Golkunda Diamonds & Jewellery Limited

Consumer Cyclical — Luxury Goods · BSE

₹366.85+₹8.30 (+2.31%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Golkunda Diamonds & Jewellery Limited manufactures and sells diamond studded jewellery in India and internationally. The company's products include rings, pendants, bracelets, earrings, necklaces, and bangles.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees23

Annual revenue₹274 Cr

How does it make money?

Turns over ₹274 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 23 employees supports ₹11.91 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹11.91 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 23.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 17.1% 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.

Peer median ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +21% while net margin moved +20% 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+21%

Margin effect+20%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✓ ROCE of 23.7% is above 20% — the business earns a high return on the capital it employs
✗ ROCE has fallen by 7.2 points — returns are eroding
✗ EBITDA margin of 8.1% is thin — little cushion if costs rise
✗ Net margin of 5.3% is slim
• Revenue has compounded at 6.5% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

67/ 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

16.1x

3Y Median

13.9x

40 monthly readings · mean 13.7x · range 7.5x–19.9x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 16% above its 3y median of 13.9x. 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 77% below the peer median of 69.2x.

vs. its own history

Fair

13.9x median over 40 months · +16%

vs. sector peers

Cheap

69.2x median of 4 peers · -77%

vs. generic bands

Fair

15x–35x

EV/EBITDA

13.1x

PEG

1.21

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 13% over 3 years.
Cash generation is improving
Free cash flow is up 61% over 3 years.
High return on capital employed
ROCE of 23.7% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 20.7% to 17.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 30.9% to 23.7% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 46% against revenue up 21% — 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 23.7% 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.
Cheaper than its peers
It trades 77% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹9 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Sales are being booked faster than collected
Receivables are up 46% against revenue up 21%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 6.5% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 20.7% to 17.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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

1EBITDA margin holds above 6%✓ 8.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.5% CAGR
Latest reported year was 22.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹9 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 21%✓ 23.7%
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 · 4 neutral · 0 weak

Market Cap

₹255 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.1x

Fair

Fairly valued against the generic band

P/B Ratio

3.18x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹22.8

Profitable

Profitable on a per-share basis

ROE

17.1%

Strong

Strong capital efficiency

ROCE

23.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.43x

Low

Conservative leverage

Revenue Growth (YoY)

22.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

62.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.41%

Modest

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

Free Cash Flow

₹9 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

9.5%

Average

Average margins

Net Margin

5.3%

Average

Average bottom-line conversion

Current Ratio

2.21

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.22

Defensive

Steadier than the market

52W Range Position

94%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

326.2 / 319.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

71.9

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹227 Cr	₹230 Cr	₹248 Cr	₹274 Cr	+6.5%
EBITDA	₹15 Cr	₹17 Cr	₹20 Cr	₹22 Cr	+13.1%
EBITDA Margin	6.7%	7.3%	8.1%	8.1%	—
PAT (Net Profit)	₹9 Cr	₹10 Cr	₹12 Cr	₹14 Cr	+13.3%
EPS	₹13.54	₹13.81	₹16.97	₹19.66	+13.2%
ROE	20.7%	17.8%	18.1%	17.1%	—
ROCE	30.9%	28.8%	28.5%	23.7%	—
Total Debt	₹40 Cr	₹39 Cr	₹36 Cr	₹35 Cr	-4.6%
Free Cash Flow	₹6 Cr	₹3 Cr	₹8 Cr	₹9 Cr	+17.2%

🟢 Revenue has grown at 6.5% a year over 3 years.

🟢 EBITDA has grown at 13.1% a year over 3 years.

🟢 EBITDA Margin has risen from 6.7% to 8.1% over 3 years (+1.3 pts).

🟢 PAT (Net Profit) has grown at 13.3% a year over 3 years.

🟢 EPS has grown at 13.2% a year over 3 years.

🔴 ROE has fallen from 20.7% to 17.1% over 3 years (-3.7 pts).

🔴 ROCE has fallen from 30.9% to 23.7% over 3 years (-7.2 pts).

🟢 Total Debt has shrunk at 4.6% a year over 3 years.

🟢 Free Cash Flow has grown at 17.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹152 Cr

Total Liabilities

₹72 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹10 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.2%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

20 Aug 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

1 mixed5 general

Broad-Based Technical Strength Lifts Golkunda Diamonds & Jewellery Ltd to 52-Week High of Rs 379

MarketsMojo, 14 Oct

Golkunda Diamonds & Jewellery (GOLKUNDIA) Share Price near 52-week high after 17.22% rise

Univest, 09 Oct

Compare GOLKUNDA DIAMONDS with

Equitymaster, 10 Oct

Golkunda Diamonds Launches Mumbai Manufacturing Plant For Indian Market

Sahi, 03 Aug

Golkunda Diamonds & Jewellery Ltd Hits All-Time High of Rs 359.90 as Momentum Builds Across Timeframes

MarketsMojo, 14 Oct

Golkunda Diamonds Q4 Results: Analyst call held, no price-sensitive info

scanx.trade, 14 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Profitability · Valuation · 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.

All 5 tripwires holding · see Key things to watch ↑