Gold stock under ₹100 with revenue CAGR guidance of up to 40% to keep an eye on

SYNOPSIS:
AJC Jewel Manufacturers announced plans to more than double capacity, expand in India and the UAE, target 30-40 percent revenue CAGR, enter silver jewellery retail, and acquire a 95 percent stake in its UAE unit via share swap.

Shares of a Malappuram, Kerala-based manufacturer and wholesaler of gold jewellery operating on a B2B (Business-to-Business) model are in focus on the stock exchanges, after the company’s management forecast a consolidated revenue of 30-40 percent CAGR.

With a market cap of Rs. 58 crores, shares of AJC Jewel Manufacturers Limited hit an intraday high at Rs. 95.9 on BSE, up by around 1 percent, as against its previous closing price of Rs. 95.

Management Guidance

The management of AJC Jewel Manufacturers Limited has issued its Guidance and Outlook for the upcoming years. The company is undertaking a major capacity expansion initiative, involving substantial capital investment aimed at more than doubling its current production capacity – representing an increase of over 120 percent from existing levels.

At the domestic level, the company is significantly scaling up its primary manufacturing facility in India, targeting an ~80 percent increase in capacity to meet rising demand and support a growing order pipeline from key clients.

Internationally, the company’s recent acquisition in the UAE is expected to add a further 40 percent to its pre-expansion capacity. From a financial perspective, management has projected a consolidated revenue CAGR in the range of 30-40 percent over the coming guidance period.

Further, the company’s Board has also approved a set of strategic initiatives aimed at expanding AJC Jewel Manufacturers Limited’s operational reach and broadening its product portfolio.

The first initiative involves the company’s entry into the silver jewellery retail segment through the incorporation of a new wholly owned subsidiary. This move is designed to diversify the product mix and capture the rising demand for fashion and daily-wear silver jewellery. AJC Jewel Manufacturers Ltd. will subscribe to 90 percent of the subsidiary’s initial paid-up share capital, amounting to Rs. 10 lakh in cash. The new entity will be headquartered in Kerala and will operate a dedicated retail platform for silver jewellery.

The second initiative relates to the formal structuring of the company’s UAE acquisition, which forms a key component of its international expansion strategy. The Board has approved the acquisition of a 95 percent stake in AJC Jewel Manufacturers (FZE), a Sharjah-based entity, thereby making it a subsidiary of the company. The acquisition will be executed for a total consideration of up to Rs. 4 crore.

The consideration will be settled through a share swap, under which the company will issue and allot up to 4,00,000 equity shares with a face value of Rs. 10 each, priced at Rs. 100 per share, on a preferential basis to the promoter, Mr Ashraf P.

Financials & More

AJC Jewel Manufacturers reported a marginal decline in revenue from operations, experiencing a year-on-year decrease of around 7 percent, from Rs. 128 crores in H1 FY25 to Rs. 119 crores in H1 FY26. In contrast, the company’s net profit increased during the same period, from Rs. 1 crores to Rs. 3 crores, reflecting an impressive rise of nearly 200 percent YoY.

AJC Jewel Manufacturers Limited is engaged in the business of manufacturing and designing a wide range of wholesale gold jewellery, including plain gold, studded jewellery (with Cubic Zirconia and coloured stones, and personalised “named” jewellery, available in both 22-karat and 18-karat gold. It operates on a B2B (Business-to-Business) model, catering to a network of jewellery dealers, showrooms, and retailers across India. 

The company operates from an organised 21,780 sq. ft. manufacturing facility in Inkel Greens Edu City. This integrated setup is equipped with modern machinery and technology, including 3D printers for CAD-to-CAM modelling, wax injectors, casting machines, and laser engraving tools, enabling it to produce a wide variety of designs and fulfil bulk orders.

Written by Shivani Singh

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