Risks
SJ Corporation Ltd., like other companies in the sector, faces several risks:
Commodity Price Volatility: Fluctuations in the prices of raw diamonds, gold, and other precious metals can impact profitability.
Economic Slowdown: Jewellery is a discretionary purchase; an economic downturn can significantly reduce demand.
Regulatory Changes: Changes in import/export duties, taxation (e.g., GST), hallmarking regulations, or anti-money laundering (AML) laws can affect operations.
Intense Competition: The fragmented nature of the market leads to significant price and design competition.
Changing Consumer Preferences: Evolving tastes (e.g., preference for lighter jewellery, lab-grown diamonds) require adaptability.
Supply Chain Disruptions: Global events can impact the availability and pricing of raw materials.