SBI Securities has recommended subscribing to Advit Jewels’ IPO, citing the company’s traditional handcrafted jewellery portfolio and relatively higher operating margins compared to B2B peers.

The brokerage noted that while the company’s working capital cycle remains longer due to high inventory requirements, Advit Jewels has reported positive cash flow from operations in 9MFY26 and started repaying borrowings through internal accruals.

SBI Securities said the company plans to completely retire its debt as of 9MFY26 through IPO proceeds, which could improve profitability. The company recorded a CAGR of 63.7%, 70.5% and 56.3% in Revenue, EBITDA and PAT respectively during FY23-25.

At the upper price band, the issue is valued at an annualised 9MFY26 P/E multiple of 18.6x. SBI Securities said, “Although, this multiple is higher than its peers, it is in line when adjusted for higher growth across revenue and profitability.” The brokerage added, “We recommend to SUBSCRIBE to the issue.”