Shringar House of Mangalsutra Limited

Consumer Cyclical — Luxury Goods · NSE

₹314.00+₹16.58 (+5.57%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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 Shringar House of Mangalsutra Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shringar House of Mangalsutra Limited engages in the design, manufacture, and market of mangalsutras in India and internationally. It serves corporate clients, wholesale jewellers, and retailers. The company was founded in 1963 and is headquartered in Mumbai, India.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees329

Annual revenue₹2,641 Cr

How does it make money?

Turns over ₹2,641 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹23 left at the operating level before interest, tax and depreciation. Each of its 329 employees supports ₹8.03 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin23.0%

Net margin4.4%

Revenue / employee₹8.03 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 23.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 17.0% 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.

ROCE23.3%

ROE17.0%

Peer median ROE25.9%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 34.4% and earnings to grow about 25.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+34.4%

Est. earnings growth+25.5%

Analysts1

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 +183% while net margin moved +75% 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+183%

Margin effect+75%

DalalBaazaar Score

65/ 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

68/ 100

Good

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

Valuation

82/ 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

23.8x

1.3Y Median

33.1x

15 monthly readings · mean 29.7x · range 16.2x–36.9x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 28% below its 1.3y median of 33.1x. 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 66% below the peer median of 69.2x.

vs. its own history

Cheap

33.1x median over 15 months · -28%

vs. sector peers

Cheap

69.2x median of 4 peers · -66%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

23.8x

P/B

4.46x

EV/EBITDA

5.2x

PEG

0.34

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 4.1% to 23.0% over 3 years.
High return on capital employed
ROCE of 23.3% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 23.8x the stock trades 28% below its own median of 33.1x.
Very low debt
Debt/Equity of 0.28x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Debt is rising
Total debt is up 103% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 22.1% to 17.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 28.6% to 23.3% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 402% against revenue growth of 183% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 324% against revenue growth of 183% — stock may not be moving.

Red Flags

5 items require attention · 5 high

🔴Debt has risen sharplyFinancial
Total debt is up 103% over 3 years, from ₹93 Cr to ₹189 Cr.
🔴Free cash flow negative for 3 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 402% against revenue up 183% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 324% against revenue up 183% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.3% 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 4.1% to 23.0%. 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 28% 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 66% 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 402% against revenue up 183%. 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 22.1% to 17.0%. 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
5 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 31% a year✓ 41.4% CAGR
Latest reported year was 64.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 21%✓ 23.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹290 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 23.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹3,028 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.8x

Fair

Fairly valued against the generic band

P/B Ratio

4.46x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹13.18

Profitable

Profitable on a per-share basis

ROE

17.0%

Strong

Strong capital efficiency

ROCE

23.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.28x

Low

Conservative leverage

Revenue Growth (YoY)

64.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-10.6%

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

-₹290 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹314

P/E (Forward)

12.0x

Improving

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

Operating Margin

8.7%

Average

Average margins

Net Margin

4.9%

Average

Average bottom-line conversion

Current Ratio

4.00

Comfortable

Healthy short-term liquidity

52W Range Position

93%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

237.5 / 228.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

80.3

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹934 Cr	₹1,082 Cr	₹1,403 Cr	₹2,641 Cr	+41.4%
EBITDA	₹38 Cr	₹50 Cr	₹93 Cr	₹608 Cr	+151.8%
EBITDA Margin	4.1%	4.6%	6.6%	23.0%	—
PAT (Net Profit)	₹23 Cr	₹31 Cr	₹61 Cr	₹115 Cr	+70.4%
EPS	₹2.42	₹3.23	₹6.34	₹13.55	+77.5%
ROE	22.1%	22.7%	30.4%	17.0%	—
ROCE	28.6%	32.4%	43.8%	23.3%	—
Total Debt	₹93 Cr	₹110 Cr	₹123 Cr	₹189 Cr	+26.6%
Free Cash Flow	₹10 Cr	-₹15 Cr	-₹9 Cr	-₹290 Cr	—

🟢 Revenue has grown at 41.4% a year over 3 years.

🟢 EBITDA has grown at 151.8% a year over 3 years.

🟢 EBITDA Margin has risen from 4.1% to 23.0% over 3 years (+18.9 pts).

🟢 PAT (Net Profit) has grown at 70.4% a year over 3 years.

🟢 EPS has grown at 77.5% a year over 3 years.

🔴 ROE has fallen from 22.1% to 17.0% over 3 years (-5.1 pts).

🔴 ROCE has fallen from 28.6% to 23.3% over 3 years (-5.3 pts).

🔴 Total Debt has grown at 26.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹10 Cr to -₹290 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹892 Cr

Total Liabilities

₹214 Cr

Total Debt

₹189 Cr

Cash & Equivalents

₹25 Cr

Operating Cash Flow

-₹282 Cr

Capex

-₹9 Cr

Shareholding (proxy)

Institutional Holding

2.7%

Insider Holding

76.6%

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹315

+0.3% vs CMP

Target Range

₹315 – ₹315

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 mixed5 general

Shringar House of Mangalsutra share price jumps 15% today | 47% returns in 2026 | Check target, stop loss | Buy or sell?

Livemint, 13 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

If EPS Growth Is Important To You, Shringar House of Mangalsutra (NSE:SHRINGARMS) Presents An Opportunity

Simply Wall Street, 13 Oct

Shringar House of Mangalsutra (SHRINGARMS) Share Price near 52-week high on Friday trade

Univest, 14 Oct

Shringar House Of Mangalsutra Ltd | Stock Share Price Live

MarketSmith India, 03 Jun

Shringar House of Mangalsutra Ltd Hits Intraday Low Amid Price Pressure

MarketsMojo, 15 Oct

Shringar House of Mangalsutra (SHRINGARMS.NS) Slips 2.05% to ₹220 as Stock Tests Key Support Zone - Fibonacci Retracement

https://www.siam.in/, 02 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

🟡Business QualityAdequate12.4/20

🟢Financial HealthStrong13/20

🟢GrowthStrong18.5/20

🟡ProfitabilityModerate7.3/15

🟢ValuationAttractive10.7/15

🔴RiskHigh3/10

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

This thesis breaks if

✓Revenue growth stays above 31% a year41.4% CAGR
✓EBITDA margin holds above 21%23.0%
✗Free cash flow remains positive-₹290 Cr
✓Debt / EBITDA stays below 2x0.3x
✓ROCE stays above 20%23.3%