, a COCO store requires WC investment of Rs200mn,
which is a combination of Rs250mn inventory (Store + Head Office), Rs50-60mn deposits
(margin/GML) and credits from gold deposit schemes (Rs30mn)/gold metal loans (Rs90mn).
We expect working capital to normalize to ~115 days over FY23-26E, led by the recent
moderation in gold prices and other operational efficiencies. Post FY26, working capital should
remain on an improving trend, led by an asset-light franchisee-led expansion.
Exhibit 43: We expect WC to remain stable at ~115 days over FY24-26E, post a reduction in inventory days in FY24 due to the recent
correction in gold prices
Source: Senco RHP (historicals), Emkay (projections), *Please note ‘other net Assets’ include Gold metal loans and other deposits/margin money
Internal accruals to service 80% of the required growth capital over FY23-26E: Given
focus on brand creation through company-owned stores in new territories in the North and East
India, we expect initial expansion to be through capital-intensive company-owned stores
(COCO model; Rs200-220mn investment per store). Post establishment of a strong brand in
new territories, we expect further expansion to be driven by asset-light franchisee stores (FOFO
model), significantly aiding free-cash-flows for the company. We expect Senco to open 45
COCO stores over FY23-26E, which will entail capex/working capital investment of ~Rs10bn.
We expect internal accruals to service 80% of the required growth capital, while the balance
20% should be serviced by the recent equity capital raise.
Exhibit 44: Senco will require Rs10bn growth capital to open 45 COCO stores over FY23-26, of which 80% would be serviced by internal
accruals
Source: Senco RHP document (historicals), Emkay Research (projections)
164
4
19
-21
128
143
4
8
-27
111
144
4
12
-24
112
169
4
13
-35
125
164
4
10
-41
116
163
3
10
-41
116
161
3
10
-39
116
(100)
(50)
0
50
100
150
200
Inventory days Receivables days Payables days Other net Assets days WC days
FY20 FY21 FY22 FY23 FY24E FY25E FY26E (Number of Days)
0.1
0.6
2.7
0.8
7.5
8.7
1.5
0.5
Cash (FY23) Equity Raise (FY24) Debt Raise (FY23-
26)
CFO (before WC
changes)
WC Investments
(FY23-26)
Capex (FY23-26) Dividend (FY23-26) Cash (FY26)
Sources of Funds (Rs bn)
Usage of Funds (Rs bn)
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September 20, 2023 |19
Valuations: Trading at steep discount to peers; Consistent
delivery on our expectations provides scope for re-rating
We expect Senco to deliver ~20% revenue/PAT CAGR over FY23-26E which is in line with that
of some of the best-performing companies in our coverage universe. PAT CAGR would largely
be led by revenue growth, along with our expectation of stable EBITDA margin. Medium-term
growth prospects are also healthy, as scope to increase market share remains healthy in the
current geography of operations and focus efforts are afoot to expand in the adjacent regions
of the Northeast (Assam, Tripura), East (Bihar/Jharkhand/Orissa) and North (Delhi-NCR/UP).
We expect the high-teens earnings CAGR to continue over FY26-36E as well.
We believe RoE would recover to mid-teen levels post the near-term moderation, due to
normalization of gross margin on absence of diamond inventory gains. However, the RoE should
keep inching up with increase in franchisee mix, improvement in asset turns with customers
adapting to the elevated gold prices and increase in mix of jewelry purchase schemes.
Despite similar growth prospects, Senco is trading at ~40% discount to Kalyan Jewelers. While
Kalyan has relatively better brand strength for faster Pan-India expansion, we believe such a
steep discount is unwarranted and provides scope for re-rating, as Senco delivers on our
expectations going ahead. Given the recent listing and higher revenue concentration from
eastern markets currently, we are conservatively valuing the company at 20x Sep-25E EPS
and recommend BUY on the stock, with Sep-24E TP of Rs630/share.
Exhibit 45: Economic peer comparison
Company name
Price
(Rs)
Mcap
(Rs bn)
Reco
Target
Price
(Rs)
EPS (Rs)
P/E (x)
EV/EBITDA (x)*
FY23E
FY24E
FY25E
FY23E
FY24E
FY25E
FY23E
FY24E
FY25E
Titan Company
3,340
2,965
Hold
3,000
39.8
50.3
61.3
83.8
66.4
54.5
56.6
45.4
37.4
Varun Beverages
912
1,185
Buy
970
16.0
19.8
24.9
56.9
46.0
36.6
32.8
27.3
23.0
Page Industries
40,326
450
Sell
37,100
519.8
678.9
818.3
77.6
59.4
49.3
49.3
38.8
32.7
Jubilant FoodWorks
539
356
Sell
420
6.0
8.8
11.0
89.7
61.1
49.0
28.1
21.9
18.5
Devyani International
210
254
Hold
180
1.5
2.8
3.9
139.2
75.4
53.9
33.2
24.8
19.3
ABFRL
226
214
Hold
215
-5.3
-3.7
-2.2
-42.6
-60.9
-101.0
16.0
10.8
8.5
Westlife Development
980
153
Buy
1,035
10.4
12.9
17.1
94.5
76.1
57.1
31.0
26.2
21.4
Sapphire Foods
1,453
93
Hold
1,400
22.6
32.6
44.1
64.3
44.5
32.9
16.5
12.1
9.7
Go Fashion
1,361
74
Buy
1,430
19.4
26.4
34.0
70.2
51.5
40.0
27.1
20.7
16.5
Ethos
1,712
40
Buy
1,770
31.8
46.1
57.7
53.8
37.1
29.7
25.6
18.1
14.6
Senco Gold
473
37
Buy
630
21.6
27.6
35.0
21.9
17.1
13.5
11.7
9.3
7.5
Source: Company, Emkay Research; *Post IndAS-116 EBITDA
Exhibit 46: Senco currently trades at ~40% discount to Kalyan, despite similar revenue growth
prospects
Company (%)
FY23-26E CAGR
FY23
FY26
1-Yr fwd P/E (x)
Revenue
PAT
ROE
(Sep-24E EPS)
TTAN
18.0
18.5
30.9
26.5
74
KALYAN
23.0
31.4
11.9
16.2
33
SENCO
20.4
19.7
16.8
14.9
19
Source: Bloomberg estimates (Kalyan), Emkay Research
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September 20, 2023 |20
Potential upsides
Case-1: Improvement in credit rating and higher gold deposits can help to
increase access to low-cost capital and improve ROE: The cost and availability of
capital (gold metal loans/WCDL/CC/SBLC) depend on the assigned credit ratings by credit
agencies. Senco’s fund-based working capital facilities have been assigned a rating of
‘ICRA A’ with a stable outlook for long-term facilities and a rating of ‘ICRA A2+’ for short-
term facilities. An improvement in these ratings can lead to reduction in cost of capital,
thereby helping to improve the profit growth and ROE for Senco, in our view.
Case-2: Better margin/WC performance should help Senco to get re-rated: Given
expansion in the non-East regions through COCO stores, our FY23-26E margin is
conservative over FY23-26E. WC forms a significant part of the capital invested in the
business (~90%). We are not building-in any significant moderation in WC in our
estimates, and a better performance can significantly improve the RoE for Senco. Decline
in gold prices remains a big lever for WC reduction in the business.
Potential downsides
Case-3: Senco is venturing into new geographies of operations which may
require higher-than-expected time and investments: Senco is venturing into non-
eastern geographies to replicate its success in East India. While we are reasonably
confident of long-term success, given high share of unorganized players, an increase in
organized competition can delay the expected growth or can require more investments.
Case-4: Increase in Custom Duty: We have seen regulatory interventions like increase
in custom duty to reduce the fiscal deficit, in an uncertain macro environment. Such
actions push up the gold price, thereby weakening the demand environment for a short
period of time. While the GoI may chose this route for short-term fiscal disciplines, we do
not see risk of sustained increase in custom duty, as such actions lead to more incentives
for flow of smuggled gold into the country.
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September 20, 2023 |21
Appendix
Senco Gold is a Pan-India retail jewelry player with a history of more than five decades and
has a fourth-generation entrepreneur in the jewelry industry as the Promoter. It is the largest
organized jewelry retail player in the eastern region of India, based on number of stores. The
company primarily sells gold and diamond jewelry as well as jewelry made of silver, platinum
and precious & semi-precious stones and other metals. Other offerings include costume
jewelry, gold & silver coins, and utensils made of silver. Company offers a large variety of
designs of handcrafted jewelry, most of which are designed and manufactured in-house by own
designers, in close collaboration with skilled local craftsmen (generally termed karigars) in
Kolkata and across the country. Machine-made light weight jewelry in gold and diamonds is
also manufactured at Company’s manufacturing facility.
Exhibit 47: Senco Gold’s major events and milestones over the years
Year
Description
1994
Company incorporated by merging the existing proprietary and partnership
2000
Opened the first franchisee in Durgapur (West Bengal)
2002
Largest showroom with an area of ~8,000sqft launched in Kolkata (Moulali), West Bengal
2010
Adopted franchisee route to expand outside WB by opening first showroom in Assam
2012
Opened first showroom in Jharkhand under the franchisee model
2013
Entered northern region by opening the Lajpat Nagar showroom in Delhi
2014
Total number of showrooms cross 50; revenue crosses INR10bn
2015
Raises INR800mn equity from SAIF Partners India IV limited (now Elevation Capital)
2016
Entered southern region by opening a showroom in Bangalore; introduced the Everlite brand
2018
Revenue crossed INR20bn
2020
Crossed the 100-showrooms mark; launched 2 D'Signia showrooms targeting the elite class
2021
Awarded the second most-trusted jewelry brand by TRA and ET Trusted Brands
2022
Raises INR750mn equity from OIJIF II
2023
Revenue crossed INR40bn; listed on the NSE and BSE
Source: Company
Exhibit 48: Shareholding pattern
Source: Company, Emkay Research
Promoters,
68.5
Saif Partners
(PE), 11.6
OIJIF (PE), 3.4
FIIs, 3.1
Mutual
Funds,
7.2
Others
, 6.2
Promoters Saif Partners (PE) OIJIF (PE) FIIs Mutual Funds Others
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September 20, 2023 |22
Exhibit 49: A brief about Senco Gold’s key management team
Name
Designation
Description
Ranjana Sen
Chairperson
Ranjana Sen, aged 64 years, is the Chairperson and Whole Time Director of the Company. She holds a bachelor’s degree
in arts from the University of Calcutta. She has been associated with the Company since its incorporation and has over
29 years of experience in the jewelry industry
Suvankar Sen
Managing
Director/Chief
Executive
officer
Suvankar Sen, aged 39 years, is a Whole Time Director designated as MD and CEO of the Company. He holds a degree
in bachelors of Science with Honors in Economics from St. Xavier’s College, University of Calcutta. He also holds a post-
graduate diploma in business management from the Institute of Management Technology, Ghaziabad. He has been
associated with the Company since 2005 and has over 17 years of experience in the jewelry industry
Sanjay Banka
Chief Financial
Officer
Sanjay Banka has been associated with the Company since December 21, 2020. He is a fellow member of the ICAI and
ICSI. He is also a member of All India Management Association and Chartered Institute of Securities and Investment,
United Kingdom. He has over 20 years of experience in the field of banking, corporate finance, company secretary,
business strategy, M&A, taxation, IT implementation and treasury
Surendra Gupta
Company
Secretary &
Compliance
Officer
Surendra Gupta heads the secretarial department and joined Senco on May 22, 2013. He holds a bachelors’ degree in
commerce from the University of Calcutta and a L.L.B. degree from Magadh University. Further, he holds a degree in
master of Business laws from National Law School of India University. He is a member of the Institute of Company
Secretaries of India. He has over eight years of experience in the jewelry industry
Source: Senco Gold RHP document
Exhibit 50: Senco has invested to build a solid senior management employee base, to deliver a strong growth trajectory
Source: Senco RHP document
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September 20, 2023 |23
Senco Gold : Consolidated Financials and Valuations
Profit & Loss
Y/E Mar (Rs mn)
FY22
FY23
FY24E
FY25E
FY26E
Revenue
35,346
40,774
50,147
59,955
71,240
Revenue growth (%)
32.9
15.4
23.0
19.6
18.8
EBITDA
2,772
3,166
3,522
4,421
5,462
EBITDA growth (%)
58.1
14.2
11.2
25.5
23.6
Depreciation & Amortization
421
456
543
660
783
EBIT
2,351
2,711
2,979
3,761
4,679
EBIT growth (%)
73.2
15.3
9.9
26.2
24.4
Other operating income
0
0
0
0
0
Other income
128
311
360
396
436
Financial expense
709
861
1,069
1,256
1,442
PBT
1,770
2,162
2,270
2,900
3,673
Extraordinary items
0
0
0
0
0
Taxes
479
577
590
754
955
Minority interest
0
0
0
0
0
Income from JV/Associates
0
0
0
0
0
Reported PAT
1,291
1,585
1,680
2,146
2,718
PAT growth (%)
110.0
22.8
6.0
27.8
26.6
Adjusted PAT
1,291
1,585
1,680
2,146
2,718
Diluted EPS (Rs)
19.4
22.9
21.6
27.6
35.0
Diluted EPS growth (%)
110.0
18.0
(5.6)
27.8
26.6
DPS (Rs)
1.0
1.7
1.6
2.0
2.5
Dividend payout (%)
5.1
7.2
7.2
7.2
7.2
EBITDA margin (%)
7.8
7.8
7.0
7.4
7.7
EBIT margin (%)
6.7
6.6
5.9
6.3
6.6
Effective tax rate (%)
27.0
26.7
26.0
26.0
26.0
NOPLAT (pre-IndAS)
1,715
1,987
2,205
2,783
3,462
Shares outstanding (mn)
66.5
69.1
77.7
77.7
77.7
Source: Senco RHP document (historicals), Emkay Research (projections)
Cash flows
Y/E Mar (Rs mn)
FY22
FY23
FY24E
FY25E
FY26E
PBT
1,770
2,162
2,270
2,900
3,673
Others (non-cash items)
421
456
543
660
783
Taxes paid
(493)
(615)
(617)
(785)
(991)
Change in NWC
(2,697)
(3,324)
(1,989)
(2,985)
(3,528)
Operating cash flow
(418)
(773)
916
651
943
Capital expenditure
(235)
(393)
(480)
(495)
(510)
Acquisition of business
0
(1)
0
0
0
Interest & dividend income
128
311
360
396
436
Investing cash flow
(117)
(75)
(176)
(164)
(149)
Equity raised/(repaid)
0
750
2,700
0
0
Debt raised/(repaid)
1,496
1,322
307
326
347
Payment of lease liabilities
(390)
(447)
(529)
(650)
(780)
Interest paid
(518)
(642)
(810)
(938)
(1,059)
Dividend paid (incl tax)
0
0
0
0
0
Others
(43)
(136)
(121)
(155)
(196)
Financing cash flow
545
848
1,547
(1,417)
(1,689)
Net chg in Cash
10
(1)
2,286
(930)
(895)
OCF
(418)
(773)
916
651
943
Adj. OCF (w/o NWC chg.)
2,279
2,551
2,905
3,636
4,471
FCFF
(653)
(1,166)
436
156
433
FCFE
(1,234)
(1,715)
(273)
(705)
(573)
OCF/EBITDA (%)
(15.1)
(24.4)
26.0
14.7
17.3
FCFE/PAT (%)
(95.6)
(108.2)
(16.3)
(32.8)
(21.1)
FCFF/NOPLAT (%)
(38.1)
(58.7)
19.8
5.6
12.5
Source: Senco RHP document (historicals), Emkay Research (projections), *Change in Gold metal loan
is included in Change in NWC
Balance Sheet
Y/E Mar (Rs mn)
FY22
FY23
FY24E
FY25E
FY26E
Share capital
665
691
777
777
777
Reserves & Surplus
6,595
8,764
12,937
14,929
17,451
Net worth
7,260
9,455
13,714
15,706
18,228
Minority interests
0
0
0
0
0
Deferred tax liability (net)
(141)
(179)
(206)
(237)
(273)
Total debt
4,316
5,396
5,665
5,947
6,244
Total liabilities & equity
11,435
14,671
19,172
21,415
24,199
Net tangible fixed assets
691
847
1,085
1,299
1,488
Net intangible assets
25
23
56
89
120
Net ROU assets
(113)
(171)
(235)
(314)
(409)
Capital WIP
65
131
131
131
131
Goodwill
0
0
0
0
0
Investments [JV/Associates]
0
1
1
1
1
Cash & equivalents
95
95
2,381
1,451
556
Current assets (ex-cash)
18,468
25,850
30,269
35,811
42,165
Current Liab. & Prov.*
7,796
12,105
14,516
17,052
19,852
NWC (ex-cash)
10,672
13,746
15,753
18,760
22,313
Total assets
11,435
14,671
19,172
21,415
24,199
Net debt
4,221
5,301
3,284
4,496
5,688
Capital employed
11,435
14,671
19,172
21,415
24,199
Invested capital
11,274
14,445
16,659
19,833
23,511
BVPS (Rs)
109.2
136.7
176.6
202.2
234.7
Net Debt/Equity (x)
0.6
0.6
0.2
0.3
0.3
Net Debt/EBITDA (x)
1.5
1.7
0.9
1.0
1.0
Interest coverage (x)
0.3
0.3
0.3
0.3
0.3
RoCE (%)
24.6
23.2
19.7
20.5
22.4
Source: Senco RHP document (historicals), Emkay Research (projections), *Gold metal loan is included in
Current Liab. & Prov.
Valuations and key Ratios
Y/E Mar
FY22
FY23
FY24E
FY25E
FY26E
P/E (x)
24.4
20.7
21.9
17.1
13.5
P/CE(x)
18.4
16.0
16.5
13.1
10.5
P/B (x)
4.3
3.5
2.7
2.3
2.0
EV/Sales (x)
1.0
0.9
0.8
0.7
0.6
EV/EBITDA (x)
12.9
12.0
11.4
9.3
7.8
EV/EBIT(x)
15.2
14.0
13.4
11.0
9.1
EV/IC (x)
3.2
2.6
2.4
2.1
1.8
FCFF yield (%)
(1.8)
(3.1)
1.1
0.4
1.0
FCFE yield (%)
(3.9)
(5.2)
(0.7)
(1.9)
(1.6)
Dividend yield (%)
0.2
0.3
0.3
0.4
0.5
DuPont-RoE split
Net profit margin (%)
3.7
3.9
3.3
3.6
3.8
Total asset turnover (x)
3.5
3.1
3.0
3.0
3.1
Assets/Equity (x)
1.5
1.6
1.5
1.4
1.3
RoE (%)
19.4
19.0
14.5
14.6
16.0
DuPont-RoIC
NOPLAT margin (%)
4.9
4.9
4.4
4.6
4.9
IC turnover (x)
3.6
3.2
3.2
3.3
3.3
RoIC (%)
17.3
15.5
14.2
15.3
16.0
Operating metrics
Core NWC days
55.3
63.5
66.7
67.5
67.0
Total NWC days
110.2
123.0
114.7
114.2
114.3
Fixed asset turnover
21.9
22.6
23.4
23.5
24.0
Opex-to-revenue (%)
5.8
6.7
6.0
5.9
5.9
Source: Senco RHP document (historicals), Emkay Research (projections)
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September 20, 2023 |24
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and financial products like mutual funds, fixed deposits. Details of associates are available on our website i.e. www.emkayglobal.com.
EGFSL is registered as Research Analyst with the Securities and Exchange Board of India (“SEBI”) bearing registration Number INH000000354 as per SEBI
(Research Analysts) Regulations, 2014. EGFSL hereby declares that it has not defaulted with any Stock Exchange nor its activities were suspended by any
Stock Exchange with whom it is registered in last five years. However, SEBI and Stock Exchanges had conducted their routine inspection and based on their
observations have issued advice letters or levied minor penalty on EGFSL for certain operational deviations in ordinary/routine course of business. EGFSL
has not been debarred from doing business by any Stock Exchange / SEBI or any other authorities; nor has its certificate of registration been cancelled by
SEBI at any point of time.
EGFSL offers research services to its existing clients as well as prospects. The analyst for this report certifies that all of the views expressed in this report
accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was,
is or will be, directly or indirectly related to specific recommendations or views expressed in this report.
This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is
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have issued or may issue other reports (on technical or fundamental analysis basis) of the same subject company that are inconsistent with and reach
different conclusion from the information, recommendations or information presented in this report or are contrary to those contained in this report. Users
of this report may visit www.emkayglobal.com to view all Research Reports of EGFSL. The views and opinions expressed in this document may or may not
match or may be contrary with the views, estimates, rating, and target price of the research published by any other analyst or by associate entities of
EGFSL; our proprietary trading, investment businesses or other associate entities may make investment decisions that are inconsistent with the
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be reliable, although its accuracy and completeness cannot be guaranteed.
This report has not been reviewed or authorized by any regulatory authority. There is no planned schedule or frequency for updating research report relating
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Please contact the primary analyst for valuation methodologies and assumptions associated with the covered companies or price targets.
Disclaimer for U.S. persons only: Research report is a product of Emkay Global Financial Services Ltd., under Marco Polo Securities 15a6 chaperone
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This report is intended for distribution to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the U.S. Securities and Exchange Act, 1934 (the
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Investors. Emkay Global Financial Services Ltd. has entered into a chaperoning agreement with a U.S. registered broker -dealer, Marco Polo Securities Inc.
("Marco Polo"). Transactions in securities discussed in this research report should be effected through Marco Polo or another U.S. registered broker dealer.
This report is intended for [email protected] use and downloaded at 09/21/2023 11:48 AM
Senco Gold (SENCO IN)
India Equity Research | Initiating Coverage
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>.Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research
analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
September 20, 2023 |25
RESTRICTIONS ON DISTRIBUTION
This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state,
country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. Except otherwise restricted by
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such jurisdictions. Specifically, this document does not constitute an offer to or solicitation to any U.S. person for the purchase or sale of any financ ial
instrument or as an official confirmation of any transaction to any U.S. person. Unless otherwise stated, this message should not be construed as official
confirmation of any transaction. No part of this document may be distributed in Canada or used by private customers in United Kingdom.
ANALYST CERTIFICATION BY EMKAY GLOBAL FINANCIAL SERVICES LIMITED (EGFSL)
The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and
their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her compensation was, is,
or will be, directly or indirectly, related to specific recommendations or views expressed in the report. The research analyst (s) primarily responsible of the
content of this research report, in part or in whole, certifies that he or his associated persons1 may have served as an officer, director or employee of the
issuer or the new listing applicant (which includes in the case of a real estate investment trust, an officer of the manageme nt company of the real estate
investment trust; and in the case of any other entity, an officer or its equivalent counterparty of the entity who is respons ible for the management of the
issuer or the new listing applicant). The research analyst(s) primarily responsible for the content of this research report or his associate may have Financial
Interests2 in relation to an issuer or a new listing applicant that the analyst reviews. EGFSL has procedures in place to eli minate, avoid and manage any
potential conflicts of interests that may arise in connection with the production of research reports. The research analyst(s) responsible for this report
operates as part of a separate and independent team to the investment banking function of the EGFSL and procedures are in place to ensure that confidential
information held by either the research or investment banking function is handled appropriately. There is no direct link of EGFSL compensation to any
specific investment banking function of the EGFSL.
1
An associated person is defined as (i) who reports directly or indirectly to such a research analyst in connection with the preparation of the reports; or (ii)
another person accustomed or obliged to act in accordance with the directions or instructions of the analyst.
2
Financial Interest is defined as interest that are commonly known financial interest, such as investment in the securities in respect of an issuer or a new
listing applicant, or financial accommodation arrangement between the issuer or the new listing applicant and the firm or analysis. This term does not
include commercial lending conducted at the arm’s length, or investments in any collective investment scheme other than an issuer or new listing applicant
notwithstanding the fact that the scheme has investments in securities in respect of an issuer or a new listing applicant.
COMPANY-SPECIFIC / REGULATORY DISCLOSURES BY EMKAY GLOBAL FINANCIAL SERVICES LIMITED (EGFSL):
Disclosures by Emkay Global Financial Services Limited (Research Entity) and its Research Analyst under SEBI (Research Analyst) Regulations, 2014 with
reference to the subject company(s) covered in this report-:
1. EGFSL, its subsidiaries and/or other affiliates and Research Analyst or his/her associate/relative’s may have Financial Interest/proprietary positions in
the securities recommended in this report as of September 20, 2023
2. EGFSL, and/or Research Analyst does not market make in equity securities of the issuer(s) or company(ies) mentioned in this Report
Disclosure of previous investment recommendation produced:
3. EGFSL may have published other investment recommendations in respect of the same securities / instruments recommended in this research report
during the preceding 12 months. Please contact the primary analyst listed in the first page of this report to view previous investment
recommendations published by EGFSL in the preceding 12 months.
4. EGFSL, its subsidiaries and/or other affiliates and Research Analyst or his/her relative’s may have material conflict of interest in the securities
recommended in this report as of September 20, 2023
5. EGFSL, its affiliates and Research Analyst or his/her associate/relative’s may have actual/beneficial ownership of 1% or more securities of the subject
company at the end of the month immediately preceding the September 20, 2023
6. EGFSL or its associates may have managed or co-managed public offering of securities for the subject company in the past twelve months.
7. EGFSL, its affiliates and Research Analyst or his/her associate may have received compensation in whatever form including compensation for
investment banking or merchant banking or brokerage services or for products or services other than investment banking or merchant banking or
brokerage services from securities recommended in this report (subject company) in the past 12 months.
8. EGFSL, its affiliates and/or and Research Analyst or his/her associate may have received any compensation or other benefits from the subject
company or third party in connection with this research report.
Emkay Rating Distribution
Ratings
Expected Return within the next 12-18 months.
BUY
Over 15%
HOLD
Between -5% to 15%
SELL
Below -5%
Emkay Global Financial Services Ltd.
CIN - L67120MH1995PLC084899
7th Floor, The Ruby, Senapati Bapat Marg, Dadar - West, Mumbai - 400028. India
Tel: +91 22 66121212 Fax: +91 22 66121299 Web: www.emkayglobal.com
This report is intended for [email protected] use and downloaded at 09/21/2023 11:48 AM
Senco Gold (SENCO IN)
India Equity Research | Initiating Coverage
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>.Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research
analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.
September 20, 2023 |26
OTHER DISCLAIMERS AND DISCLOSURES:
Other disclosures by Emkay Global Financial Services Limited (Research Entity) and its Research Analyst under SEBI (Research Analyst)
Regulations, 2014 with reference to the subject company(s) -:
EGFSL or its associates may have financial interest in the subject company.
Research Analyst or his/her associate/relative’s may have financial interest in the subject company.
EGFSL or its associates and Research Analyst or his/her associate/ relative’s may have material conflict of interest in the subject company. The research
Analyst or research entity (EGFSL) have not been engaged in market making activity for the subject company.
EGFSL or its associates may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately
preceding the date of public appearance or publication of Research Report.
Research Analyst or his/her associate/relatives may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the
month immediately preceding the date of public appearance or publication of Research Report.
Research Analyst may have served as an officer, director or employee of the subject company.
EGFSL or its affiliates may have received any compensation including for investment banking or merchant banking or brokerage services from the subject
company in the past 12 months. . Emkay may have issued or may issue other reports that are inconsistent with and reach different conclusion from the
information, recommendations or information presented in this report or are contrary to those contained in this report. Emkay Investors may visit
www.emkayglobal.com to view all Research Reports. The views and opinions expressed in this document may or may not match or may be contrary with
the views, estimates, rating, and target price of the research published by any other analyst or by associate entities of Emkay; our proprietary trading,
investment businesses or other associate entities may make investment decisions that are inconsistent with the recommendations expressed herein. EGFSL
or its associates may have received compensation for products or services other than investment banking or merchant banking or brokerage services from
the subject company in the past 12 months. EGFSL or its associates may have received any compensation or other benefits from the Subject Company or
third party in connection with the research report. EGFSL or its associates may have received compensation from the subject company in the past twelve
months. Subject Company may have been client of EGFSL or its affiliates during twelve months preceding the date of distribution of the research report and
EGFSL or its affiliates may have co-managed public offering of securities for the subject company in the past twelve months.
This report is intended for [email protected] use and downloaded at 09/21/2023 11:48 AM
NIRAV
MAHENDRA
SHETH
Digitally signed by NIRAV MAHENDRA SHETH
DN: c=IN, st=Maharashtra,
2.5.4.20=b021a3b7ba2f2566f915f35e82167026c49ca773
cabb716b4826b7268cb00640, postalCode=400018,
street=Mumbai,Mumbai,Maharashtra-400018,
pseudonym=ea49f97377da4bacebf6107c6064c20e,
serialNumber=5cbdd61c805572e87e207081a5fbc8d955
28e09b090e868e8fb628970b66eb2b, o=Personal,
cn=NIRAV MAHENDRA SHETH
Date: 2023.09.20 15:46:44 +05'30'