SMR Jewels Limited

Consumer Cyclical — Luxury Goods · BSE

₹130.32+₹17.61 (+15.62%)

DalalBaazaar Score

66 / 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, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

SMR Jewels Limited engages in the manufacture, sale, trading, and job work of jewelry and other accessories in India.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees25

Annual revenue₹263 Cr

How does it make money?

Turns over ₹263 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 25 employees supports ₹10.53 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹10.53 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 47.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 66.7% 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?

Sales and margins have both contributed to where profit is now. Over 2 years revenue moved +290% while net margin moved +194% 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+290%

Margin effect+194%

DalalBaazaar Score

66/ 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

71/ 100

Good

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

Valuation

69/ 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

16.1x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 77% 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 · -77%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.9x

PEG

0.07

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 2.6% to 5.8% over 2 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 2 years.
Return on capital is rising
ROCE has improved from 31.6% to 47.9%.
High return on capital employed
ROCE of 47.9% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 87.7% to 43.1% — each rupee of shareholder capital earns less than it did.

Red Flags

1 item require attention · 1 watch

🟡Debt is increasingFinancial
Total debt is up 35% over 2 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 47.9% 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 2.6% to 5.8%. 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 77% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹1 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 87.7% to 43.1%. 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.
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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 73% a year✓ 97.5% CAGR
Latest reported year was 111.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 5.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 45%✓ 47.9%
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

6 good · 4 neutral · 1 weak

Market Cap

₹243 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.1x

Fair

Fairly valued against the generic band

P/B Ratio

3.86x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹8.08

Profitable

Profitable on a per-share basis

ROE

66.7%

Strong

Strong capital efficiency

ROCE

47.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.35x

Low

Conservative leverage

Revenue Growth (YoY)

111.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

170.8%

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

-₹23 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

34.4%

Good

Assets are working hard

Operating Margin

7.3%

Average

Average margins

Net Margin

5.7%

Average

Average bottom-line conversion

Current Ratio

3.31

Comfortable

Healthy short-term liquidity

52W Range Position

92%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

98.2 / 95.1

Bullish alignment (short > long)

RSI (14)

84.7

Overbought zone

Financial Trend (3-Year)

Metric	FY23	FY24	FY25	2Y CAGR
Revenue	₹68 Cr	₹124 Cr	₹263 Cr	+97.5%
EBITDA	₹2 Cr	₹6 Cr	₹15 Cr	+191.8%
EBITDA Margin	2.6%	4.9%	5.8%	—
PAT (Net Profit)	₹1 Cr	₹4 Cr	₹10 Cr	+238.4%
EPS	₹0.49	₹2.06	₹5.58	+238.4%
ROE	87.7%	78.8%	43.1%	—
ROCE	31.6%	59.1%	47.9%	—
Total Debt	₹6 Cr	₹8 Cr	₹9 Cr	+16.4%
Free Cash Flow	-₹1 Cr	-₹1 Cr	₹1 Cr	—

🟢 Revenue has grown at 97.5% a year over 2 years.

🟢 EBITDA has grown at 191.8% a year over 2 years.

🟢 EBITDA Margin has risen from 2.6% to 5.8% over 2 years (+3.1 pts).

🟢 PAT (Net Profit) has grown at 238.4% a year over 2 years.

🟢 EPS has grown at 238.4% a year over 2 years.

🔴 ROE has fallen from 87.7% to 43.1% over 2 years (-44.6 pts).

🟢 ROCE has risen from 31.6% to 47.9% over 2 years (+16.2 pts).

🔴 Total Debt has grown at 16.4% a year over 2 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹43 Cr

Total Liabilities

₹19 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

6.6%

Insider Holding

78.6%

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

3 mixed3 general

SMR Jewels Ltd. Share Price Near 52-Week High, Key Metrics

Univest, 15 Oct

SMR Jewels Ltd. Share Price Rise Streak after 23.03% gain

Univest, 16 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.

SMR Jewels share price gains after listing with 20% discount on BSE SME

Livemint, 08 JunPrice 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.

SMR Jewels Share Price Gains After Weak SME Listing: What Investors Should Know

Samco, 08 JunPrice 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.

SMR Jewels Limited Share Price

Upstox, 06 Jun

SMR Jewels begins Jewellery Studio construction with IPO proceeds

scanx.trade, 24 Aug

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

MiddlingBusiness Quality · Profitability · Valuation

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.

All 5 tripwires holding · see Key things to watch ↑