Devine Impex Limited

Consumer Cyclical — Luxury Goods · BSE

₹8.00₹0.00 (0.00%)

DalalBaazaar Score

43 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:03 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 Devine Impex Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Devine Impex Limited engages in the trading of bullion, gems, jewellery, gold, and diamonds in India. It offers diamond pendants and gold rings; and trades in stocks/shares.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees2

Annual revenue₹2 Cr

How does it make money?

Turns over ₹2 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹85.1 lakh of revenue a year, the signature of a people-led business.

EBITDA margin2.4%

Net margin1.8%

Revenue / employee₹85.1 lakh

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.

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%

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

What is its competitive advantage?Little sign of one

Returns on capital of 0.3% 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.

ROCE0.3%

ROE0.2%

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 -4% while net margin moved -35% 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-4%

Margin effect-35%

DalalBaazaar Score

43/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.5% a year
✗ Profit has declined at 14.6% a year
✗ Profit fell 5.8% in the latest year

Quality vs. Valuation

Company Quality

37/ 100

Weak

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

Valuation

47/ 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

88.9x

3Y Median

254.0x

40 monthly readings · mean 233.1x · range 127.4x–335.7x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 65% below its 3y median of 254.0x. 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 28% above the peer median of 69.2x.

vs. its own history

Cheap

254.0x median over 40 months · -65%

vs. sector peers

Expensive

69.2x median of 4 peers · +28%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

88.9x

P/B

0.58x

EV/EBITDA

189.6x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 88.9x the stock trades 65% below its own median of 254.0x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 28% against revenue growth of -4% — customers are taking longer to pay.

Red Flags

3 items require attention · 3 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 38% over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 28% against revenue up -4% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 65% 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.
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?

Sales are being booked faster than collected
Receivables are up 28% against revenue up -4%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 28% above the peer median. That premium needs a reason that persists, or it closes.
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 0%✓ 2.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 0.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 254.0x✓ 88.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

3 / 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
✓ 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

₹8 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

88.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.58x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.09

Profitable

Profitable on a per-share basis

ROE

0.2%

Weak

Weak capital efficiency

ROCE

0.3%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

136.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-5.8%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹8

Operating Margin

17.7%

Good

Healthy core-business profitability

Net Margin

4.4%

Average

Average bottom-line conversion

Current Ratio

224.15

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.53

Defensive

Steadier than the market

52W Range Position

18%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

8.1 / 8.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹2 Cr	₹2 Cr	₹2 Cr	-1.5%
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-8.6%
EBITDA Margin	3.0%	2.9%	2.4%	2.4%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-14.6%
EPS	₹0.05	₹0.04	₹0.03	₹0.03	-15.7%
ROE	0.4%	0.3%	0.2%	0.2%	—
ROCE	0.4%	0.4%	0.4%	0.3%	—
Free Cash Flow	₹0 Cr	-₹0 Cr	₹0 Cr	-₹0 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.5% a year).

🔴 EBITDA has shrunk at 8.6% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 2.4% over 3 years.

🔴 PAT (Net Profit) has shrunk at 14.6% a year over 3 years.

🔴 EPS has shrunk at 15.7% a year over 3 years.

🟡 ROE has held roughly flat at 0.2% over 3 years.

🟡 ROCE has held roughly flat at 0.3% over 3 years.

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

Balance Sheet & Cash Flow — FY2026

Total Assets

₹14 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.9%

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 mixed1 general

Q1 results: Tata Motors, IRCTC, HAL, Abbott India, and 545 more on Aug 12

Business Standard, 12 AugResults

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

DEVINE Stock Price and Chart — BSE:DEVINE

TradingView, 12 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
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

🔴Business QualityWeak7.5/20

🟢Financial HealthStrong13.2/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak4.5/15

🟡ValuationFair9.7/15

🟡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.

This thesis breaks if

✓EBITDA margin holds above 0%2.4%
✗Free cash flow remains positive-₹0 Cr
✗ROCE stays above 8%0.3%
✓Valuation vs its own median of 254.0x88.9x today