Lalithaa Jewellery vs Horizon IPO: Analysts decode better bet for investors

Lalithaa Jewellery vs Horizon IPO: With two major initial public offerings (IPOs), namely Horizon Industrial Parks and Lalithaa Jewellery Mart, closing for bids today, August 19, the key question is where investors should place their bets. 

 

Ventura Securities’ Head of Research Vinit Bolinjkar takes a selective approach, preferring businesses where valuations leave enough room for the underlying franchise to play out. Among the two issues, he sees Lalithaa Jewellery Mart as the preferred bet, while it remains cautious on Horizon Industrial Parks.

 

Ventura has given an ‘Apply’ rating to Lalithaa Jewellery Mart. At the upper end of the offer price of ₹201, the company is valued at around 11 times FY26 earnings, a significant discount to listed peers such as Kalyan Jewellers, Senco Gold and Titan. 

 

 

Ventura highlighted Lalithaa’s scale, with revenue of around ₹25,024 crore in FY26, 61 stores across 51 cities and a strong presence in Tier-2 and Tier-3 markets. Its customer savings scheme is another attraction, with customer advances rising to ₹5,043 crore and providing a source of largely interest-free working capital. The brokerage, however, flagged risks including the sharp rise in FY26 profit following gold price gains, negative operating cash flow, higher inventory days and the company’s exposure to Tamil Nadu. It also noted the unresolved GST demand of around ₹1,066 crore and warned that margins could moderate if gold prices consolidate.

 

Lalithaa Jewellery Mart's ₹1,700-crore IPO opened for subscription on August 17 and will conclude on August 19. The company has fixed a price band for the issue at ₹190-201 per share. At the upper end of the price band, the company eyes a valuation of around ₹11,250 crore. Lalithaa Jewellery Mart IPO comprises a fresh issue of shares worth up to ₹1,200 crore and an Offer For Sale (OFS) of shares worth up to ₹500 crore.

 

Meanwhile, Ventura has recommended investors 'Pass' on Horizon Industrial Parks and consider the company again after listing. While the platform has the backing of Blackstone and owns 45 properties spanning 58 million square feet across 10 cities, the financial profile remains a concern. 

 

Revenue tripled to ₹768 crore in FY26, but the company reported a ₹204 crore loss. Debt stood at ₹6,884 crore against a post-issue market capitalisation of about ₹17,300 crore. Ventura also flagged customer concentration, with the top 10 customers accounting for 53 per cent of revenue. The weak subscription response, at around 0.25 times on the final day, further adds to the brokerage’s caution.

 

Horizon Industrial Parks’ ₹2,600-crore IPO opened on August 17 and will close on August 19. The price band has been fixed at Rs 57-60 per share. The IPO comprises entirely a fresh issue of equity shares, with no offer-for-sale (OFS) component. At the upper price band, the issue values the company at a post-issue market capitalisation of around Rs 17,298 crore.

 

Another analyst Harshal Dasani, head of business at INVasset PMS, said that between the two, his preference would be Lalithaa Jewellery. 

 

"The business enters the market with stronger earnings visibility, an established retail franchise and a more proven operating model. That makes the investment case easier to underwrite from current profitability rather than relying heavily on a future turnaround. Horizon Industrial Parks has a credible long-term logistics and warehousing opportunity, and debt reduction could improve its financial profile. But the business is still more dependent on execution, occupancy and balance-sheet improvement. On present risk-reward, Lalithaa looks like the cleaner pick," he added.

 

Disclaimer: Views and outlooks shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.