Darshan Orna Limited

Consumer Cyclical — Luxury Goods · BSE

₹2.07−₹0.01 (−0.48%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, 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, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Darshan Orna Limited wholesales and trades gold and silver jewelry and ornaments in India. It offers traditional, Indo-western, and modern jewelry products, such as chains, rings, ear chains, earrings, bracelets, anklets, zudas, bangles, toe rings, and necklaces.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees7

Annual revenue₹71 Cr

How does it make money?

Turns over ₹71 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 7 employees supports ₹10.21 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹10.21 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 2.6% 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.

Peer median ROE25.9%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +417% while net margin moved +116% 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+417%

Margin effect+116%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.9% is weak

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

76/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

23.0x

3Y Median

29.6x

40 monthly readings · mean 41.6x · range 4.4x–115.5x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 22% below its 3y median of 29.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 67% below the peer median of 69.2x.

vs. its own history

Cheap

29.6x median over 40 months · -22%

vs. sector peers

Cheap

69.2x median of 4 peers · -67%

vs. generic bands

Fair

15x–35x

EV/EBITDA

20.0x

PEG

0.19

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from -0.4% to 1.4% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 2.61x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 495% against revenue up 417% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹15 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 100% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -0.4% to 1.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 22% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 67% 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?

Leverage amplifies any setback
Debt/Equity of 2.61x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 495% against revenue up 417%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 55% a year✓ 72.9% CAGR
Latest reported year was -15.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 1.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹15 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 2.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

3 good · 3 neutral · 5 weak

Market Cap

₹21 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.0x

Fair

Fairly valued against the generic band

P/B Ratio

0.53x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.09

Profitable

Profitable on a per-share basis

ROE

2.9%

Weak

Weak capital efficiency

ROCE

2.6%

Weak

Low return on total capital employed

Debt/Equity

2.61x

High

High leverage

Revenue Growth (YoY)

-15.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

39.7%

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

-₹15 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.7%

Weak

Thin margins leave little room for error

Net Margin

1.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

7.17

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.16

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

2.1 / 2.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14 Cr	₹21 Cr	₹22 Cr	₹71 Cr	+72.9%
EBITDA	-₹0 Cr	-₹0 Cr	₹1 Cr	₹1 Cr	—
EBITDA Margin	-0.4%	-1.3%	4.0%	1.4%	—
PAT (Net Profit)	₹0 Cr	₹3 Cr	₹0 Cr	₹1 Cr	+123.4%
EPS	₹0.04	₹0.53	₹0.09	₹0.07	+20.8%
ROE	0.4%	14.1%	2.4%	1.8%	—
ROCE	0.9%	16.4%	3.1%	2.6%	—
Total Debt	—	₹4 Cr	₹6 Cr	₹1 Cr	—
Free Cash Flow	₹0 Cr	₹12 Cr	-₹2 Cr	-₹15 Cr	—

🟢 Revenue has grown at 72.9% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹1 Cr.

🟢 EBITDA Margin has risen from -0.4% to 1.4% over 3 years (+1.8 pts).

🟢 PAT (Net Profit) has grown at 123.4% a year over 3 years.

🟢 EPS has grown at 20.8% a year over 3 years.

🟢 ROE has risen from 0.4% to 1.8% over 3 years (+1.4 pts).

🟢 ROCE has risen from 0.9% to 2.6% over 3 years (+1.7 pts).

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹15 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹41 Cr

Total Liabilities

₹5 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹14 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.7%

Corporate Actions

Ex-Dividend Date

20 Aug 2018

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 mixed5 general

Compare BCC FINANCE with

Equitymaster, 16 Oct

Darshan Orna (BSE: 539884): Auditor Change, AGM and June Quarter

Kalkine India, 06 OctResults

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

Darshan Orna appoints P H Shah and Co. as statutory auditor for five years

scanx.trade, 29 Sept

SEBI Imposes ₹3.10 Crore Penalty on 5 in Darshan Orna Telegram Stock Manipulation Case

Moneylife, 18 May

SEBI cracks down on alleged stock pump and dump scheme, imposes Rs 3.1 crore penalty

Moneycontrol.com, 15 May

SEBI Slaps ₹3.1 Crore Penalty Over Alleged Telegram-Based 'Pump And Dump' Scheme In Darshan Orna Shares

LiveLawBiz, 16 May

Watch Items

Revenue growth is negative (-15.7%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingFinancial Health

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑