Advit Jewels Limited

Consumer Cyclical — Luxury Goods · NSE

₹391.55+₹4.10 (+1.06%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:51 pm

Understanding the Business

Company site ↗

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

What does this company do?

Advit Jewels Limited designs, manufactures, and sells traditional and contemporary handcrafted fine jewelry. The company offers necklaces, earrings, rings, bangles, and other customized jewelry pieces primarily with gold, diamonds, and colored stones.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees118

Annual revenue₹167 Cr

How does it make money?

Turns over ₹167 Cr a year. Of every ₹100 of sales, about ₹21 reaches shareholders as profit, with ₹30 left at the operating level before interest, tax and depreciation. Each of its 118 employees supports ₹1.42 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.42 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 46.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 37.1% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +258% while net margin moved -8% 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+258%

Margin effect-8%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 48.9x is demanding — it needs sustained high growth to justify
✗ P/B of 13.25x is a steep premium to book

Quality vs. Valuation

Company Quality

74/ 100

Good

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

Valuation

56/ 100

Fair

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.

Historical Valuation

Current P/E

48.9x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 29% below the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

69.2x median of 4 peers · -29%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

37.8x

PEG

1.00

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 27.4% to 29.5% 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 46.3% 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 57.5% to 37.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 69.5% to 46.3% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 1102% over 3 years, from ₹6 Cr to ₹73 Cr.
🔴Inventory building faster than salesFinancial
Inventory up 1227% against revenue up 258% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 46.3% 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 27.4% to 29.5%. 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 29% 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?

Returns on shareholder capital are falling
ROE has dropped from 57.5% to 37.1%. 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.
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 40% a year✓ 53.0% CAGR
Latest reported year was 37.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 28%✓ 29.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 43%✓ 46.3%
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

6 good · 3 neutral · 2 weak

Market Cap

₹1,794 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

48.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

13.25x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹8

Profitable

Profitable on a per-share basis

ROE

37.1%

Strong

Strong capital efficiency

ROCE

46.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.79x

Moderate

Moderate leverage

Revenue Growth (YoY)

37.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

32.6%

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

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

31.9%

Good

Healthy core-business profitability

Net Margin

20.8%

Good

Strong bottom-line conversion

Current Ratio

2.21

Comfortable

Healthy short-term liquidity

52W Range Position

95%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

324.0 / 264.7

Bullish alignment (short > long)

RSI (14)

80.7

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹47 Cr	₹69 Cr	₹125 Cr	₹167 Cr	+53.0%
EBITDA	₹13 Cr	₹19 Cr	₹37 Cr	₹49 Cr	+56.9%
EBITDA Margin	27.4%	27.3%	29.6%	29.5%	—
PAT (Net Profit)	₹10 Cr	₹15 Cr	₹25 Cr	₹34 Cr	+49.0%
EPS	₹2.27	₹3.21	₹5.54	—	—
ROE	57.5%	44.8%	43.6%	37.1%	—
ROCE	69.5%	55.4%	52.6%	46.3%	—
Total Debt	₹6 Cr	₹21 Cr	₹76 Cr	₹73 Cr	+129.1%
Free Cash Flow	-₹3 Cr	-₹13 Cr	-₹50 Cr	₹7 Cr	—

🟢 Revenue has grown at 53.0% a year over 3 years.

🟢 EBITDA has grown at 56.9% a year over 3 years.

🟢 EBITDA Margin has risen from 27.4% to 29.5% over 3 years (+2.1 pts).

🟢 PAT (Net Profit) has grown at 49.0% a year over 3 years.

🔴 ROE has fallen from 57.5% to 37.1% over 3 years (-20.3 pts).

🔴 ROCE has fallen from 69.5% to 46.3% over 3 years (-23.2 pts).

🔴 Total Debt has grown at 129.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹3 Cr to ₹7 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹172 Cr

Total Liabilities

₹79 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹13 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

4.1%

Insider Holding

73.7%

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

6 general

ADVIT JEWELS LIMITED Share Price - Live NSE: RAMBHAJO Stock Price & Chart

Upstox, 16 Oct

ADVIT JEWELS LIMITED Share Price: near 52-week high update

Univest, 16 Oct

Advit Jewels Ltd. IPO Review - Advit Jewels Ltd. IPO Dates, Issue Price, Subscription and Allotment Status

The Economic Times, 13 Oct

Advit Jewels (RAMBHAJO) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Advit Jewels to host investor meet in Jaipur on October 24

scanx.trade, 16 Oct

Advit Jewels share price slides 5% after strong 37% market debut. Should you buy, sell or hold?

The Economic Times, 01 Jul

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

StrongBusiness Quality · Financial Health · Growth · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑