Goldkart Jewels Limited

Sector n/a · NSE

₹126.00+₹5.10 (+4.22%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by 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, with modest growth. Cash generation is currently 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

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

How does it make money?

Turns over ₹117 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation.

EBITDA margin5.6%

Net margin3.0%

What is its competitive advantage?Little sign of one

Returns on capital of 12.0% 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.

ROCE12.0%

ROE6.6%

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 +101% while net margin moved +17% 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+101%

Margin effect+17%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ 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

57/ 100

Average

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

Valuation

18/ 100

Expensive

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

36.6x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 3.6% to 5.6% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 130% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Inventory building faster than sales
Inventory is up 183% against revenue growth of 101% — stock may not be moving.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 130% over 3 years, from ₹14 Cr to ₹32 Cr.
🔴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 183% against revenue up 101% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹14 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 3.6% to 5.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

The debt load needs earnings to hold up
Debt is 4.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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 20% a year✓ 26.2% CAGR
Latest reported year was 42.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 5.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹14 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 7 neutral · 2 weak

Market Cap

₹211 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

6.6%

Weak

Weak capital efficiency

ROCE

12.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.60x

Low

Conservative leverage

Revenue Growth (YoY)

42.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

7.1%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

-₹14 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹126

Gross Margin

6.7%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

3.0%

Average

Average bottom-line conversion

Current Ratio

1.85

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

105.5 / 99.8

Bullish 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	₹58 Cr	₹68 Cr	₹82 Cr	₹117 Cr	+26.2%
EBITDA	₹2 Cr	₹3 Cr	₹6 Cr	₹7 Cr	+45.8%
EBITDA Margin	3.6%	4.6%	7.3%	5.6%	—
PAT (Net Profit)	₹2 Cr	₹1 Cr	₹3 Cr	₹4 Cr	+33.0%
EPS	₹0.9	₹0.58	—	—	—
ROE	6.6%	2.7%	6.6%	6.6%	—
ROCE	13.5%	8.3%	11.8%	12.0%	—
Total Debt	₹14 Cr	₹14 Cr	₹14 Cr	₹32 Cr	+32.1%
Free Cash Flow	₹4 Cr	₹2 Cr	₹3 Cr	-₹14 Cr	—

🟢 Revenue has grown at 26.2% a year over 3 years.

🟢 EBITDA has grown at 45.8% a year over 3 years.

🟢 EBITDA Margin has risen from 3.6% to 5.6% over 3 years (+2.0 pts).

🟢 PAT (Net Profit) has grown at 33.0% a year over 3 years.

🟡 ROE has held roughly flat at 6.6% over 3 years.

🔴 ROCE has fallen from 13.5% to 12.0% over 3 years (-1.4 pts).

🔴 Total Debt has grown at 32.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹14 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹88 Cr

Total Liabilities

₹33 Cr

Total Debt

₹32 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹14 Cr

Capex

-₹0 Cr

Recent News

6 general

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Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics 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 QualityAdequate9/20

🟡Financial HealthAdequate10.8/20

🟢GrowthStrong18.5/20

🔴ProfitabilityWeak4.5/15

🟡ValuationFair7.5/15

🔴RiskHigh2.5/10

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.

This thesis breaks if

✓Revenue growth stays above 20% a year26.2% CAGR
✓EBITDA margin holds above 4%5.6%
✗Debt / EBITDA falls below 3x4.9x
✗Free cash flow remains positive-₹14 Cr
✓Interest cover stays above 3x3.4x