Eighty Jewellers Limited

Consumer Cyclical — Luxury Goods · BSE

₹44.00₹0.00 (0.00%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, 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, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Eighty Jewellers Limited engages in the trading and retail of various jewelry in India.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees38

Annual revenue₹128 Cr

How does it make money?

Turns over ₹128 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 38 employees supports ₹3.38 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin11.8%

Net margin7.6%

Revenue / employee₹3.38 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.

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?Some evidence

ROCE of 39.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE39.0%

ROE30.5%

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 +37% while net margin moved +403% 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+37%

Margin effect+403%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.17 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

88/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

4.6x

3Y Median

26.4x

40 monthly readings · mean 26.8x · range 15.2x–39.2x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 83% below its 3y median of 26.4x. 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 93% below the peer median of 69.2x.

vs. its own history

Cheap

26.4x median over 40 months · -83%

vs. sector peers

Cheap

69.2x median of 4 peers · -93%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

4.6x

P/B

1.22x

EV/EBITDA

4.8x

PEG

0.05

Dividend Yield

0.45%

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 3.0% to 11.8% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 5.9% to 26.5%.
Return on capital is rising
ROCE has improved from 11.1% to 39.0%.
High return on capital employed
ROCE of 39.0% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 4.6x the stock trades 83% below its own median of 26.4x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 169% over 3 years — worth checking what it funded.
Inventory building faster than sales
Inventory is up 97% against revenue growth of 37% — stock may not be moving.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 169% over 3 years, from ₹11 Cr to ₹30 Cr.
🟡Inventory building faster than salesFinancial
Inventory up 97% against revenue up 37% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 39.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 3.0% to 11.8%. 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 83% 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 93% 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?

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.

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

1Revenue growth stays above 8% a year✓ 11.0% CAGR
Latest reported year was 23.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 36%✓ 39.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹45 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.6x

Cheap

Cheap against the generic band

P/B Ratio

1.22x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹9.55

Profitable

Profitable on a per-share basis

ROE

30.5%

Strong

Strong capital efficiency

ROCE

39.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.81x

Moderate

Moderate leverage

Revenue Growth (YoY)

23.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

998.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.45%

Modest

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

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹44

ROA

14.1%

Good

Assets are working hard

Operating Margin

13.5%

Average

Average margins

Net Margin

7.6%

Average

Average bottom-line conversion

Current Ratio

2.02

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.17

Defensive

Steadier than the market

52W Range Position

79%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

45.7 / 41.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

39.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹94 Cr	₹81 Cr	₹110 Cr	₹128 Cr	+11.0%
EBITDA	₹3 Cr	₹3 Cr	₹4 Cr	₹15 Cr	+74.3%
EBITDA Margin	3.0%	3.4%	4.0%	11.8%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹2 Cr	₹10 Cr	+90.2%
EPS	₹1.39	₹1.43	₹1.82	—	—
ROE	5.9%	5.8%	6.8%	26.5%	—
ROCE	11.1%	10.2%	14.8%	39.0%	—
Total Debt	₹11 Cr	₹7 Cr	₹27 Cr	₹30 Cr	+39.0%
Free Cash Flow	-₹10 Cr	₹1 Cr	-₹22 Cr	₹4 Cr	—

🟢 Revenue has grown at 11.0% a year over 3 years.

🟢 EBITDA has grown at 74.3% a year over 3 years.

🟢 EBITDA Margin has risen from 3.0% to 11.8% over 3 years (+8.7 pts).

🟢 PAT (Net Profit) has grown at 90.2% a year over 3 years.

🟢 ROE has risen from 5.9% to 26.5% over 3 years (+20.5 pts).

🟢 ROCE has risen from 11.1% to 39.0% over 3 years (+27.9 pts).

🔴 Total Debt has grown at 39.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹10 Cr to ₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹74 Cr

Total Liabilities

₹37 Cr

Total Debt

₹30 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.4%

Corporate Actions

Dividend Rate

₹0.2

Ex-Dividend Date

06 Mar 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

2 positive4 general

Compare with

Equitymaster, 30 Sept

Jewellery Penny Stocks in India 2027: 5 Top Picks

Univest, 16 Sept

Eighty Jewellers accepts resignation of Company Secretary Rishika Verma

scanx.trade, 13 Jun

Eighty Jewellers Ltd

Equitypandit, 13 Feb

2:1 Bonus + Stock Splits Of 1:10, 1:2, 1:5 + Dividend Stocks In March 2026: 8 Stocks To Trend Next Month

Goodreturns, 22 FebCapital return

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

BEL, SBI Life shares to turn ex-dividend today; payout details, dividend history & more

Business Today, 06 MarCapital return

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

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate12.4/20

🟡Financial HealthAdequate12/20

🟢GrowthStrong16.1/20

🟢ProfitabilityStrong11.8/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 8% a year11.0% CAGR
✓EBITDA margin holds above 10%11.8%
✓Free cash flow remains positive₹4 Cr
✓Debt / EBITDA stays below 2x2.0x
✓ROCE stays above 36%39.0%