Check Before You Invest : Golkunda Diamonds & Jewellery Ltd

Snapshot

Q.1 Which industry/sub-sector does Golkunda Diamonds & Jewellery Ltd belong to?

Golkunda Diamonds & Jewellery Ltd belongs to the Consumer Durables sector, operating specifically within the Diamond & Jewellery segment.

Q.2 Is Golkunda Diamonds & Jewellery Ltd a good quality company?

Golkunda Diamonds & Jewellery Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Golkunda Diamonds & Jewellery Ltd undervalued or overvalued?

Golkunda Diamonds & Jewellery Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Golkunda Diamonds & Jewellery Ltd a good buy now?

Golkunda Diamonds & Jewellery 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

Q.1 Revenue growth of Golkunda Diamonds & Jewellery Ltd?

Golkunda Diamonds & Jewellery Ltd revenue growth is 9.5% for FY-2025, which is below its 5-year CAGR of 13.72%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Golkunda Diamonds & Jewellery Ltd?

Golkunda Diamonds & Jewellery Ltd Return on capital employed is 19.89% for FY-2025, which is above its 5-year historical median of 17.78%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Golkunda Diamonds & Jewellery Ltd?

Golkunda Diamonds & Jewellery Ltd Return on Asset is 9.77%, which is above its 5-year historical median of 8.76%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Golkunda Diamonds & Jewellery Ltd?

Golkunda Diamonds & Jewellery Ltd Return on equity is 19.78% for FY-2025, which is in line with its 5-year historical median of 19.78%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Golkunda Diamonds & Jewellery Ltd?

Golkunda Diamonds & Jewellery Ltd Cash conversion cycle is 110 days, above its 5-year historical median of 101 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	2.09	2.3
ROE	19.78	19.78
ROCE	19.89	17.78
Cash Conversion Cycle	110 days	101 days

Q.6 Gross Profit margin of Golkunda Diamonds & Jewellery Ltd?

Golkunda Diamonds & Jewellery Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.9% for FY-2025, which is above its 5-year median of 5.6%, indicating increasing margins.

Q.7 Operating Profit Margin of Golkunda Diamonds & Jewellery Ltd?

Golkunda Diamonds & Jewellery Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.82% for FY-2025, which is above its 5-year median of 6.56% indicating increasing margins.

Q.8 Net Profit Margin of Golkunda Diamonds & Jewellery Ltd?

Golkunda Diamonds & Jewellery Ltd Net Profit Margin is 4.68% for FY-2025, is above with its 5-year median of 4.04%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	6.9	5.6
Operating Profit Margin	7.82	6.56
Net Profit Margin	4.68	4.04

Q.9 Debt to Equity ratio of Golkunda Diamonds & Jewellery Ltd?

Golkunda Diamonds & Jewellery Ltd Debt-to-Equity ratio is 0.55, which is lower with the industry average of 0.58, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Golkunda Diamonds & Jewellery Ltd?

Golkunda Diamonds & Jewellery Ltd Debt to cash flow from operations is 4.26, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Golkunda Diamonds & Jewellery Ltd?

Promoters hold 72.81% of the Golkunda Diamonds & Jewellery Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Golkunda Diamonds & Jewellery Ltd vs industry peers?

Golkunda Diamonds & Jewellery Ltd revenue CAGR is 13.72%, compared to the industry median CAGR of 11.19%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	9.5	11.2
Gross Profit Growth	21.4	14.9
Operating Profit Growth	25	17.5
Net Profit Growth	20	13.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	2.09	1.44
ROE	19.78	7.96
ROCE	19.89	8.31
Cash Conversion Cycle (days)	109.65	132

Valuation & price assessment

Q.1 Stock return of Golkunda Diamonds & Jewellery Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 29.9% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	29.9%	71.5%	35.6%	41.1%

Q.3 Valuation ratios of Golkunda Diamonds & Jewellery Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	15.47	10.79	27.79
Price to Book	2.56	1.98	1.96
Price to Sales	0.68	0.37	1.27
EV to EBITDA	10.19	7.94	16.05

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