Naksh Precious Metals Limited

Consumer Cyclical — Auto & Truck Dealerships · BSE

₹4.10+₹0.13 (+3.27%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is 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 Naksh Precious Metals Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Naksh Precious Metals Limited engages in the manufacturing and distribution of jewelry products in India. The company offers gold, silver, and diamond jewelry comprising necklaces, bangles, rings, chains, and earrings, as well as silver bars, gold bars, and gems.

IndustryAuto & Truck Dealerships

SectorConsumer Cyclical

Employees4

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹-26 reaches shareholders as profit, with ₹-1 left at the operating level before interest, tax and depreciation. Each of its 4 employees supports ₹36.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-0.9%

Net margin-25.7%

Revenue / employee₹36.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

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%

What is its competitive advantage?Little sign of one

Returns on capital of -8.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE-8.8%

ROE-6.2%

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 +1523% while net margin moved -1582% 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+1523%

Margin effect-1582%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 6.2 points over the period

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

36/ 100

Expensive

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

0.71x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 60.2% to -0.9% over 3 years.
Return on equity is falling
ROE has dropped from 0.0% to -6.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 0.1% to -8.8% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 61.2 points, from 60.2% to -0.9%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 60.2% to -0.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 0.0% to -6.2%. 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.
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
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.
Several serious flags at once
2 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 115% a year✓ 153.2% CAGR
Latest reported year was -19.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -3%✓ -0.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ -8.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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
✓ 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

2 good · 3 neutral · 6 weak

Market Cap

₹4 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.71x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.5

Loss-making

Negative earnings per share — the business is losing money

ROE

-6.2%

Weak

Weak capital efficiency

ROCE

-8.8%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-19.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-182.7%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹4.1

Operating Margin

7.0%

Average

Average margins

Net Margin

-30.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

42.23

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.32

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3.7 / 3.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

66.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹2 Cr	₹1 Cr	+153.2%
EBITDA	₹0 Cr	-₹0 Cr	₹0 Cr	-₹0 Cr	—
EBITDA Margin	60.2%	-2.5%	19.6%	-0.9%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	-₹0 Cr	—
EPS	₹0	₹0.03	₹0.43	₹-0.36	—
ROE	0.0%	0.5%	7.0%	-6.2%	—
ROCE	0.1%	-0.9%	6.4%	-8.8%	—
Total Debt	₹3 Cr	₹0 Cr	₹0 Cr	—	—
Free Cash Flow	-₹7 Cr	₹1 Cr	₹1 Cr	₹1 Cr	—

🟢 Revenue has grown at 153.2% a year over 3 years.

🔴 EBITDA has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EBITDA Margin has fallen from 60.2% to -0.9% over 3 years (-61.2 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EPS has turned negative, from ₹0 to ₹-0.36.

🔴 ROE has fallen from 0.0% to -6.2% over 3 years (-6.2 pts).

🔴 ROCE has fallen from 0.1% to -8.8% over 3 years (-8.9 pts).

🟢 Free Cash Flow has turned positive, from -₹7 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

24.9%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

6 general

Naksh Precious Metals posts ₹37.6 lakh net loss in FY26

scanx.trade, 04 Sept

Naksh Precious Metals Ltd

Equitypandit, 21 Mar

Naksh Precious Metals (BSE:539402) - Stock Analysis

Simply Wall Street, 11 Oct

P N Gadgil Jewellers Ltd leads losers in 'B' group

Business Standard, 15 May

Naksh Precious Metals shareholders approve all six AGM resolutions

scanx.trade, 05 Oct

Sensex falls 300 points, Nifty 50 ends at 26,250 after US strikes Venezuela— 10 key highlights from Indian stock market

Livemint, 05 Jan

Watch Items

Revenue growth is negative (-19.0%) 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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🔴Business QualityWeak4.7/20

🟢Financial HealthStrong17.3/20

🟢GrowthStrong13/20

🔴ProfitabilityWeak2.5/15

🟡ValuationFair7.1/15

🔴RiskHigh4.4/10

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

This thesis breaks if

✓Revenue growth stays above 115% a year153.2% CAGR
✓EBITDA margin holds above -3%-0.9%
✓Free cash flow remains positive₹1 Cr
✗ROCE stays above 8%-8.8%