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Check Before You Invest : Bluestone Jewellery And Lifestyle Ltd

BSE: 544484 NSE: BLUESTONE ISIN: INE304W01038
  |   Sector:  Consumer Durables   |   Industry:  Diamond & Jewellery

Snapshot

Q.1 Which industry/sub-sector does Bluestone Jewellery And Lifestyle Ltd belong to?
Bluestone Jewellery And Lifestyle Ltd belongs to the Consumer Durables sector, operating specifically within the Diamond & Jewellery segment.
Q.2 Is Bluestone Jewellery And Lifestyle Ltd a good quality company?
Bluestone Jewellery And Lifestyle Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Bluestone Jewellery And Lifestyle Ltd undervalued or overvalued?
Bluestone Jewellery And Lifestyle Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 270.94 -
Price to Book 3.87 -
Price to Sales 2.89 -
EV to EBITDA 16.43 -
Q.4 Is Bluestone Jewellery And Lifestyle Ltd a good buy now?
Bluestone Jewellery And Lifestyle Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Bluestone Jewellery And Lifestyle Ltd?
Bluestone Jewellery And Lifestyle Ltd revenue growth is 39.8% for FY-2025, which is below its 5-year CAGR of 47.33%, indicating slower growth.

Q.2 Gross Profit margin of Bluestone Jewellery And Lifestyle Ltd?
Bluestone Jewellery And Lifestyle Ltd Gross profit margin which is the profit after deduction of direct costs, is -4.1% for FY-2025, which is above its 5-year median of -7.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Bluestone Jewellery And Lifestyle Ltd?
Bluestone Jewellery And Lifestyle Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.42% for FY-2025, which is above its 5-year median of -6.77% indicating increasing margins.

Q.4 Net Profit Margin of Bluestone Jewellery And Lifestyle Ltd?
Bluestone Jewellery And Lifestyle Ltd Net Profit Margin is -12.38% for FY-2025, is in line with its 5-year median of -12.87%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -4.1 -7.5
Operating Profit Margin (%) 4.42 -6.77
Net Profit Margin (%) -12.38 -12.87

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Bluestone Jewellery And Lifestyle Ltd?
Bluestone Jewellery And Lifestyle Ltd Return on Asset is -7.32%, which is above its 5-year historical median of -18.41%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Bluestone Jewellery And Lifestyle Ltd?
Bluestone Jewellery And Lifestyle Ltd Return on capital employed is -0.68% for FY-2025, which is above its 5-year historical median of -42.3%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Bluestone Jewellery And Lifestyle Ltd?
Bluestone Jewellery And Lifestyle Ltd Return on equity is -40.21% for FY-2025, which is above its 5-year historical median of -164.23%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Bluestone Jewellery And Lifestyle Ltd?
Bluestone Jewellery And Lifestyle Ltd Cash conversion cycle is 244 days, above its 5-year historical median of 107 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.59 0.85
ROE (%) -40.21 -164.23
ROCE (%) -0.68 -42.3
Cash Conversion Cycle 244 days 107 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Bluestone Jewellery And Lifestyle Ltd?
Bluestone Jewellery And Lifestyle Ltd Debt-to-Equity ratio is 1.35, which is above the industry average of 0.57, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Bluestone Jewellery And Lifestyle Ltd?
Bluestone Jewellery And Lifestyle Ltd Debt to cash flow from operations is -1.68, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Bluestone Jewellery And Lifestyle Ltd?

Q.1 Promoter shareholding and pledge status of Bluestone Jewellery And Lifestyle Ltd?
Promoters hold 16.27% of the Bluestone Jewellery And Lifestyle Ltd, with 37.21% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Bluestone Jewellery And Lifestyle Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Bluestone Jewellery And Lifestyle Ltd vs industry peers?
Bluestone Jewellery And Lifestyle Ltd revenue CAGR is 47.33%, compared to the industry median CAGR of 3.81%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 39.8 3.8
Gross Profit Growth (%) 0 14.9
Operating Profit Growth (%) 43.4 16.2
Net Profit Growth (%) 0 13.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.59 1.29
ROE (%) -40.21 6.86
ROCE (%) -0.68 8.31
Cash Conversion Cycle (days) 243.66 132

Valuation & price assessment

Q.1 Stock return of Bluestone Jewellery And Lifestyle Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Bluestone Jewellery And Lifestyle Ltd vs historical?
The current P/E ratio of 270.94 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 270.94 - 25.97
Price to Book 3.87 - 1.96
Price to Sales 2.89 - 1.27
EV to EBITDA 16.43 - 16.02

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