Augmont Enterprises IPO

Strengths · 8

• 01Profit has grown strongly for three years, from Rs 75.97 crore in FY2024 to Rs 227.19 crore in FY2025 and Rs 348.30 crore in FY2026.
• 02Return ratios are among the highest in this batch of issues. RoCE was 70.10% and RoNW was 69.47%.
• 03The company is almost debt free. Total borrowing was only Rs 12.67 crore against a net worth of Rs 926.87 crore as on 31 March 2026, and borrowing has come down every year from Rs 54.86 crore in FY2024.
• 04The issue is priced moderately on earnings. At the upper band of Rs 788 the P/E is about 20.67 times on an EPS of Rs 38.12.
• 05The business covers the full chain, from refining to bullion trading to digital gold to jewellery making, so it earns at more than one stage.
• 06The reach is large, with presence in 24 states, over 5,223 registered business members and more than 4.96 crore registered digital gold customers as on 31 March 2026.
• 07It owns real infrastructure, with refining units at Rudrapur and Mumbai and a jewellery manufacturing unit at Sitapur SEZ, Jaipur.
• 08Net worth more than doubled in one year, from Rs 422.94 crore to Rs 926.87 crore.

Risks · 8

• 01The profit margin is extremely thin. PAT margin was only 0.34%, because most of the reported income is bullion turnover where the gold itself is the bulk of the value. A very small adverse movement can wipe out the profit.
• 02The total income figure of Rs 94,282.47 crore is bullion trading turnover and should not be read like the revenue of a normal manufacturing company. It makes the business look far bigger than the actual value it adds.
• 03Total assets fell from Rs 1,857.31 crore in FY2025 to Rs 1,256.98 crore in FY2026, a drop of about 32% in one year.
• 04The entire fresh money, Rs 465 crore, goes into working capital, inventory and advance margin for buying stock. None of it adds new capacity.
• 05The business carries direct gold price risk. Holding large bullion inventory means a sharp fall in gold price can cause losses on stock.
• 06Digital gold sits outside the regulatory framework that covers exchange traded products, and any change in how it is regulated or taxed would affect a key growth area.
• 07Competition is heavy and comes from banks, large jewellery chains, fintech apps and other bullion houses, many with deeper pockets.
• 08Promoter holding is spread across nine family members and comes down from 92.75% to 81.91% after the issue.

Augmont Enterprises Limited was started in October 2012. It is an integrated gold and silver company that works with both businesses and ordinary consumers. It is present across almost the whole gold and silver chain, from buying and refining the metal to bullion trading, digital gold, jewellery making, export sales and technology support for gold backed loans.

The company runs two platforms. Augmont SPOT is for businesses, where jewellers, bullion dealers and manufacturers buy and sell bullion electronically and take physical delivery. Augmont Gold For All is for consumers, who can buy, sell and store gold and silver in digital form, invest through monthly plans and buy coins.

As on 31 March 2026 the company was present in 24 states, had more than 5,223 registered business members, and had served over 4.96 crore registered digital gold customers directly and through partners. It has gold and silver refining units at Rudrapur and Mumbai and a jewellery manufacturing unit at Sitapur SEZ in Jaipur. As on 31 March 2026 it had 297 employees.

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