StarlinePS Enterprises Limited

Consumer Cyclical — Luxury Goods · BSE

₹7.73−₹0.03 (−0.39%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, 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, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:06 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Starlineps Enterprises Limited trades in precious metals, stones, and jewelry in India. The company was formerly known as Starline Precious Stone Limited and changed its name to Starlineps Enterprises Limited in December 2020.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees5

Annual revenue₹98 Cr

How does it make money?

Turns over ₹98 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹19.53 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin7.4%

Net margin1.2%

Revenue / employee₹19.53 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.

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?Little sign of one

Returns on capital of 1.1% 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.

ROCE1.1%

ROE0.7%

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 +388% while net margin moved -62% 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+388%

Margin effect-62%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.7% is weak

Quality vs. Valuation

Company Quality

47/ 100

Average

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

Valuation

34/ 100

Expensive

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

128.8x

3Y Median

156.3x

40 monthly readings · mean 2011.7x · range 11.1x–7558.4x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 18% below its 3y median of 156.3x. 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 86% above the peer median of 69.2x.

vs. its own history

Fair

156.3x median over 40 months · -18%

vs. sector peers

Expensive

69.2x median of 4 peers · +86%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

128.8x

P/B

1.99x

EV/EBITDA

28.9x

PEG

5.75

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 4.2% to 7.4% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 3.4% to 1.1% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 2973% against revenue growth of 388% — customers are taking longer to pay.

Red Flags

5 items require attention · 2 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 2.36x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 2973% against revenue up 388% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 254.7x to 5.8x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹17 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 31% 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 4.2% to 7.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Leverage amplifies any setback
Debt/Equity of 2.36x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 2973% against revenue up 388%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 86% above the peer median. That premium needs a reason that persists, or it closes.
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 52% a year✓ 69.7% CAGR
Latest reported year was 60.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹17 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 1.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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

2 good · 3 neutral · 6 weak

Market Cap

₹333 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

128.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.99x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.06

Profitable

Profitable on a per-share basis

ROE

0.7%

Weak

Weak capital efficiency

ROCE

1.1%

Weak

Low return on total capital employed

Debt/Equity

2.36x

High

High leverage

Revenue Growth (YoY)

60.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-66.7%

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

-₹17 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹7.73

Operating Margin

3.0%

Weak

Thin margins leave little room for error

Net Margin

0.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

17.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.61

Defensive

Steadier than the market

52W Range Position

46%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

8.0 / 8.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹20 Cr	₹30 Cr	₹73 Cr	₹98 Cr	+69.7%
EBITDA	₹1 Cr	₹2 Cr	₹9 Cr	₹7 Cr	+104.6%
EBITDA Margin	4.2%	8.4%	12.0%	7.4%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹7 Cr	₹1 Cr	+22.4%
EPS	₹0.02	₹0.05	₹0.2	₹0.02	+2.9%
ROE	2.5%	6.8%	20.0%	0.7%	—
ROCE	3.4%	9.4%	26.8%	1.1%	—
Total Debt	—	₹0 Cr	—	₹4 Cr	—
Free Cash Flow	₹2 Cr	₹12 Cr	₹2 Cr	-₹17 Cr	—

🟢 Revenue has grown at 69.7% a year over 3 years.

🟢 EBITDA has grown at 104.6% a year over 3 years.

🟢 EBITDA Margin has risen from 4.2% to 7.4% over 3 years (+3.2 pts).

🟢 PAT (Net Profit) has grown at 22.4% a year over 3 years.

🟢 EPS has grown at 2.9% a year over 3 years.

🔴 ROE has fallen from 2.5% to 0.7% over 3 years (-1.8 pts).

🔴 ROCE has fallen from 3.4% to 1.1% over 3 years (-2.2 pts).

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹17 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹177 Cr

Total Liabilities

₹10 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹127 Cr

Operating Cash Flow

-₹17 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

53.1%

Corporate Actions

Ex-Dividend Date

23 Feb 2022

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

Starlineps Enterprises - 8 penny stocks surged up to 205% in 3 months. Do you own any?

The Economic Times, 12 Apr

Starlineps Enterprises invests ₹160 crore in Celloraa Energy

scanx.trade, 29 Jun

Starlineps Enterprises Preferential Issue In-Principle Approval From BSE; Shares Fall 1.92%

HDFC Sky, 10 MarPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

StarlinePS Enterprises Partners with Celloraa Energy to Set Up 1.2 GW Solar Cell Manufacturing Facility in Surat

Business Standard, 03 Jul

Best Penny Stocks of 2026: Are They a Good Investment?

Equitymaster, 02 Apr

Starlineps Enterprises - 9 penny stocks surge up to 325% in 2026 so far; 3 turn multibaggers. Did you own any?

The Economic Times, 16 Aug

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟡Financial HealthAdequate10.6/20

🟡GrowthModest12.9/20

🔴ProfitabilityWeak4.5/15

🟡ValuationFair6.9/15

🔴RiskHigh3.7/10

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.

This thesis breaks if

✓Revenue growth stays above 52% a year69.7% CAGR
✓EBITDA margin holds above 5%7.4%
✗Free cash flow remains positive-₹17 Cr
✓Debt / EBITDA stays below 2x0.5x
✗ROCE stays above 8%1.1%