BlueStone Jewellery IPO

BlueStone, India's second-largest omni-channel jewellery brand, holds a 26-30% market share in the omni-channel industry as of fiscal 2024. Their omnichannel strategy builds trust by offering both online visibility and offline touch-and-feel experiences for high-ticket jewellery, while also enabling seamless inventory management.

The company offers same-day delivery and ‘Try at home’ service for its products which acts as a differentiator and brings repeat customers. The repeat revenue ratio (sales generated by repeat customers) was 39.83% in fiscal 2024.

BlueStone has an extensive online marketing strategy. They are among the top four jewellery retailers in India who have the least marketing spend in fiscal 2024.

BlueStone’s entire merchandising strategy operates on Artificial Intelligence and machine learning. This helps them focus on areas that result in higher gross margins. Doing this resulted in an increase in gross margin from 32.27% in fiscal 2022 to 40.41% in fiscal 2024. n

The jewellery business depends on consumers changing tastes and preferences. While BlueStone has a team of 25 in-house designers who keep up with the trend, the failure to update their collection and introduce new designs timely can affect the business adversely.

BlueStone incurred a loss of ₹142.2 crores in FY 24. Similarly, the company has also experienced negative cash flows in the past fiscal and may continue to do so.

BlueStone’s business largely depends on timely procurement of raw materials like gold bullions, diamonds and other precious stones. Untimely procurement of these products may affect the business adversely. Similarly, if gold prices rise significantly it can have a negative impact on the sales volume.