Sunraj Diamond Exports Limited

Consumer Cyclical — Luxury Goods · BSE

₹12.50₹0.00 (0.00%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

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, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Sunraj Diamond Exports Limited engages in the business of manufacturing, trading, and exporting of gems and precious metals in India. The company offers gold jewellery, rough diamonds, cut and polished diamonds, and silver items.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees5

Annual revenue₹2 Cr

How does it make money?

Turns over ₹2 Cr a year. Of every ₹100 of sales, about ₹-1 reaches shareholders as profit, with ₹-6 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹46.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹46.7 lakh

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 -17.5% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +71% while net margin moved -104% 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+71%

Margin effect-104%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 138.9x is demanding — it needs sustained high growth to justify
✗ P/E is 565% above its own historical median of 20.9x — expensive by its own standards
✗ P/B of 6.94x is a steep premium to book

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

25/ 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

138.9x

3Y Median

20.9x

40 monthly readings · mean 68.9x · range 10.6x–209.3x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 565% above its 3y median of 20.9x. 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 101% above the peer median of 69.2x.

vs. its own history

Expensive

20.9x median over 40 months · +565%

vs. sector peers

Expensive

69.2x median of 4 peers · +101%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 11% over 3 years.
Cash generation is improving
Free cash flow is up 160% over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 30.9% to -2.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 31.2% to -17.5% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 4 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 15.24x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -14.4x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 32.9 points, from 26.5% to -6.5%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 7.9x to -14.4x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 26.5% to -6.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 15.24x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 565% 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 30.9% to -2.5%. 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.

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

1Revenue growth stays above 15% a year✓ 19.5% CAGR
Latest reported year was 93.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -8%✓ -6.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✗ -14.4x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ -17.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

3 good · 2 neutral · 6 weak

Market Cap

₹7 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

138.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.94x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹0.09

Profitable

Profitable on a per-share basis

ROE

-2.5%

Weak

Weak capital efficiency

ROCE

-17.5%

Weak

Low return on total capital employed

Debt/Equity

15.24x

High

High leverage

Revenue Growth (YoY)

93.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-140.1%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-17.1%

Weak

Thin margins leave little room for error

Net Margin

1.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.03

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.25

Defensive

Steadier than the market

52W Range Position

17%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

12.5 / 12.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

55.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹3 Cr	₹2 Cr	₹2 Cr	+19.5%
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	-₹0 Cr	—
EBITDA Margin	26.5%	5.3%	6.3%	-6.5%	—
PAT (Net Profit)	₹0 Cr	-₹0 Cr	₹0 Cr	-₹0 Cr	—
EPS	₹0.63	₹-0.3	₹0.11	₹-0.05	—
ROE	30.9%	-17.3%	6.1%	-2.5%	—
ROCE	31.2%	11.4%	9.3%	-17.5%	—
Total Debt	₹16 Cr	₹16 Cr	₹17 Cr	₹15 Cr	-3.8%
Free Cash Flow	₹1 Cr	-₹0 Cr	-₹0 Cr	₹2 Cr	+37.4%

🟢 Revenue has grown at 19.5% a year over 3 years.

🔴 EBITDA has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EBITDA Margin has fallen from 26.5% to -6.5% over 3 years (-32.9 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EPS has turned negative, from ₹0.63 to ₹-0.05.

🔴 ROE has fallen from 30.9% to -2.5% over 3 years (-33.4 pts).

🔴 ROCE has fallen from 31.2% to -17.5% over 3 years (-48.7 pts).

🟢 Total Debt has shrunk at 3.8% a year over 3 years.

🟢 Free Cash Flow has grown at 37.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹26 Cr

Total Liabilities

₹25 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

54.1%

Corporate Actions

Ex-Dividend Date

20 Sept 2013

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 positive1 negative4 general

Sunraj Diamond Exports FY26 Results: Standalone profit down 41% YoY

scanx.trade, 30 SeptResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Sunraj Diamond Exports (BSE:SUNRAJDI) and the Diamond Trade

Kalkine India, 12 Sept

AURUS Stock Price and Chart — NSE:AURUS

TradingView, 14 Jul

Sunraj Diamond Exports adopts FY26 financials at 36th AGM

scanx.trade, 30 Sept

CIAN Agro Industries & Infrastructure consolidated net profit rises 186.73% in the June 2026 quarter

Business Standard, 15 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

SUNRAJ DIAMOND EXPORTS LTD. Share Price

Upstox, 07 Apr

Watch Items

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

DalalBaazaar Thesis

StrongGrowth

MiddlingFinancial Health

WeakBusiness Quality · Profitability · Valuation · Risk

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

2 of 5 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑