Risks
Key business risks for Shanti Gold International Ltd. include:
Volatility in Gold and Diamond Prices: Fluctuations in commodity prices directly impact raw material costs, inventory valuation, and profitability.
Economic Downturns: Jewellery is a discretionary purchase, making demand highly susceptible to economic slowdowns or recessions.
Intense Competition: The highly fragmented nature of the market leads to intense competition on pricing, design, and purity.
Regulatory Changes: Changes in import duties, Goods and Services Tax (GST) rates, or hallmarking regulations can impact operations and costs.
Changing Consumer Preferences: Shifts in fashion trends and designs can lead to inventory obsolescence.
Financing Costs: High working capital requirements due to inventory can be exposed to interest rate fluctuations.