Lalithaa Jewellery Mart Limited

Consumer Cyclical — Luxury Goods · NSE

₹367.10+₹13.25 (+3.74%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings, falling profits.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Lalithaa Jewellery Mart Limited designs, manufactures, and sells gold, silver, diamond. and other jewellery products under the Lalithaa brand name.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees7,059

Annual revenue₹25,024 Cr

How does it make money?

Turns over ₹25,024 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 7,059 employees supports ₹3.54 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin6.7%

Net margin4.0%

Revenue / employee₹3.54 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 46.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 34.5% 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.

ROCE46.1%

ROE34.5%

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 +88% while net margin moved +125% 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+88%

Margin effect+125%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Small 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

70/ 100

Good

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

Valuation

71/ 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

21.6x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 69% below the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

69.2x median of 4 peers · -69%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

21.6x

P/B

6.26x

EV/EBITDA

13.4x

PEG

0.35

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 3.8% to 6.7% over 3 years.
Return on equity is rising
ROE has improved from 19.7% to 34.5%.
Return on capital is rising
ROCE has improved from 27.5% to 46.1%.
High return on capital employed
ROCE of 46.1% 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 Attention4

Debt is rising
Total debt is up 116% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 358% against revenue growth of 88% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 183% against revenue growth of 88% — stock may not be moving.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 116% over 3 years, from ₹946 Cr to ₹2,045 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.
🔴Receivables growing faster than salesFinancial
Receivables up 358% against revenue up 88% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 183% against revenue up 88% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹465 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 46.1% 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 3.8% to 6.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 69% 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?

Sales are being booked faster than collected
Receivables are up 358% against revenue up 88%. 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
Small 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 18% a year✓ 23.4% CAGR
Latest reported year was 25.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 6.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹465 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 43%✓ 46.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 10 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

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹20,547 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.6x

Fair

Fairly valued against the generic band

P/B Ratio

6.26x

Rich

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

EPS (TTM)

₹17.02

Profitable

Profitable on a per-share basis

ROE

34.5%

Strong

Strong capital efficiency

ROCE

46.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.70x

Moderate

Moderate leverage

Revenue Growth (YoY)

25.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-21.7%

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

-₹465 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹367.1

Operating Margin

5.7%

Average

Average margins

Net Margin

3.6%

Average

Average bottom-line conversion

Current Ratio

1.34

Comfortable

Healthy short-term liquidity

52W Range Position

73%

Mid-range

Technical Snapshot

RSI (14)

51.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13,317 Cr	₹16,788 Cr	₹16,897 Cr	₹25,024 Cr	+23.4%
EBITDA	₹502 Cr	₹679 Cr	₹744 Cr	₹1,682 Cr	+49.7%
EBITDA Margin	3.8%	4.0%	4.4%	6.7%	—
PAT (Net Profit)	₹238 Cr	₹360 Cr	₹365 Cr	₹1,010 Cr	+61.8%
EPS	₹4.26	₹6.43	₹6.52	₹18.04	+61.8%
ROE	19.7%	23.0%	18.9%	34.5%	—
ROCE	27.5%	30.8%	27.8%	46.1%	—
Total Debt	₹946 Cr	₹1,255 Cr	₹1,383 Cr	₹2,045 Cr	+29.3%
Free Cash Flow	₹217 Cr	-₹110 Cr	₹168 Cr	-₹465 Cr	—

🟢 Revenue has grown at 23.4% a year over 3 years.

🟢 EBITDA has grown at 49.7% a year over 3 years.

🟢 EBITDA Margin has risen from 3.8% to 6.7% over 3 years (+3.0 pts).

🟢 PAT (Net Profit) has grown at 61.8% a year over 3 years.

🟢 EPS has grown at 61.8% a year over 3 years.

🟢 ROE has risen from 19.7% to 34.5% over 3 years (+14.7 pts).

🟢 ROCE has risen from 27.5% to 46.1% over 3 years (+18.7 pts).

🔴 Total Debt has grown at 29.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹217 Cr to -₹465 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹10,945 Cr

Total Liabilities

₹8,015 Cr

Total Debt

₹2,045 Cr

Cash & Equivalents

₹16 Cr

Operating Cash Flow

-₹398 Cr

Capex

-₹68 Cr

Shareholding (proxy)

Institutional Holding

4.1%

Insider Holding

82.8%

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

Lalithaa Jewellery Mart Ltd. Share Price Live Today

CNBC TV18, 16 Oct

LALITHAA Share Price Update: Price Action and Valuation

Univest, 16 Oct

Lalithaa Jewellery IPO Turns Into A Blockbuster: Shares List 32% Higher; Check How Much Investors Made

Goodreturns, 16 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Lalithaa Jewellery Mart plans to add 10 new storeswith proceeds of Rs 1,700 cr IPO opening on Aug 17

The Retail Jeweller India, 16 Oct

Shanti Gold International Buys 1.44 Lakh Shares In Lalithaa Jewellery Mart For ₹3.88 Crore

Sahi, 31 Aug

Lalithaa Jewellery Mart shares shine on debut, list at 32% premium over IPO price

The Economic Times, 24 Aug

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate12.4/20

🟡Financial HealthAdequate11/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong10.6/15

🟡ValuationFair6.8/15

🔴RiskHigh3.1/10

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 18% a year23.4% CAGR
✓EBITDA margin holds above 5%6.7%
✗Free cash flow remains positive-₹465 Cr
✓Debt / EBITDA stays below 2x1.2x
✓ROCE stays above 43%46.1%