Motisons Jewellers Limited

Consumer Cyclical — Luxury Goods · NSE

₹17.61+₹0.17 (+0.97%)

DalalBaazaar Score

64 / 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, 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, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Motisons Jewellers Limited engages in the manufacture and retail of jewelry in India. It offers necklaces, earrings, pendants, bracelets, rings, and mangalsutras made of gold, diamond, kundan, pearl, silver, earth, platinum, precious, semi-precious stones, and other metals.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees179

Annual revenue₹490 Cr

How does it make money?

Turns over ₹490 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 179 employees supports ₹2.73 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.73 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?Some evidence

ROCE of 18.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +34% while net margin moved +115% 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+34%

Margin effect+115%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.51 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

73/ 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

28.0x

3Y Median

40.9x

36 monthly readings · mean 47.6x · range 25.0x–84.5x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 32% below its 3y median of 40.9x. 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 60% below the peer median of 69.2x.

vs. its own history

Cheap

40.9x median over 36 months · -32%

vs. sector peers

Cheap

69.2x median of 4 peers · -60%

vs. generic bands

Fair

15x–35x

EV/EBITDA

23.3x

PEG

0.66

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 13.4% to 17.8% over 3 years.
Debt is being paid down
Total debt is down 77% over 3 years.
Cash generation is improving
Free cash flow is up 566% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 16.2% to 12.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 30.0% to 18.0% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 7.79x — earnings must service borrowings before shareholders see anything.
🟡Inventory building faster than salesFinancial
Inventory up 70% against revenue up 34% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 13.4% to 17.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 77% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 32% 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.
Cheaper than its peers
It trades 60% 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 7.79x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 16.2% to 12.8%. 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

1Revenue growth stays above 8% a year✓ 10.2% CAGR
Latest reported year was 23.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 17.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹26 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 18.0%
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

5 good · 5 neutral · 1 weak

Market Cap

₹2,003 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.0x

Fair

Fairly valued against the generic band

P/B Ratio

3.66x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.63

Profitable

Profitable on a per-share basis

ROE

12.8%

Moderate

Moderate capital efficiency

ROCE

18.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

7.79x

High

High leverage

Revenue Growth (YoY)

23.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

37.5%

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

₹26 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

14.8%

Average

Average margins

Net Margin

13.1%

Good

Strong bottom-line conversion

Current Ratio

8.67

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

76%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

17.9 / 16.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

46.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹366 Cr	₹417 Cr	₹462 Cr	₹490 Cr	+10.2%
EBITDA	₹49 Cr	₹64 Cr	₹70 Cr	₹87 Cr	+21.1%
EBITDA Margin	13.4%	15.3%	15.2%	17.8%	—
PAT (Net Profit)	₹22 Cr	₹32 Cr	₹43 Cr	₹64 Cr	+42.1%
EPS	₹0.23	₹0.43	₹0.42	₹0.65	+42.3%
ROE	16.2%	9.8%	10.4%	12.8%	—
ROCE	30.0%	18.3%	16.2%	18.0%	—
Total Debt	₹168 Cr	₹111 Cr	₹72 Cr	₹39 Cr	-38.6%
Free Cash Flow	₹4 Cr	-₹54 Cr	-₹22 Cr	₹26 Cr	+88.1%

🟢 Revenue has grown at 10.2% a year over 3 years.

🟢 EBITDA has grown at 21.1% a year over 3 years.

🟢 EBITDA Margin has risen from 13.4% to 17.8% over 3 years (+4.4 pts).

🟢 PAT (Net Profit) has grown at 42.1% a year over 3 years.

🟢 EPS has grown at 42.3% a year over 3 years.

🔴 ROE has fallen from 16.2% to 12.8% over 3 years (-3.4 pts).

🔴 ROCE has fallen from 30.0% to 18.0% over 3 years (-12.1 pts).

🟢 Total Debt has shrunk at 38.6% a year over 3 years.

🟢 Free Cash Flow has grown at 88.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹573 Cr

Total Liabilities

₹74 Cr

Cash & Equivalents

₹16 Cr

Operating Cash Flow

₹27 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

62.7%

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

2 positive3 mixed1 general

Motisons Jewellers' shares jump after the opening of the QIP. Check details

Livemint, 10 JunPrice 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.

Motisons Jewellers Shares Rise After QIP Launch; Company Sets Floor Price At ₹11.58

Samco, 10 JunPrice 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.

Vodafone Idea, Motisons, LEAP India Among Top NSE Movers

HDFC Sky, 14 Aug

Motisons Jewellers standalone net profit rises 37.61% in the June 2026 quarter

Business Standard, 12 AugResults

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

Motisons Jewellers Q1FY27 net profit rises 38% to ₹110.5 crore

scanx.trade, 12 AugResults

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

Share Market News: Jewellery stock ends session in green as company set to raise funds, QIP approved; check f

India.com, 10 JunFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation

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. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑