Shanti Gold International Limited

Consumer Cyclical — Luxury Goods · NSE

₹423.00+₹32.05 (+8.20%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shanti Gold International Limited engages in the design, development, manufacture, sale, and wholesale of gold and silver jewelry in India and internationally.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees286

Annual revenue₹2,019 Cr

How does it make money?

Turns over ₹2,019 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 286 employees supports ₹7.06 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹7.06 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 32.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 23.4% 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 is the outlook?

2 analysts covering the stock expect revenue to grow about 43.9% and earnings to grow about 32.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+43.9%

Est. earnings growth+32.0%

Analysts2

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +197% while net margin moved +138% 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+197%

Margin effect+138%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ 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

72/ 100

Good

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

Valuation

78/ 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

14.9x

1.3Y Median

27.7x

16 monthly readings · mean 25.0x · range 11.6x–31.8x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 46% below its 1.3y median of 27.7x. 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 78% below the peer median of 69.2x.

vs. its own history

Cheap

27.7x median over 16 months · -46%

vs. sector peers

Cheap

69.2x median of 4 peers · -78%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

16.6x

PEG

0.16

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 6.7% to 10.3% over 3 years.
High return on capital employed
ROCE of 32.6% 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 28.4% to 23.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 34.9% to 32.6% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 4 high · 1 watch

🔴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.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 255% against revenue up 197% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 307% against revenue up 197% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 31% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 32.6% 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 6.7% to 10.3%. 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 46% 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 78% 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 255% against revenue up 197%. 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 28.4% to 23.4%. 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
4 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 33% a year✓ 43.8% CAGR
Latest reported year was 144.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹267 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 30%✓ 32.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹3,246 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.9x

Cheap

Cheap against the generic band

P/B Ratio

4.67x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹28.4

Profitable

Profitable on a per-share basis

ROE

23.4%

Strong

Strong capital efficiency

ROCE

32.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.36x

Low

Conservative leverage

Revenue Growth (YoY)

144.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

53.5%

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

-₹267 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

14.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.9%

Average

Average margins

Net Margin

6.4%

Average

Average bottom-line conversion

Current Ratio

3.31

Comfortable

Healthy short-term liquidity

52W Range Position

99%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

329.9 / 281.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

82.4

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹679 Cr	₹711 Cr	₹1,106 Cr	₹2,019 Cr	+43.8%
EBITDA	₹45 Cr	₹53 Cr	₹95 Cr	₹208 Cr	+66.4%
EBITDA Margin	6.7%	7.5%	8.6%	10.3%	—
PAT (Net Profit)	₹20 Cr	₹27 Cr	₹54 Cr	₹140 Cr	+91.9%
EPS	₹2.75	₹3.72	₹7.5	₹21.21	+97.6%
ROE	28.4%	27.8%	39.3%	23.4%	—
ROCE	34.9%	33.0%	52.4%	32.6%	—
Total Debt	₹165 Cr	₹211 Cr	₹243 Cr	₹216 Cr	+9.4%
Free Cash Flow	-₹9 Cr	-₹23 Cr	-₹22 Cr	-₹267 Cr	—

🟢 Revenue has grown at 43.8% a year over 3 years.

🟢 EBITDA has grown at 66.4% a year over 3 years.

🟢 EBITDA Margin has risen from 6.7% to 10.3% over 3 years (+3.7 pts).

🟢 PAT (Net Profit) has grown at 91.9% a year over 3 years.

🟢 EPS has grown at 97.6% a year over 3 years.

🔴 ROE has fallen from 28.4% to 23.4% over 3 years (-5.0 pts).

🔴 ROCE has fallen from 34.9% to 32.6% over 3 years (-2.3 pts).

🔴 Total Debt has grown at 9.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹856 Cr

Total Liabilities

₹258 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹261 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.5%

Insider Holding

70.4%

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹412

-2.6% vs CMP

Target Range

₹350 – ₹474

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

SHANTIGOLD Stock Price and Chart — NSE:SHANTIGOLD

TradingView, 27 Sept

PC Jeweller, Shanti Gold & other jewellery stocks rally up to 10%. Here's why

The Economic Times, 16 Oct

Here's Why We Think Shanti Gold International (NSE:SHANTIGOLD) Might Deserve Your Attention Today

Simply Wall Street, 24 Sept

Senco, PC Jeweller zoom up to 17%; why are gold-related stocks dazzling?

Business Standard, 16 Oct

Is Shanti Gold International the Best Stock in Its Sector? A Look at the Numbers

Univest, 07 Oct

Shanti Gold International Ltd is Rated Buy

MarketsMojo, 13 Oct

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

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

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. 4 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 ↑