Uday Jewellery Industries Limited

Consumer Cyclical — Luxury Goods · NSE

₹231.90+₹8.81 (+3.95%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Uday Jewellery Industries Limited engages in the manufacturing and sales of fashion jewellery in India and internationally. The company offers gold jewellery studded with precious and semi-precious natural gemstones, flat diamonds, rose cut diamonds, diamonds, and cubic zirconia.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees488

Annual revenue₹725 Cr

How does it make money?

Turns over ₹725 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 488 employees supports ₹1.49 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.49 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 26.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 17.2% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +310% while net margin moved -8% 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+310%

Margin effect-8%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.13 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

65/ 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

19.3x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 72% 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 · -72%

vs. generic bands

Fair

15x–35x

EV/EBITDA

18.0x

PEG

0.35

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 14.0% to 17.2%.
Return on capital is rising
ROCE has improved from 21.1% to 26.7%.
High return on capital employed
ROCE of 26.7% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 388% over 3 years, from ₹33 Cr to ₹162 Cr.
🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹111 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 53% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.7% 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.
Cheaper than its peers
It trades 72% 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 debt load needs earnings to hold up
Debt is 3.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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
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 45% a year✓ 60.1% CAGR
Latest reported year was 26.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹111 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 24%✓ 26.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 10 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

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹779 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.3x

Fair

Fairly valued against the generic band

P/B Ratio

2.64x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹12.04

Profitable

Profitable on a per-share basis

ROE

17.2%

Strong

Strong capital efficiency

ROCE

26.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.78x

Moderate

Moderate leverage

Revenue Growth (YoY)

26.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-7.1%

Falling

Profits are shrinking

Dividend Yield

0.22%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹111 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

10.8%

Average

Average margins

Net Margin

4.9%

Average

Average bottom-line conversion

Current Ratio

2.14

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.13

Defensive

Steadier than the market

52W Range Position

85%

Near high

Near its 52-week high

Technical Snapshot

RSI (14)

84.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹177 Cr	₹173 Cr	₹372 Cr	₹725 Cr	+60.1%
EBITDA	₹15 Cr	₹14 Cr	₹27 Cr	₹52 Cr	+51.8%
EBITDA Margin	8.4%	7.9%	7.2%	7.2%	—
PAT (Net Profit)	₹10 Cr	₹9 Cr	₹16 Cr	₹36 Cr	+55.6%
EPS	₹4.31	₹3.96	₹4.92	₹10.78	+35.7%
ROE	14.0%	11.4%	9.8%	17.2%	—
ROCE	21.1%	17.4%	15.6%	26.7%	—
Total Debt	₹33 Cr	₹24 Cr	₹52 Cr	₹162 Cr	+69.6%
Free Cash Flow	-₹1 Cr	₹10 Cr	-₹21 Cr	-₹111 Cr	—

🟢 Revenue has grown at 60.1% a year over 3 years.

🟢 EBITDA has grown at 51.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 8.4% to 7.2% over 3 years (-1.2 pts).

🟢 PAT (Net Profit) has grown at 55.6% a year over 3 years.

🟢 EPS has grown at 35.7% a year over 3 years.

🟢 ROE has risen from 14.0% to 17.2% over 3 years (+3.3 pts).

🟢 ROCE has risen from 21.1% to 26.7% over 3 years (+5.5 pts).

🔴 Total Debt has grown at 69.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹381 Cr

Total Liabilities

₹173 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹107 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.7%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

21 Sept 2026

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

Uday Jewellery Industries Upper Circuit Today: Price, Data and Peers

Univest, 16 Oct

Uday Jewellery Industries Ltd. Share Price rise versus peers

Univest, 12 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.

UDAY JEWELLERY INDUSTRIES Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 26 Sept

Uday Jewellery Industries shares to list on NSE from Sept 25

scanx.trade, 24 Sept

Uday Jewellery Applies for NSE Direct Listing of 3.72 Crore Shares to Boost Liquidity

Sahi, 09 Jul

Uday Jewellery Industries (UDAYJEW) Share Price near 52-week high: what the latest move shows

Univest, 09 Oct

Watch Items

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

StrongGrowth · Profitability

MiddlingBusiness Quality · Financial Health · 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. 2 high-severity red flags sit above this conclusion and should be read first.

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