Vega Jewellers Limited

Consumer Cyclical — Luxury Goods · BSE

₹61.95₹0.00 (0.00%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, 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, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vega Jewellers Limited engages in the business of design and retail of fine jewellery. It provides gold, diamond, platinum, and gemstone collections. The company also offers diamond, polki, kundan, temple kundan, and antique, as well as provides bridal jewellery.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees506

Annual revenue₹597 Cr

How does it make money?

Turns over ₹597 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 506 employees supports ₹1.18 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.18 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 14.2% 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%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROCE of 14.2% is adequate but not distinctive
✗ EBITDA margin of 7.7% is thin — little cushion if costs rise
✗ Net margin of 5.0% is slim

Quality vs. Valuation

Company Quality

49/ 100

Average

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

Valuation

80/ 100

Cheap

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

5.6x

2Y Median

31.0x

28 monthly readings · mean 36.6x · range 1.0x–80.5x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 82% below its 2y median of 31.0x. 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 92% below the peer median of 69.2x.

vs. its own history

Cheap

31.0x median over 28 months · -82%

vs. sector peers

Cheap

69.2x median of 4 peers · -92%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

12.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Return on equity is rising
ROE has improved from -17.2% to 13.8%.

🔴 What Needs Attention0

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

Red Flags

4 items require attention · 1 high · 3 watch

🔴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.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 195.3x to 4.9x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹373 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 2020% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 82% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 92% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 6.1x 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.

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

1EBITDA margin holds above 6%✓ 7.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 6.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹373 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 11%✓ 14.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 4.9x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

6 / 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

4 good · 6 neutral · 1 weak

Market Cap

₹315 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.6x

Cheap

Cheap against the generic band

P/B Ratio

1.91x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹10.99

Profitable

Profitable on a per-share basis

ROE

13.8%

Moderate

Moderate capital efficiency

ROCE

14.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.35x

Moderate

Moderate leverage

Revenue Growth (YoY)

80.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

316.8%

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

-₹373 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

13.4%

Average

Average margins

Net Margin

5.0%

Average

Average bottom-line conversion

Current Ratio

1.53

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

88%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

63.6 / 62.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹10 Cr	₹597 Cr	—
EBITDA	-₹0 Cr	₹0 Cr	₹0 Cr	₹46 Cr	—
EBITDA Margin	—	—	2.3%	7.7%	—
PAT (Net Profit)	-₹0 Cr	₹0 Cr	₹0 Cr	₹23 Cr	—
EPS	₹-1.59	₹0.67	₹0.78	₹4.47	—
ROE	-17.2%	6.8%	1.2%	13.8%	—
ROCE	—	9.5%	1.5%	14.2%	—
Total Debt	—	₹1 Cr	—	₹278 Cr	—
Free Cash Flow	-₹0 Cr	-₹0 Cr	₹0 Cr	-₹373 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹46 Cr.

🟢 EBITDA Margin has risen from 2.3% to 7.7% over 3 years (+5.4 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹23 Cr.

🟢 EPS has turned positive, from ₹-1.59 to ₹4.47.

🟢 ROE has risen from -17.2% to 13.8% over 3 years (+31.0 pts).

🟢 ROCE has risen from 9.5% to 14.2% over 3 years (+4.8 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹680 Cr

Total Liabilities

₹473 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹350 Cr

Capex

-₹23 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.6%

Corporate Actions

Ex-Dividend Date

31 Jul 2014

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

2 positive4 general

Vega Jewellers (BSE:512026) - Stock Analysis

Simply Wall Street, 05 Oct

Vega Jewellers Share Price Alert! 4:1 Bonus Issue Confirmed, Allotment By May 09; Buy The Stock On Monday?

Goodreturns, 16 MarCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Compare with PH TRADING

Equitymaster, 16 Oct

Vega Jewellers Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Vega Jewellers shareholders approve all 8 AGM resolutions with 100% support

scanx.trade, 29 Sept

Vega Jewellers standalone net profit rises 253.90% in the June 2026 quarter

Business Standard, 01 AugResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongValuation

MiddlingFinancial Health · Growth · Profitability

WeakBusiness Quality · 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. 1 high-severity red flag sits 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 ↑