Viram Suvarn Limited

Consumer Cyclical — Luxury Goods · BSE

₹9.09+₹0.01 (+0.11%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:05 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 Viram Suvarn Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Viram Suvarn Limited manufactures and sells gold, diamond, and jewellery ornaments primarily in India. It offers rings, bracelet, necklace, ear chain, earring, pendants, chains, magalsuta, zuda, toe ring, anklet, and bangle.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees2

Annual revenue₹25 Cr

How does it make money?

Turns over ₹25 Cr a year. Of every ₹100 of sales, about ₹31 reaches shareholders as profit, with ₹41 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹12.30 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin40.8%

Net margin30.8%

Revenue / employee₹12.30 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?Some evidence

ROCE of 15.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.6%

ROE11.9%

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +32% while net margin moved +222% 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+32%

Margin effect+222%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.32 — 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

74/ 100

Good

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

Valuation

66/ 100

Fair

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

10.4x

3Y Median

8.1x

40 monthly readings · mean 11.9x · range 5.5x–26.8x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 29% above its 3y median of 8.1x. 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 85% below the peer median of 69.2x.

vs. its own history

Expensive

8.1x median over 40 months · +29%

vs. sector peers

Cheap

69.2x median of 4 peers · -85%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

10.4x

P/B

1.66x

EV/EBITDA

10.3x

PEG

0.17

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 12.0% to 40.8% over 3 years.
Return on capital is rising
ROCE has improved from 11.8% to 15.6%.
Very low debt
Debt/Equity of 0.01x leaves the balance sheet with plenty of headroom.
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.
Inventory building faster than sales
Inventory is up 261% against revenue growth of 32% — stock may not be moving.
Valuation above its historical average
At 10.4x the stock trades 29% above its own median of 8.1x.

Red Flags

4 items require attention · 2 high · 2 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.
🔴Inventory building faster than salesFinancial
Inventory up 261% against revenue up 32% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹22 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 47% 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 12.0% to 40.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 85% 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 price already assumes success
The stock trades 29% 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.
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

1EBITDA margin holds above 39%✓ 40.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹22 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 7% a year✓ 9.6% CAGR
Latest reported year was -17.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 15.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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 · 4 neutral · 3 weak

Market Cap

₹103 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.4x

Cheap

Cheap against the generic band

P/B Ratio

1.66x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.87

Profitable

Profitable on a per-share basis

ROE

11.9%

Moderate

Moderate capital efficiency

ROCE

15.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.01x

Low

Conservative leverage

Revenue Growth (YoY)

-17.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-31.6%

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

-₹22 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹9.09

Operating Margin

-33.9%

Weak

Thin margins leave little room for error

Net Margin

32.1%

Good

Strong bottom-line conversion

Current Ratio

25.10

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.32

Defensive

Steadier than the market

52W Range Position

37%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

9.5 / 9.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹19 Cr	₹19 Cr	₹26 Cr	₹25 Cr	+9.6%
EBITDA	₹2 Cr	₹3 Cr	₹5 Cr	₹10 Cr	+64.9%
EBITDA Margin	12.0%	16.6%	17.3%	40.8%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹3 Cr	₹8 Cr	+61.8%
EPS	₹1.15	₹1.59	₹0.45	₹0.67	-16.5%
ROE	9.1%	11.2%	13.5%	11.9%	—
ROCE	11.8%	14.9%	17.8%	15.6%	—
Free Cash Flow	₹1 Cr	-₹0 Cr	₹2 Cr	-₹22 Cr	—

🟢 Revenue has grown at 9.6% a year over 3 years.

🟢 EBITDA has grown at 64.9% a year over 3 years.

🟢 EBITDA Margin has risen from 12.0% to 40.8% over 3 years (+28.8 pts).

🟢 PAT (Net Profit) has grown at 61.8% a year over 3 years.

🔴 EPS has shrunk at 16.5% a year over 3 years.

🟢 ROE has risen from 9.1% to 11.9% over 3 years (+2.8 pts).

🟢 ROCE has risen from 11.8% to 15.6% over 3 years (+3.8 pts).

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹22 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹66 Cr

Total Liabilities

₹2 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹22 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.7%

Corporate Actions

Ex-Dividend Date

21 Feb 2025

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

Viram Suvarn - 9 penny stocks surge up to 430% in 3 months; 2 turn multibaggers. Do you own any?

The Economic Times, 22 Mar

Viram Suvarn (BSE:540252) - Stock Analysis

Simply Wall Street, 12 Dec

Viram Suvarn Q1FY27 profit rises 1.9%, led by other income

scanx.trade, 07 AugResults

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

Viram Suvarn Rights Issue January 2026 Date, Price, Allotment, Ratio

IPO Watch, 06 Jan

Viram Suvarn Limited Receives Research Report from A&Y Market Research

scanx.trade, 25 Jan

Viram Suvarn FY26 Results: Net profit up 122% on cost cuts

scanx.trade, 04 SeptResults

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

Watch Items

Revenue growth is negative (-17.7%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong17.1/20

🟢Financial HealthStrong14.5/20

🟢GrowthStrong13.3/20

🟢ProfitabilityStrong10.9/15

🟡ValuationFair8.4/15

🔴RiskHigh4/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 39%40.8%
✗Free cash flow remains positive-₹22 Cr
✓Revenue growth stays above 7% a year9.6% CAGR
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 13%15.6%