U.H. Zaveri Limited

Consumer Cyclical — Luxury Goods · BSE

₹6.30+₹0.07 (+1.12%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

U.H. Zaveri Limited engages in the wholesale, retail, and trading of gold and silver jewellery, and related articles in India.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees11

Annual revenue₹43 Cr

How does it make money?

Turns over ₹43 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation. Each of its 11 employees supports ₹3.95 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.95 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 0.2% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +213% while net margin moved -98% 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+213%

Margin effect-98%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.1% is weak
✗ ROE has fallen by 5.6 points over the period

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

29/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

157.5x

3Y Median

60.8x

40 monthly readings · mean 85.4x · range 19.1x–467.5x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 159% above its 3y median of 60.8x. 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 128% above the peer median of 69.2x.

vs. its own history

Expensive

60.8x median over 40 months · +159%

vs. sector peers

Expensive

69.2x median of 4 peers · +128%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

175.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 5.8% to 0.1% — each rupee of shareholder capital earns less than it did.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Profit is decliningFinancial
Net profit is down 93% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 108% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 159% 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 5.8% to 0.1%. 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.

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

1Revenue growth stays above 35% a year✓ 46.3% CAGR
Latest reported year was 16.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -2%✓ 0.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹9 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 0.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 60.8x✗ 157.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

3 / 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
✓ 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 · 3 neutral · 5 weak

Market Cap

₹19 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

157.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.55x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.04

Profitable

Profitable on a per-share basis

ROE

0.1%

Weak

Weak capital efficiency

ROCE

0.2%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

16.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-50.0%

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

-₹9 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.4%

Weak

Thin margins leave little room for error

Net Margin

0.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

136.01

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.55

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

6.6 / 8.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14 Cr	₹20 Cr	₹32 Cr	₹43 Cr	+46.3%
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-23.2%
EBITDA Margin	1.7%	1.7%	0.9%	0.2%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹0 Cr	₹0 Cr	-59.6%
EPS	₹0.57	₹0.44	₹0.2	₹0.02	-67.3%
ROE	5.8%	3.4%	1.1%	0.1%	—
ROCE	1.5%	1.0%	0.8%	0.2%	—
Total Debt	—	₹11 Cr	₹12 Cr	—	—
Free Cash Flow	-₹3 Cr	-₹11 Cr	-₹1 Cr	-₹9 Cr	—

🟢 Revenue has grown at 46.3% a year over 3 years.

🔴 EBITDA has shrunk at 23.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 1.7% to 0.2% over 3 years (-1.5 pts).

🔴 PAT (Net Profit) has shrunk at 59.6% a year over 3 years.

🔴 EPS has shrunk at 67.3% a year over 3 years.

🔴 ROE has fallen from 5.8% to 0.1% over 3 years (-5.6 pts).

🔴 ROCE has fallen from 1.5% to 0.2% over 3 years (-1.3 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹41 Cr

Total Liabilities

₹1 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹8 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.3%

Corporate Actions

Ex-Dividend Date

19 Sept 2018

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

6 general

U. H. Zaveri: Rights Issue Triples Capital, Profit Near Nil

Kalkine India, 12 Oct

U. H. Zaveri Ltd leads losers in 'B' group

Business Standard, 10 Jul

U. H. Zaveri appoints P H Shah and Co. as statutory auditor for FY27-FY31

scanx.trade, 30 Sept

Alacrity Securities Ltd leads losers in 'B' group

Business Standard, 21 Aug

Khandwala Securities Ltd leads losers in 'B' group

Business Standard, 13 Jul

Net Avenue Technologies (NSEI:CBAZAAR) - Stock Analysis

Simply Wall Street, 09 Dec

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8%; Valuation vs its own median of 60.8x · see Key things to watch ↑