Guru Krupa Gems and Jewellery Limited

Consumer Cyclical — Luxury Goods · BSE

₹37.99₹0.00 (0.00%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very 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, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Guru Krupa Gems and Jewellery Limited manufactures, wholesales, retails, and trades in gold and silver jewelry in India. The company offers gold jewellery with or without studded precious and semi-precious stones; and ornaments.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees15

Annual revenue₹27 Cr

How does it make money?

Turns over ₹27 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 15 employees supports ₹1.80 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.80 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 3.4% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -74% while net margin moved +171% 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-74%

Margin effect+171%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 36.0% a year
✗ Profit has declined at 10.8% a year
✗ Latest-year revenue growth of -67.7% is below the longer-term trend — momentum is fading
✗ Profit fell 57.1% in the latest year

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

26/ 100

Expensive

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

111.7x

3Y Median

31.0x

40 monthly readings · mean 45.5x · range 15.3x–100.0x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 260% above its 3y median of 31.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 61% above the peer median of 69.2x.

vs. its own history

Expensive

31.0x median over 40 months · +260%

vs. sector peers

Expensive

69.2x median of 4 peers · +61%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

58.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 1.9% to 3.6% over 3 years.
Debt is being paid down
Total debt is down 94% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 11.4% to 3.4% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 2 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 2.00x — earnings must service borrowings before shareholders see anything.
🔴Inventory building faster than salesFinancial
Inventory up 79% against revenue up -74% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 29% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 43% 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 1.9% to 3.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 94% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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 2.00x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 260% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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
2 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

1EBITDA margin holds above 2%✓ 3.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 3.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 31.0x✗ 111.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

3 / 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

1 good · 3 neutral · 7 weak

Market Cap

₹57 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

111.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.29x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.34

Profitable

Profitable on a per-share basis

ROE

2.3%

Weak

Weak capital efficiency

ROCE

3.4%

Weak

Low return on total capital employed

Debt/Equity

2.00x

High

High leverage

Revenue Growth (YoY)

-67.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-57.1%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

1.8%

Weak

Thin margins leave little room for error

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

50.14

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.12

Defensive

Steadier than the market

52W Range Position

60%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

37.5 / 33.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

39.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹103 Cr	₹104 Cr	₹113 Cr	₹27 Cr	-36.0%
EBITDA	₹2 Cr	₹2 Cr	₹1 Cr	₹1 Cr	-20.8%
EBITDA Margin	1.9%	1.6%	1.0%	3.6%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-10.8%
EPS	₹0.79	₹0.52	₹0.45	₹0.38	-21.6%
ROE	4.8%	3.3%	2.8%	2.3%	—
ROCE	11.4%	6.7%	4.5%	3.4%	—
Total Debt	₹9 Cr	₹2 Cr	₹1 Cr	₹0 Cr	-61.7%
Free Cash Flow	₹6 Cr	₹1 Cr	-₹7 Cr	-₹1 Cr	—

🔴 Revenue has shrunk at 36.0% a year over 3 years.

🔴 EBITDA has shrunk at 20.8% a year over 3 years.

🟢 EBITDA Margin has risen from 1.9% to 3.6% over 3 years (+1.7 pts).

🔴 PAT (Net Profit) has shrunk at 10.8% a year over 3 years.

🔴 EPS has shrunk at 21.6% a year over 3 years.

🔴 ROE has fallen from 4.8% to 2.3% over 3 years (-2.5 pts).

🔴 ROCE has fallen from 11.4% to 3.4% over 3 years (-8.0 pts).

🟢 Total Debt has shrunk at 61.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹6 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹26 Cr

Total Liabilities

₹1 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

45.0%

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 negative5 general

GKL Stock Price and Chart — BSE:GKL

TradingView, 13 Mar

Guru Krupa Gems And Jewellery Ltd. Share Price Live Today

CNBC TV18, 11 Mar

Guru Krupa Gems FY26 revenue falls 76% to ₹2,698 lakh; AGM set for Sep 25

scanx.trade, 02 SeptResults

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

Jewellery Penny Stocks in India 2027: 5 Top Picks

Univest, 16 Sept

Guru Krupa Gems appoints Madhav Upadhyay as Secretarial Auditor for five years

scanx.trade, 25 Sept

Jewelry Market Size In India is set to grow by USD 21.54 billion from 2023-2027, Cultural significance of jewelry boost the market, Technavio

PR Newswire, 23 Jul

Watch Items

Revenue growth is negative (-67.7%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Risk

WeakBusiness Quality · Growth · Profitability · Valuation

Points for each in the Score ↑

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

3 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8%; Valuation vs its own median of 31.0x · see Key things to watch ↑