Equilateral Enterprises Limited

Consumer Cyclical — Luxury Goods · BSE

₹8.45₹0.00 (0.00%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, 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, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Equilateral Enterprises Limited primarily engages in the trading of gems and jewelry, and diamonds in India. It also trades in ornaments that contains diamonds, gold, silver, and other precious or semi-precious stones.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees5

Annual revenue₹59 Cr

How does it make money?

Turns over ₹59 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹11.76 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹11.76 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 2.0% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +3315% while net margin moved -65% 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+3315%

Margin effect-65%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.1% is weak

Quality vs. Valuation

Company Quality

46/ 100

Average

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

Valuation

54/ 100

Fair

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

84.5x

3Y Median

697.5x

40 monthly readings · mean 608.1x · range 44.5x–1606.0x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 88% below its 3y median of 697.5x. 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 22% above the peer median of 69.2x.

vs. its own history

Cheap

697.5x median over 40 months · -88%

vs. sector peers

Expensive

69.2x median of 4 peers · +22%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

35.0x

PEG

0.65

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -66.4% to 0.5% over 3 years.
Return on capital is rising
ROCE has improved from -10.2% to 2.0%.
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 4.75x — 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.
🔴Inventory building faster than salesFinancial
Inventory up 21041% against revenue up 3315% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 39% over 3 years.
🟡Short-term liquidity is tightFinancial
Current ratio of -0.54 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -66.4% to 0.5%. 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 88% 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?

Leverage amplifies any setback
Debt/Equity of 4.75x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 22% above the peer median. That premium needs a reason that persists, or it closes.
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 168% a year✓ 224.4% CAGR
Latest reported year was -37.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -2%✓ 0.5%
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✓ 1.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 2.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

2 / 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 · 2 neutral · 6 weak

Market Cap

₹10 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

84.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.94x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.1

Profitable

Profitable on a per-share basis

ROE

2.1%

Weak

Weak capital efficiency

ROCE

2.0%

Weak

Low return on total capital employed

Debt/Equity

4.75x

High

High leverage

Revenue Growth (YoY)

-37.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-69.2%

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

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-1.3%

Weak

Thin margins leave little room for error

Net Margin

0.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

-0.54

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.88

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

8.5 / 11.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹11 Cr	₹15 Cr	₹59 Cr	+224.4%
EBITDA	-₹1 Cr	₹0 Cr	₹0 Cr	₹0 Cr	—
EBITDA Margin	-66.4%	0.2%	1.2%	0.5%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+129.4%
EPS	₹0.02	₹0.02	₹0.15	₹0.19	+128.6%
ROE	0.2%	0.2%	1.6%	2.1%	—
ROCE	-10.2%	0.2%	1.6%	2.0%	—
Total Debt	₹0 Cr	₹0 Cr	₹1 Cr	₹1 Cr	+11.7%
Free Cash Flow	₹6 Cr	₹1 Cr	₹6 Cr	₹4 Cr	-16.1%

🟢 Revenue has grown at 224.4% a year over 3 years.

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

🟢 EBITDA Margin has risen from -66.4% to 0.5% over 3 years (+66.8 pts).

🟢 PAT (Net Profit) has grown at 129.4% a year over 3 years.

🟢 EPS has grown at 128.6% a year over 3 years.

🟢 ROE has risen from 0.2% to 2.1% over 3 years (+1.9 pts).

🟢 ROCE has risen from -10.2% to 2.0% over 3 years (+12.2 pts).

🔴 Total Debt has grown at 11.7% a year over 3 years.

🔴 Free Cash Flow has shrunk at 16.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹23 Cr

Total Liabilities

₹12 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.7%

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

Equilateral Enterprises Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

Equilateral Enterprises declares AGM voting results for FY26

scanx.trade, 29 SeptResults

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

Equilateral Enterprises Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 07 Sept

Ardee Industries Ltd | Stock Share Price Live

MarketSmith India, 19 Aug

Equilateral Enterprises sets Sept 29 AGM; FY26 revenue up 267%

scanx.trade, 05 SeptResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Kalpa Commercial (BSE:539014) - Stock Analysis

Simply Wall Street, 01 Dec

Watch Items

Revenue growth is negative (-37.4%) 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

MiddlingGrowth · Valuation

WeakBusiness Quality · Financial Health · 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.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑