Silgo Retail Limited

Consumer Cyclical — Luxury Goods · NSE

₹69.94+₹0.67 (+0.97%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, 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, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Silgo Retail Limited designs, manufactures, retails, trades, and wholesales silver jewelry and precious stone in India. Its product portfolio includes rings, earrings, necklaces, pendants, bangles, bracelets, anklets, customized jewellery and lifestyle accessories.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees19

Annual revenue₹47 Cr

How does it make money?

Turns over ₹47 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 19 employees supports ₹2.48 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.48 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?Little sign of one

Returns on capital of 6.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +38% 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+38%

Margin effect+75%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.33 — 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

62/ 100

Average

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

Valuation

57/ 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

27.8x

3Y Median

19.0x

40 monthly readings · mean 21.3x · range 10.8x–34.9x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 46% above its 3y median of 19.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 60% below the peer median of 69.2x.

vs. its own history

Expensive

19.0x median over 40 months · +46%

vs. sector peers

Cheap

69.2x median of 4 peers · -60%

vs. generic bands

Fair

15x–35x

EV/EBITDA

27.8x

PEG

0.81

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 14.7% to 18.6% over 3 years.
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 Attention2

Return on equity is falling
ROE has dropped from 7.7% to 4.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.7% to 6.3% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 255% against revenue up 38% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹67 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 151% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 14.7% to 18.6%. 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 60% 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?

The price already assumes success
The stock trades 46% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 7.7% to 4.1%. 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 9% a year✓ 11.3% CAGR
Latest reported year was 10.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 18.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹67 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 6.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

5 good · 3 neutral · 3 weak

Market Cap

₹224 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.8x

Fair

Fairly valued against the generic band

P/B Ratio

1.34x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.52

Profitable

Profitable on a per-share basis

ROE

4.1%

Weak

Weak capital efficiency

ROCE

6.3%

Weak

Low return on total capital employed

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

10.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

26.8%

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

-₹67 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

32.4%

Good

Healthy core-business profitability

Net Margin

13.9%

Good

Strong bottom-line conversion

Current Ratio

5.75

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.33

Defensive

Steadier than the market

52W Range Position

35%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

69.9 / 70.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹34 Cr	₹35 Cr	₹44 Cr	₹47 Cr	+11.3%
EBITDA	₹5 Cr	₹6 Cr	₹6 Cr	₹9 Cr	+20.3%
EBITDA Margin	14.7%	15.8%	14.1%	18.6%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹4 Cr	₹6 Cr	+34.3%
EPS	₹1.85	₹2.82	₹2.36	₹2.37	+8.7%
ROE	7.7%	5.8%	7.7%	4.1%	—
ROCE	14.7%	10.1%	10.6%	6.3%	—
Total Debt	₹19 Cr	₹7 Cr	—	₹20 Cr	+2.5%
Free Cash Flow	₹2 Cr	₹2 Cr	-₹1 Cr	-₹67 Cr	—

🟢 Revenue has grown at 11.3% a year over 3 years.

🟢 EBITDA has grown at 20.3% a year over 3 years.

🟢 EBITDA Margin has risen from 14.7% to 18.6% over 3 years (+3.8 pts).

🟢 PAT (Net Profit) has grown at 34.3% a year over 3 years.

🟢 EPS has grown at 8.7% a year over 3 years.

🔴 ROE has fallen from 7.7% to 4.1% over 3 years (-3.5 pts).

🔴 ROCE has fallen from 14.7% to 6.3% over 3 years (-8.4 pts).

🔴 Total Debt has grown at 2.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹67 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹162 Cr

Total Liabilities

₹24 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹67 Cr

Capex

—

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 positive5 general

Silgo Retail Share Price Forecast to 2030

Univest, 29 Jul

Silver Prices Drop to ₹2,350 on Oct 13; City-Wise Rates

HDFC Sky, 13 Oct

Silgo Retail (SILGO.NS) Slips 2.08% to ₹70.25, Sitting Precisely at the Midpoint of Its ₹66.74–₹73.76 Range

https://www.siam.in/, 14 Sept

Compare Tara Jewels with

Equitymaster, 28 Sept

Silgo Retail subsidiaries secure PPAs for 37 MW solar projects

scanx.trade, 17 Jun

Upcoming buyback, bonus issue this week: Orient Technologies, Silgo Retail, Fairchem Organics in focus

Upstox, 04 JanCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑