Banaras Beads Limited

Consumer Cyclical — Footwear & Accessories · NSE

₹114.55₹0.00 (0.00%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Banaras Beads Limited engages in the manufacture and sale of glass beads, necklaces, imitation jewelry, and accessories under the De-Lemon brand in India, the United States, South Africa, the United Kingdom, Ireland, Germany, Europe, the Middle East, and Africa.

IndustryFootwear & Accessories

SectorConsumer Cyclical

Employees250

Annual revenue₹24 Cr

How does it make money?

Turns over ₹24 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 250 employees supports ₹9.7 lakh of revenue a year, the signature of a people-led business.

EBITDA margin18.3%

Net margin7.3%

Revenue / employee₹9.7 lakh

Who are its competitors?

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

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 4.6% 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.

ROCE4.6%

ROE3.1%

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -6% while net margin moved -25% 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-6%

Margin effect-25%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.2% a year
✗ Profit has declined at 11.3% a year

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

48/ 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

40.5x

3Y Median

27.0x

40 monthly readings · mean 28.1x · range 21.2x–44.9x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 50% above its 3y median of 27.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 42% below the peer median of 69.2x.

vs. its own history

Expensive

27.0x median over 40 months · +50%

vs. sector peers

Cheap

69.2x median of 4 peers · -42%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

40.5x

P/B

1.31x

EV/EBITDA

21.5x

PEG

2.33

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Debt is rising
Total debt is up 6964% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 6.8% to 4.6% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 34% against revenue growth of -6% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 45% against revenue growth of -6% — stock may not be moving.
Valuation above its historical average
At 40.5x the stock trades 50% above its own median of 27.0x.

Red Flags

6 items require attention · 1 high · 5 watch

🔴Debt has risen sharplyFinancial
Total debt is up 6964% over 3 years, from ₹0 Cr to ₹21 Cr.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 7.5x to 4.7x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹13 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 30% over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 34% against revenue up -6% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 45% against revenue up -6% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 42% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 4.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 34% against revenue up -6%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 50% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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 16%✓ 18.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹13 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 4.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 4.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

6 / 11 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 2 neutral · 4 weak

Market Cap

₹76 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

40.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.31x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.83

Profitable

Profitable on a per-share basis

ROE

3.1%

Weak

Weak capital efficiency

ROCE

4.6%

Weak

Low return on total capital employed

Debt/Equity

0.36x

Low

Conservative leverage

Revenue Growth (YoY)

45.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

17.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹13 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹114.55

Operating Margin

14.5%

Average

Average margins

Net Margin

6.7%

Average

Average bottom-line conversion

Current Ratio

2.67

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.44

Defensive

Steadier than the market

52W Range Position

27%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

113.7 / 113.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

38.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹26 Cr	₹27 Cr	₹30 Cr	₹24 Cr	-2.2%
EBITDA	₹5 Cr	₹5 Cr	₹6 Cr	₹4 Cr	-2.8%
EBITDA Margin	18.6%	18.0%	20.3%	18.3%	—
PAT (Net Profit)	₹3 Cr	₹3 Cr	₹3 Cr	₹2 Cr	-11.3%
EPS	₹3.83	₹4.15	₹4.65	₹2.69	-11.1%
ROE	4.8%	5.1%	5.5%	3.1%	—
ROCE	6.8%	6.9%	8.3%	4.6%	—
Total Debt	₹0 Cr	₹3 Cr	₹9 Cr	₹21 Cr	+313.4%
Free Cash Flow	-₹6 Cr	-₹4 Cr	₹2 Cr	-₹13 Cr	—

🔴 Revenue has shrunk at 2.2% a year over 3 years.

🔴 EBITDA has shrunk at 2.8% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 18.3% over 3 years.

🔴 PAT (Net Profit) has shrunk at 11.3% a year over 3 years.

🔴 EPS has shrunk at 11.1% a year over 3 years.

🔴 ROE has fallen from 4.8% to 3.1% over 3 years (-1.7 pts).

🔴 ROCE has fallen from 6.8% to 4.6% over 3 years (-2.2 pts).

🔴 Total Debt has grown at 313.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹81 Cr

Total Liabilities

₹23 Cr

Total Debt

₹21 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹5 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.3%

Corporate Actions

Ex-Dividend Date

07 Feb 2025

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 mixed5 general

Banaras Beads board meeting scheduled for October 15, 2026

scanx.trade, 15 Oct

Banaras Beads Ltd is Rated Sell

MarketsMojo, 12 Oct

Banaras Beads: Best Stock in Its Sector? Key Metrics

Univest, 24 Sept

Banaras Beads Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 13 Sept

Banaras Beads: 7 Stock Signals to Watch

Univest, 22 Sept

Banaras Beads NSE:BANARBEADS Trading Window Closure Q2 FY27

Kalkine India, 19 SeptResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟡Financial HealthAdequate11.8/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak6.2/15

🔴ValuationDemanding6.2/15

🟡RiskModerate5.4/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 16%18.3%
✗Debt / EBITDA falls below 3x4.6x
✗Free cash flow remains positive-₹13 Cr
✗ROCE stays above 8%4.6%
✓Interest cover stays above 4x4.7x