International Gemological Institute Limited

Basic Materials — Other Precious Metals & Mining · NSE

₹327.40+₹5.60 (+1.74%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

International Gemological Institute Limited provides independent certification and grading services for diamonds, color gemstones, and jewelry in India and internationally.

IndustryOther Precious Metals & Mining

SectorBasic Materials

Employees1,306

Annual revenue₹1,053 Cr

How does it make money?

Turns over ₹1,053 Cr a year. Of every ₹100 of sales, about ₹41 reaches shareholders as profit, with ₹60 left at the operating level before interest, tax and depreciation. Each of its 1,306 employees supports ₹80.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹80.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA 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 38.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 30.3% against a peer median of 18.7% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE18.7%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 44.3% and earnings to grow about 15.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+44.3%

Est. earnings growth+15.0%

Analysts4

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 +118% while net margin moved -19% 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+118%

Margin effect-19%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

53/ 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

24.0x

2Y Median

33.7x

24 monthly readings · mean 38.0x · range 30.2x–72.4x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 29% below its 2y median of 33.7x. 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 97% above the peer median of 12.2x.

vs. its own history

Cheap

33.7x median over 24 months · -29%

vs. sector peers

Expensive

12.2x median of 4 peers · +97%

vs. generic bands

Fair

15x–35x

EV/EBITDA

22.3x

PEG

1.15

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 140% over 3 years.
High return on capital employed
ROCE of 38.4% 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 71.3% to 30.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 89.6% to 38.4% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 5 high

🔴Debt has risen sharplyFinancial
Total debt is up 434% over 3 years, from ₹27 Cr to ₹143 Cr.
🔴High leverageFinancial
Debt/Equity of 9.59x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 10.5 points, from 71.0% to 60.4%.
🔴Receivables growing faster than salesFinancial
Receivables up 272% against revenue up 118% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 1783% against revenue up 118% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 38.4% 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.
Priced below its own history
The stock trades 29% 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?

Margins are being competed away
EBITDA margin has fallen from 71.0% to 60.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 9.59x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 272% against revenue up 118%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 97% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 71.3% to 30.3%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 22% a year✓ 29.6% CAGR
Latest reported year was 23.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 58%✓ 60.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹439 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 35%✓ 38.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹14,149 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.0x

Fair

Fairly valued against the generic band

P/B Ratio

9.51x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹13.64

Profitable

Profitable on a per-share basis

ROE

30.3%

Strong

Strong capital efficiency

ROCE

38.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

9.59x

High

High leverage

Revenue Growth (YoY)

23.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

32.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.56%

Modest

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

Free Cash Flow

₹439 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

18.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

56.6%

Good

Healthy core-business profitability

Net Margin

44.7%

Good

Strong bottom-line conversion

Current Ratio

5.16

Comfortable

Healthy short-term liquidity

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

320.2 / 329.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹484 Cr	₹888 Cr	₹1,042 Cr	₹1,053 Cr	+29.6%
EBITDA	₹344 Cr	₹509 Cr	₹639 Cr	₹636 Cr	+22.8%
EBITDA Margin	71.0%	57.3%	61.3%	60.4%	—
PAT (Net Profit)	₹242 Cr	₹331 Cr	₹427 Cr	₹427 Cr	+20.9%
EPS	₹5.59	₹7.66	₹10.28	₹10.28	+22.5%
ROE	71.3%	—	40.2%	30.3%	—
ROCE	89.6%	—	49.5%	38.4%	—
Total Debt	₹27 Cr	₹151 Cr	₹145 Cr	₹143 Cr	+74.8%
Free Cash Flow	₹183 Cr	₹248 Cr	₹354 Cr	₹439 Cr	+33.8%

🟢 Revenue has grown at 29.6% a year over 3 years.

🟢 EBITDA has grown at 22.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 71.0% to 60.4% over 3 years (-10.5 pts).

🟢 PAT (Net Profit) has grown at 20.9% a year over 3 years.

🟢 EPS has grown at 22.5% a year over 3 years.

🔴 ROE has fallen from 71.3% to 30.3% over 3 years (-41.0 pts).

🔴 ROCE has fallen from 89.6% to 38.4% over 3 years (-51.2 pts).

🔴 Total Debt has grown at 74.8% a year over 3 years.

🟢 Free Cash Flow has grown at 33.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹1,755 Cr

Total Liabilities

₹345 Cr

Cash & Equivalents

₹98 Cr

Operating Cash Flow

₹502 Cr

Capex

-₹63 Cr

Shareholding (proxy)

Institutional Holding

9.0%

Insider Holding

77.6%

Corporate Actions

Dividend Rate

₹5.1

Ex-Dividend Date

24 Aug 2026

Analyst Consensus

Recommendations

4 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹495.5

+51.3% vs CMP

Target Range

₹410 – ₹570

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

3 mixed3 general

International Gemological Institute (NSEI:IGIL) - Stock Analysis

Simply Wall Street, 09 Apr

International Gemological Institute Q1 Net Profit at 1.66B Rupees Versus 1.27B YoY

Sahi, 23 JulResults

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

IGIL Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

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

International Gemological Institute Ltd (NSE:IGIL) Q2 2026 Earnings Call Highlights: Strong ...

Yahoo Finance, 24 JulResults

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

IGIL targets 17-19% revenue CAGR, cites SUV surge

scanx.trade, 29 Jul

International Gemological Institute Ltd. Share Price Live Today

CNBC TV18, 29 Apr

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Profitability

MiddlingFinancial Health · Growth · Valuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 5 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑