Asian Star Company Limited

Consumer Cyclical — Luxury Goods · NSE

₹610.10+₹2.95 (+0.49%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

The 60-second version of Asian Star Company Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Asian Star Company Limited manufactures and sells diamond jewelry worldwide. It operates through two segments, Diamonds and Jewellery. The company provides generic, certified, mine-origin programme, and special-cut diamonds.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees1,500

Annual revenue₹2,882 Cr

How does it make money?

Turns over ₹2,882 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 1,500 employees supports ₹1.92 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.92 Cr

Who are its competitors?

The closest listed comparisons in its industry are TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 4.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -36% while net margin moved -24% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-36%

Margin effect-24%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 13.7% a year
✗ Profit has declined at 21.2% a year
✗ Profit fell 37.7% in the latest year

Quality vs. Valuation

Company Quality

39/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

67/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

30.7x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 56% below the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

69.2x median of 4 peers · -56%

vs. generic bands

Fair

15x–35x

EV/EBITDA

18.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 21% over 3 years.
Very low debt
Debt/Equity of 0.30x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 5.8% to 2.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 8.5% to 4.0% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 51% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 21% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 56% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹83 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 6.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 5.8% to 2.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 1%✓ 2.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 6.7x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✓ 3.4x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹83 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 4.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹977 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

30.7x

Fair

Fairly valued against the generic band

P/B Ratio

0.59x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹19.87

Profitable

Profitable on a per-share basis

ROE

2.4%

Weak

Weak capital efficiency

ROCE

4.0%

Weak

Low return on total capital employed

Debt/Equity

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

-9.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-37.7%

Falling

Profits are shrinking

Dividend Yield

0.25%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹83 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.1%

Weak

Thin margins leave little room for error

Net Margin

1.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.16

Comfortable

Healthy short-term liquidity

52W Range Position

34%

Mid-range

Technical Snapshot

RSI (14)

23.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,478 Cr	₹3,523 Cr	₹2,956 Cr	₹2,882 Cr	-13.7%
EBITDA	₹154 Cr	₹129 Cr	₹93 Cr	₹74 Cr	-21.8%
EBITDA Margin	3.4%	3.7%	3.1%	2.6%	—
PAT (Net Profit)	₹83 Cr	₹77 Cr	₹43 Cr	₹40 Cr	-21.2%
EPS	₹51.63	₹48.25	₹26.98	₹25.25	-21.2%
ROE	5.8%	5.1%	2.8%	2.4%	—
ROCE	8.5%	8.1%	5.0%	4.0%	—
Total Debt	₹628 Cr	₹741 Cr	₹528 Cr	₹493 Cr	-7.7%
Free Cash Flow	₹89 Cr	-₹83 Cr	₹224 Cr	₹83 Cr	-2.1%

🔴 Revenue has shrunk at 13.7% a year over 3 years.

🔴 EBITDA has shrunk at 21.8% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 2.6% over 3 years.

🔴 PAT (Net Profit) has shrunk at 21.2% a year over 3 years.

🔴 EPS has shrunk at 21.2% a year over 3 years.

🔴 ROE has fallen from 5.8% to 2.4% over 3 years (-3.3 pts).

🔴 ROCE has fallen from 8.5% to 4.0% over 3 years (-4.5 pts).

🟢 Total Debt has shrunk at 7.7% a year over 3 years.

🔴 Free Cash Flow has shrunk at 2.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,473 Cr

Total Liabilities

₹815 Cr

Cash & Equivalents

₹100 Cr

Operating Cash Flow

₹90 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

4.2%

Insider Holding

94.8%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

21 Sept 2026

Peer Comparison

Company	P/E	ROE
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 positive1 mixed4 general

AI Trade Reversal Pierces Asia’s Star Picks-and-Shovels Stocks

Livemint, 18 Oct

Asian Star Company Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 21 Sept

Asian Star Company Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 28 Aug

Asian Star Co Nine Monthly Results, Nine Monthly Earnings for Asian Star Co

The Economic Times, 25 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Asian Star shareholders approve ₹1.50 dividend at 32nd AGM

scanx.trade, 28 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

ASTAR Stock Price and Chart — NSE:ASTAR

TradingView, 20 Apr

Watch Items

Revenue growth is negative (-9.6%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation · Risk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; ROCE stays above 8% · see Key things to watch ↑