Luxury Time Limited

Consumer Cyclical — Luxury Goods · BSE

₹76.99+₹4.99 (+6.93%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Luxury Time Limited engages in the distribution, marketing, and retailing of Swiss luxury watches in India. It also offers after-sales services and repair services. It sells its products through retail and online stores.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees23

Annual revenue₹60 Cr

How does it make money?

Turns over ₹60 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 23 employees supports ₹2.61 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.61 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 20.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 20.1% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +14% while net margin moved +89% 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+14%

Margin effect+89%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

75/ 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

10.4x

1.0Y Median

11.4x

12 monthly readings · mean 11.6x · range 9.7x–14.1x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 1.0y median of 11.4x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 85% below the peer median of 69.2x.

vs. its own history

Fair

11.4x median over 12 months · -9%

vs. sector peers

Cheap

69.2x median of 4 peers · -85%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.5x

PEG

0.36

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 7.6% to 12.1% over 3 years.
Debt is being paid down
Total debt is down 10% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 20.2% 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 22.8% to 15.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 33.6% to 20.2% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 5.35x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 70% against revenue up 14% — 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 20.2% 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 7.6% to 12.1%. 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 85% 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?

Leverage amplifies any setback
Debt/Equity of 5.35x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 70% against revenue up 14%. 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 4.4% 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 22.8% to 15.0%. 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 10%✓ 12.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.4% CAGR
Latest reported year was -0.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 20.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹64 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.4x

Cheap

Cheap against the generic band

P/B Ratio

1.72x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.4

Profitable

Profitable on a per-share basis

ROE

20.1%

Strong

Strong capital efficiency

ROCE

20.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.35x

High

High leverage

Revenue Growth (YoY)

-0.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

49.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

14.2%

Good

Assets are working hard

Operating Margin

13.3%

Average

Average margins

Net Margin

9.2%

Average

Average bottom-line conversion

Current Ratio

3.28

Comfortable

Healthy short-term liquidity

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

70.4 / 64.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹53 Cr	₹50 Cr	₹60 Cr	₹60 Cr	+4.4%
EBITDA	₹4 Cr	₹3 Cr	₹6 Cr	₹7 Cr	+21.9%
EBITDA Margin	7.6%	6.4%	10.3%	12.1%	—
PAT (Net Profit)	₹3 Cr	₹2 Cr	₹4 Cr	₹6 Cr	+29.0%
EPS	₹3.12	₹2.44	₹5.97	—	—
ROE	22.8%	15.1%	20.2%	15.0%	—
ROCE	33.6%	22.7%	30.5%	20.2%	—
Total Debt	₹2 Cr	₹3 Cr	₹2 Cr	₹2 Cr	-3.6%
Free Cash Flow	-₹1 Cr	₹3 Cr	-₹1 Cr	₹0 Cr	—

🟢 Revenue has grown at 4.4% a year over 3 years.

🟢 EBITDA has grown at 21.9% a year over 3 years.

🟢 EBITDA Margin has risen from 7.6% to 12.1% over 3 years (+4.5 pts).

🟢 PAT (Net Profit) has grown at 29.0% a year over 3 years.

🔴 ROE has fallen from 22.8% to 15.0% over 3 years (-7.8 pts).

🔴 ROCE has fallen from 33.6% to 20.2% over 3 years (-13.4 pts).

🟢 Total Debt has shrunk at 3.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹48 Cr

Total Liabilities

₹11 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.3%

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 positive5 general

Luxury Time Limited Share Price

Upstox, 05 May

Porsche takes aim at Ferrari with luxury supercar concept

The Economic Times, 16 Oct

LVMH sheds boom-time gains as luxury ‘feelgood factor’ fades

Financial Times, 05 Sept

Luxury Time Limited Reports Strong FY26 Financial Performance; Standalone Net Profit Rises to ₹561.98 Lakhs

scanx.trade, 15 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Compare with

Equitymaster, 27 Jun

Luxury Time Ltd. IPO Allotment Status: Check Overall Subscription & Steps to Verify Status

Groww, 09 Dec

Watch Items

Revenue growth is negative (-0.4%) 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

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

Points for each in the Score ↑

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

All 5 tripwires holding · see Key things to watch ↑