Zodiac-JRD-MKJ Limited

Consumer Cyclical — Luxury Goods · BSE

₹31.55+₹1.29 (+4.26%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Zodiac-JRD-MKJ Limited engages in the sale and trading of gold and diamond jewellery, cut and polished diamonds, precious stones, and semi-precious stones in India. The company was incorporated in 1987 and is based in Mumbai, India.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees10

Annual revenue₹45 Cr

How does it make money?

Turns over ₹45 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 10 employees supports ₹4.53 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.53 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 6.0% 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 +200% while net margin moved +31% 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+200%

Margin effect+31%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.07 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ 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

58/ 100

Average

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

Valuation

88/ 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

6.9x

3Y Median

49.6x

40 monthly readings · mean 47.0x · range 7.7x–75.6x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 86% below its 3y median of 49.6x. 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 90% below the peer median of 69.2x.

vs. its own history

Cheap

49.6x median over 40 months · -86%

vs. sector peers

Cheap

69.2x median of 4 peers · -90%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.1x

PEG

0.12

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 5.3% to 17.6% over 3 years.
Return on capital is rising
ROCE has improved from 1.6% to 6.0%.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 6.19x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 63% 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 5.3% to 17.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 86% 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 90% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 6.19x. Interest is payable whether or not the business has a good year.
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 33% a year✓ 44.2% CAGR
Latest reported year was 1.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 17.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹29 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 6.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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 · 3 neutral · 4 weak

Market Cap

₹35 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.9x

Cheap

Cheap against the generic band

P/B Ratio

0.17x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.54

Profitable

Profitable on a per-share basis

ROE

4.1%

Weak

Weak capital efficiency

ROCE

6.0%

Weak

Low return on total capital employed

Debt/Equity

6.19x

High

High leverage

Revenue Growth (YoY)

1.3%

Modest

Modest growth

Profit Growth (YoY)

138.3%

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

-₹29 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.3%

Average

Average margins

Net Margin

9.3%

Average

Average bottom-line conversion

Current Ratio

2.55

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.07

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

32.7 / 35.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹15 Cr	₹11 Cr	₹23 Cr	₹45 Cr	+44.2%
EBITDA	₹1 Cr	-₹3 Cr	₹1 Cr	₹8 Cr	+115.5%
EBITDA Margin	5.3%	-30.7%	4.4%	17.6%	—
PAT (Net Profit)	₹1 Cr	-₹1 Cr	₹0 Cr	₹4 Cr	+57.7%
EPS	₹1.46	₹-2.03	₹0.64	₹4.06	+40.6%
ROE	1.4%	-2.0%	0.6%	4.1%	—
ROCE	1.6%	-3.0%	1.4%	6.0%	—
Total Debt	—	₹0 Cr	₹0 Cr	₹6 Cr	—
Free Cash Flow	₹1 Cr	-₹9 Cr	-₹1 Cr	-₹29 Cr	—

🟢 Revenue has grown at 44.2% a year over 3 years.

🟢 EBITDA has grown at 115.5% a year over 3 years.

🟢 EBITDA Margin has risen from 5.3% to 17.6% over 3 years (+12.4 pts).

🟢 PAT (Net Profit) has grown at 57.7% a year over 3 years.

🟢 EPS has grown at 40.6% a year over 3 years.

🟢 ROE has risen from 1.4% to 4.1% over 3 years (+2.6 pts).

🟢 ROCE has risen from 1.6% to 6.0% over 3 years (+4.4 pts).

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹29 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹143 Cr

Total Liabilities

₹46 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹31 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

55.7%

Corporate Actions

Ex-Dividend Date

10 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

1 positive5 general

Zodiac JRD-MKJ passes ESOP plan and capital hike with 99% votes

scanx.trade, 24 Sept

Gold Bullion Trading Penny Stocks India 2027: 5 Picks

Univest, 17 Sept

Zodiac-JRD-MKJ consolidated net profit rises 137.14% in the June 2026 quarter

Business Standard, 13 AugResults

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

Zodiac JRD-MKJ approves Draft Letter of Offer for ₹400 crore rights issue

scanx.trade, 06 Aug

Zodiac-jrd-mkj Rights Issue 2025 Date, Price, Allotment, Ratio

IPO Watch, 19 May

Zodiac-JRD-MKJ (BSE:512587) - Stock Analysis

Simply Wall Street, 03 Dec

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health

WeakProfitability · 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. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑