Radhika Jeweltech Limited

Consumer Cyclical — Luxury Goods · NSE

₹68.70+₹1.93 (+2.89%)

DalalBaazaar Score

75 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 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 Radhika Jeweltech Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Radhika Jeweltech Limited engages in the manufacture and retail of jewelry in India. The company operates retail outlets that sell platinum, bespoke, gold and gold jewellery, loose diamond and diamond jewellery, as well as customized and polki jewelry.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees114

Annual revenue₹639 Cr

How does it make money?

Turns over ₹639 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 114 employees supports ₹5.61 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin16.2%

Net margin11.7%

Revenue / employee₹5.61 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.

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 25.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.8% 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.

ROCE25.3%

ROE18.8%

Peer median ROE25.9%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +104% while net margin moved +23% 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+104%

Margin effect+23%

DalalBaazaar Score

75/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.69 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

79/ 100

Good

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

Valuation

81/ 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

10.2x

3Y Median

18.2x

40 monthly readings · mean 18.9x · range 9.9x–35.7x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 44% below its 3y median of 18.2x. 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 85% below the peer median of 69.2x.

vs. its own history

Cheap

18.2x median over 40 months · -44%

vs. sector peers

Cheap

69.2x median of 4 peers · -85%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

10.2x

P/B

2.04x

EV/EBITDA

8.3x

PEG

0.28

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 13.1% to 16.2% over 3 years.
Return on equity is rising
ROE has improved from 13.8% to 18.8%.
Return on capital is rising
ROCE has improved from 18.1% to 25.3%.
High return on capital employed
ROCE of 25.3% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 10.2x the stock trades 44% below its own median of 18.2x.
Very low debt
Debt/Equity of 0.15x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 72% 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 142% against revenue growth of 104% — customers are taking longer to pay.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 72% over 3 years, from ₹34 Cr to ₹58 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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹14 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 142% against revenue up 104% — 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 25.3% 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 13.1% to 16.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 44% 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 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?

Sales are being booked faster than collected
Receivables are up 142% against revenue up 104%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 20% a year✓ 26.9% CAGR
Latest reported year was 53.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 16.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹14 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 25.3%
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

7 good · 3 neutral · 1 weak

Market Cap

₹812 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.2x

Cheap

Cheap against the generic band

P/B Ratio

2.04x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.74

Profitable

Profitable on a per-share basis

ROE

18.8%

Strong

Strong capital efficiency

ROCE

25.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

53.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

25.8%

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

-₹14 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹68.7

Operating Margin

19.8%

Good

Healthy core-business profitability

Net Margin

11.5%

Good

Strong bottom-line conversion

Current Ratio

6.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.69

Defensive

Steadier than the market

52W Range Position

39%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

69.2 / 71.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

44.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹313 Cr	₹544 Cr	₹588 Cr	₹639 Cr	+26.9%
EBITDA	₹41 Cr	₹71 Cr	₹89 Cr	₹104 Cr	+36.3%
EBITDA Margin	13.1%	13.1%	15.2%	16.2%	—
PAT (Net Profit)	₹30 Cr	₹50 Cr	₹60 Cr	₹75 Cr	+36.1%
EPS	₹2.52	₹4.2	₹5.09	₹6.34	+36.0%
ROE	13.8%	18.7%	18.6%	18.8%	—
ROCE	18.1%	25.2%	26.4%	25.3%	—
Total Debt	₹34 Cr	₹51 Cr	₹43 Cr	₹58 Cr	+19.8%
Free Cash Flow	-₹26 Cr	-₹26 Cr	₹16 Cr	-₹14 Cr	—

🟢 Revenue has grown at 26.9% a year over 3 years.

🟢 EBITDA has grown at 36.3% a year over 3 years.

🟢 EBITDA Margin has risen from 13.1% to 16.2% over 3 years (+3.1 pts).

🟢 PAT (Net Profit) has grown at 36.1% a year over 3 years.

🟢 EPS has grown at 36.0% a year over 3 years.

🟢 ROE has risen from 13.8% to 18.8% over 3 years (+5.0 pts).

🟢 ROCE has risen from 18.1% to 25.3% over 3 years (+7.2 pts).

🔴 Total Debt has grown at 19.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹480 Cr

Total Liabilities

₹82 Cr

Total Debt

₹58 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

-₹13 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.8%

Corporate Actions

Ex-Dividend Date

23 Sept 2024

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 mixed1 negative4 general

Radhika Jeweltech Share Price Forecast: 3 Year Outlook to 2030

Univest, 23 Jul

Radhika Jeweltech Reports ₹190 Cr Q4 Revenue as Margin Contraction Drags Profit Down 32%

Sahi, 20 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Does Radhika Jeweltech (NSE:RADHIKAJWE) Deserve A Spot On Your Watchlist?

Simply Wall Street, 10 Sept

Radhika Jeweltech (RADHIKAJWE.NS) Sheds 0.39% to ₹71.32; Support Base at ₹67.75 in Focus - Dealer Positioning

siam.in, 03 Sept

Radhika Jeweltech shareholders approve all resolutions at 10th AGM

scanx.trade, 02 Oct

Radhika Jeweltech Share Price Target 2026: Bull Case Rs 80.00

Univest, 29 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong15.4/20

🟢Financial HealthStrong13/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong12/15

🟢ValuationAttractive11.8/15

🔴RiskHigh4.4/10

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

This thesis breaks if

✓Revenue growth stays above 20% a year26.9% CAGR
✓EBITDA margin holds above 14%16.2%
✗Free cash flow remains positive-₹14 Cr
✓Debt / EBITDA stays below 2x0.6x
✓ROCE stays above 22%25.3%