Palm Jewels Limited

Consumer Cyclical — Luxury Goods · BSE

₹25.30+₹2.30 (+10.00%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Palm Jewels Limited engages in the wholesale trade of gold and silver jewellery in India. The company sells gold-based chains and mangal sutras, gold lucky, silver ornaments, silver payal, silver zuda, silver baccha items, bracelets, and necklaces.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees18

Annual revenue₹185 Cr

How does it make money?

Turns over ₹185 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 18 employees supports ₹10.29 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin0.9%

Net margin0.5%

Revenue / employee₹10.29 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?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.

ROCE8.8%

ROE6.0%

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 +86% while net margin moved +77% 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+86%

Margin effect+77%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROCE of 8.8% is below 10% — capital is not working hard
✓ ROCE has improved by 5.0 points over the period — returns are strengthening
✗ EBITDA margin of 0.9% is thin — little cushion if costs rise
✗ Net margin of 0.5% is slim
• Revenue has compounded at 23.0% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

65/ 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

34.2x

3Y Median

58.3x

40 monthly readings · mean 55.8x · range 15.3x–111.9x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 41% below its 3y median of 58.3x. 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 51% below the peer median of 69.2x.

vs. its own history

Cheap

58.3x median over 40 months · -41%

vs. sector peers

Cheap

69.2x median of 4 peers · -51%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

34.2x

P/B

1.58x

EV/EBITDA

17.2x

PEG

0.70

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Return on equity is rising
ROE has improved from 2.1% to 6.0%.
Return on capital is rising
ROCE has improved from 3.8% to 8.8%.
Valuation below its historical average
At 34.2x the stock trades 41% below its own median of 58.3x.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Debt is rising
Total debt is up 47% over 3 years — worth checking what it funded.

Red Flags

1 item require attention · 1 watch

🟡Debt is increasingFinancial
Total debt is up 47% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 41% 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 51% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹1 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

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 17% a year✓ 23.0% CAGR
Latest reported year was 11.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 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.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 8.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

4 good · 5 neutral · 2 weak

Market Cap

₹25 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

34.2x

Fair

Fairly valued against the generic band

P/B Ratio

1.58x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.74

Profitable

Profitable on a per-share basis

ROE

6.0%

Weak

Weak capital efficiency

ROCE

8.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

11.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-12.0%

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

₹25.3

Operating Margin

0.8%

Weak

Thin margins leave little room for error

Net Margin

0.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

5.14

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.19

Defensive

Steadier than the market

52W Range Position

100%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

19.4 / 16.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

77.3

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹100 Cr	₹161 Cr	₹190 Cr	₹185 Cr	+23.0%
EBITDA	₹1 Cr	₹1 Cr	₹1 Cr	₹2 Cr	+36.1%
EBITDA Margin	0.6%	0.5%	0.6%	0.9%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹1 Cr	₹1 Cr	+48.9%
EPS	₹0.3	₹0.34	₹0.54	₹0.99	+48.9%
ROE	2.1%	2.3%	3.5%	6.0%	—
ROCE	3.8%	3.9%	5.7%	8.8%	—
Total Debt	₹2 Cr	₹1 Cr	₹4 Cr	₹3 Cr	+13.7%
Free Cash Flow	₹3 Cr	₹3 Cr	-₹2 Cr	₹1 Cr	-35.9%

🟢 Revenue has grown at 23.0% a year over 3 years.

🟢 EBITDA has grown at 36.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 0.9% over 3 years.

🟢 PAT (Net Profit) has grown at 48.9% a year over 3 years.

🟢 EPS has grown at 48.9% a year over 3 years.

🟢 ROE has risen from 2.1% to 6.0% over 3 years (+4.0 pts).

🟢 ROCE has risen from 3.8% to 8.8% over 3 years (+5.0 pts).

🔴 Total Debt has grown at 13.7% a year over 3 years.

🔴 Free Cash Flow has shrunk at 35.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹20 Cr

Total Liabilities

₹4 Cr

Total Debt

₹3 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.5%

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

Palm Jewels concludes 21st AGM, adopts FY26 financials

scanx.trade, 29 Sept

Compare with

Equitymaster, 08 Oct

52 Week High Shares BSE | 52 Week High Today | Shares Trading 52 Week High BSE

Livemint, 16 Oct

Palm Jewels appoints Ayushi Sahu as Company Secretary

scanx.trade, 01 Sept

Shringar House of Mangalsutra standalone net profit rises 19.26% in the June 2026 quarter

Business Standard, 13 AugResults

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

Lalithaa Jewellery Mart Share Price: Stock debuts at over 31% premium — Hold or Sell? Anil Singhvi’s views

Zee Business, 24 Aug

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🔴Business QualityWeak8.7/20

🟢Financial HealthStrong17.8/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate7.1/15

🟡ValuationFair9.5/15

🟡RiskModerate4.9/10

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.

This thesis breaks if

✓Revenue growth stays above 17% a year23.0% CAGR
✓EBITDA margin holds above -1%0.9%
✓Free cash flow remains positive₹1 Cr
✓Debt / EBITDA stays below 2x1.6x
✓ROCE stays above 8%8.8%