RBZ Jewellers Limited

Consumer Cyclical — Luxury Goods · NSE

₹199.41+₹9.49 (+5.00%)

DalalBaazaar Score

68 / 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, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

RBZ Jewellers Limited manufactures and trades in jewelries and other accessories in India. The company offers haaram, bridal choker, round necklace, and occasional and daily wear on a wholesale and retail network basis.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees315

Annual revenue₹636 Cr

How does it make money?

Turns over ₹636 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 315 employees supports ₹2.02 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.02 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 24.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.3% 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 +121% while net margin moved +11% 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+121%

Margin effect+11%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.04 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Trading within 10% of its 52-week high — entries here carry more pullback risk
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

69/ 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

14.1x

3Y Median

20.6x

36 monthly readings · mean 20.0x · range 10.5x–35.0x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 32% below its 3y median of 20.6x. 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 80% below the peer median of 69.2x.

vs. its own history

Cheap

20.6x median over 36 months · -32%

vs. sector peers

Cheap

69.2x median of 4 peers · -80%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.7x

PEG

0.40

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 24.2% 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 24.2% to 18.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 31.8% to 24.2% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 77% over 3 years, from ₹96 Cr to ₹170 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Receivables growing faster than salesFinancial
Receivables up 154% against revenue up 121% — 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 24.2% 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.
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 80% 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 154% against revenue up 121%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 24.2% to 18.3%. 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 23% a year✓ 30.3% CAGR
Latest reported year was 59.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 14.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹40 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 21%✓ 24.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

₹798 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.1x

Cheap

Cheap against the generic band

P/B Ratio

2.66x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹14.19

Profitable

Profitable on a per-share basis

ROE

18.3%

Strong

Strong capital efficiency

ROCE

24.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.57x

Low

Conservative leverage

Revenue Growth (YoY)

59.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

27.5%

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

-₹40 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

13.5%

Average

Average margins

Net Margin

8.3%

Average

Average bottom-line conversion

Current Ratio

2.99

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.04

Defensive

Steadier than the market

52W Range Position

92%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

188.6 / 169.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

60.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹288 Cr	₹327 Cr	₹530 Cr	₹636 Cr	+30.3%
EBITDA	₹37 Cr	₹38 Cr	₹64 Cr	₹90 Cr	+34.2%
EBITDA Margin	13.0%	11.7%	12.2%	14.2%	—
PAT (Net Profit)	₹22 Cr	₹22 Cr	₹39 Cr	₹55 Cr	+34.9%
EPS	₹5.58	₹6.61	₹9.7	₹13.7	+34.9%
ROE	24.2%	10.4%	15.8%	18.3%	—
ROCE	31.8%	16.1%	24.4%	24.2%	—
Total Debt	₹96 Cr	₹69 Cr	₹91 Cr	₹170 Cr	+21.0%
Free Cash Flow	-₹25 Cr	-₹53 Cr	-₹20 Cr	-₹40 Cr	—

🟢 Revenue has grown at 30.3% a year over 3 years.

🟢 EBITDA has grown at 34.2% a year over 3 years.

🟢 EBITDA Margin has risen from 13.0% to 14.2% over 3 years (+1.2 pts).

🟢 PAT (Net Profit) has grown at 34.9% a year over 3 years.

🟢 EPS has grown at 34.9% a year over 3 years.

🔴 ROE has fallen from 24.2% to 18.3% over 3 years (-5.9 pts).

🔴 ROCE has fallen from 31.8% to 24.2% over 3 years (-7.6 pts).

🔴 Total Debt has grown at 21.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹486 Cr

Total Liabilities

₹186 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹7 Cr

Capex

-₹33 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.7%

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

1 positive1 mixed4 general

RBZ Jewellers Share Price Target 2027 to 2030: Analyst Outlook

Univest, 14 AugAnalyst view

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

RBZ Jewellers Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

RBZ Jewellers outlines retail push, GML strategy in Q1FY27 call

scanx.trade, 11 Aug

With EPS Growth And More, RBZ Jewellers (NSE:RBZJEWEL) Makes An Interesting Case

Simply Wall Street, 04 Sept

RBZ Jewellers Share Price Near 52-Week High, Price Action

Univest, 30 Sept

RBZ Jewellers standalone net profit rises 27.67% in the June 2026 quarter

Business Standard, 11 AugResults

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

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.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health · Profitability · Risk

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

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑