PNGS Gargi Fashion Jewellery Limited

Consumer Cyclical — Luxury Goods · BSE

₹603.00+₹5.50 (+0.92%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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 PNGS Gargi Fashion Jewellery Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

PNGS Gargi Fashion Jewellery Limited engages in the trading of fashion and costume jewellery, articles of silver, and other articles in India. It offers certified sterling silver jewellery, brass and copper jewellery, idols, and other gift articles.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees65

Annual revenue₹149 Cr

How does it make money?

Turns over ₹149 Cr a year. Of every ₹100 of sales, about ₹21 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation. Each of its 65 employees supports ₹2.30 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin30.5%

Net margin21.0%

Revenue / employee₹2.30 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 27.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 22.1% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE27.5%

ROE22.1%

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 +421% while net margin moved +28% 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+421%

Margin effect+28%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.69 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

76/ 100

Good

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

Valuation

77/ 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

20.3x

3Y Median

45.8x

40 monthly readings · mean 59.5x · range 18.3x–150.1x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 56% below its 3y median of 45.8x. 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 71% below the peer median of 69.2x.

vs. its own history

Cheap

45.8x median over 40 months · -56%

vs. sector peers

Cheap

69.2x median of 4 peers · -71%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

20.3x

P/B

4.45x

EV/EBITDA

14.1x

PEG

0.23

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 23.2% to 30.5% over 3 years.
Cash generation is improving
Free cash flow is up 1084% over 3 years.
High return on capital employed
ROCE of 27.5% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 20.3x the stock trades 56% below its own median of 45.8x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 771% over 3 years — worth checking what it funded.
Return on capital is falling
ROCE has declined from 30.7% to 27.5% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 49283% against revenue growth of 421% — customers are taking longer to pay.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 771% over 3 years, from ₹1 Cr to ₹12 Cr.
🔴High leverageFinancial
Debt/Equity of 8.21x — 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 49283% against revenue up 421% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 27.5% 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 23.2% to 30.5%. 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 56% 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 71% 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 8.21x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 49283% against revenue up 421%. 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
4 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✓ 73.3% CAGR
Latest reported year was 10.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 29%✓ 30.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 25%✓ 27.5%
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

5 good · 4 neutral · 2 weak

Market Cap

₹631 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.3x

Fair

Fairly valued against the generic band

P/B Ratio

4.45x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹29.74

Profitable

Profitable on a per-share basis

ROE

22.1%

Strong

Strong capital efficiency

ROCE

27.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

8.21x

High

High leverage

Revenue Growth (YoY)

10.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-6.0%

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

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹603

Operating Margin

17.3%

Good

Healthy core-business profitability

Net Margin

20.4%

Good

Strong bottom-line conversion

Current Ratio

14.64

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.69

Defensive

Steadier than the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

597.9 / 584.1

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹29 Cr	₹50 Cr	₹126 Cr	₹149 Cr	+73.3%
EBITDA	₹7 Cr	₹12 Cr	₹40 Cr	₹46 Cr	+89.9%
EBITDA Margin	23.2%	23.6%	31.4%	30.5%	—
PAT (Net Profit)	₹5 Cr	₹8 Cr	₹29 Cr	₹31 Cr	+88.3%
EPS	₹10.2	₹8.79	₹28.62	₹30.05	+43.4%
ROE	22.8%	29.1%	28.9%	22.1%	—
ROCE	30.7%	38.4%	36.6%	27.5%	—
Total Debt	₹1 Cr	₹2 Cr	₹4 Cr	₹12 Cr	+105.8%
Free Cash Flow	₹1 Cr	-₹12 Cr	₹13 Cr	₹7 Cr	+127.9%

🟢 Revenue has grown at 73.3% a year over 3 years.

🟢 EBITDA has grown at 89.9% a year over 3 years.

🟢 EBITDA Margin has risen from 23.2% to 30.5% over 3 years (+7.3 pts).

🟢 PAT (Net Profit) has grown at 88.3% a year over 3 years.

🟢 EPS has grown at 43.4% a year over 3 years.

🟡 ROE has held roughly flat at 22.1% over 3 years.

🔴 ROCE has fallen from 30.7% to 27.5% over 3 years (-3.2 pts).

🔴 Total Debt has grown at 105.8% a year over 3 years.

🟢 Free Cash Flow has grown at 127.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹167 Cr

Total Liabilities

₹26 Cr

Total Debt

₹12 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹11 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.2%

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 mixed1 negative3 general

PNGS Gargi Fashion Jewellery Ltd. Share Price in Low Zone

Univest, 17 Aug

PNGS Gargi Fashion Jewellery Q1FY27 Revenue Up 11.61%; EBO Sales Surge, Akshaya Tritiya Revenue Jumps 77%

scanx.trade, 10 JulResults

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

PNGS Gargi Fashion Jewellery Q1 Revenue At 302M Rupees, Net Profit At 50M

Sahi, 31 JulResults

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

PNGS Gargi Fashion Jewellery Ltd is Rated Strong Sell

MarketsMojo, 27 Aug

PNGS Gargi Fashion Jewellery Ltd. Share Price Live Today

CNBC TV18, 03 Jan

PNGS Gargi Fashion Jewellery standalone net profit declines 4.90% in the June 2026 quarter

Business Standard, 01 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong15.2/20

🟡Financial HealthAdequate12.5/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong14.1/15

🟢ValuationAttractive10.7/15

🔴RiskHigh3.9/10

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. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 55% a year73.3% CAGR
✓EBITDA margin holds above 29%30.5%
✓Free cash flow remains positive₹7 Cr
✓Debt / EBITDA stays below 2x0.3x
✓ROCE stays above 25%27.5%