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Check Before You Invest : SMR Jewels Ltd

BSE: 544774 NSE: ISIN: INE11XK01017
  |   Sector:  Consumer Durables   |   Industry:  Diamond & Jewellery

Snapshot

Q.1 Which industry/sub-sector does SMR Jewels Ltd belong to?
SMR Jewels Ltd belongs to the Consumer Durables sector, operating specifically within the Diamond & Jewellery segment.
Q.2 Is SMR Jewels Ltd a good quality company?
SMR Jewels 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 SMR Jewels Ltd undervalued or overvalued?
SMR Jewels 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 3-year
Historic Median
Price to Earnings 6.71 7.18
Price to Book 1.65 1.77
Price to Sales 0.38 0.41
EV to EBITDA 4.59 4.92
Q.4 Is SMR Jewels Ltd a good buy now?
SMR Jewels 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.

Q.1 Gross Profit margin of SMR Jewels Ltd?
SMR Jewels Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.4% for FY-2025, which is above its 3-year median of 4.3%, indicating increasing margins.

Q.2 Operating Profit Margin of SMR Jewels Ltd?
SMR Jewels Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.76% for FY-2025, which is above its 3-year median of 4.93% indicating increasing margins.

Q.3 Net Profit Margin of SMR Jewels Ltd?
SMR Jewels Ltd Net Profit Margin is 3.96% for FY-2025, is above its 3-year median of 3.09%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 5.4 4.3
Operating Profit Margin (%) 5.76 4.93
Net Profit Margin (%) 3.96 3.09

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of SMR Jewels Ltd?
SMR Jewels Ltd Return on Asset is 35.66%, which is above its 3-year historical median of 21.15%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of SMR Jewels Ltd?
SMR Jewels Ltd Return on capital employed is 66.82% for FY-2025, which is above its 3-year historical median of 61.36%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of SMR Jewels Ltd?
SMR Jewels Ltd Return on equity is 71.76% for FY-2025, which is below its 3-year historical median of 87.74%, indicating the business is making worse use of its shareholders capital.

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

Q.7 Debt to Equity ratio of SMR Jewels Ltd?
SMR Jewels Ltd Debt-to-Equity ratio is 0.35, which is lower the industry average of 0.57, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of SMR Jewels Ltd?
SMR Jewels Ltd Debt to cash flow from operations is 6.83, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of SMR Jewels Ltd?

Q.1 Promoter shareholding and pledge status of SMR Jewels Ltd?
Promoters hold 65.74% of the SMR Jewels Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does SMR Jewels Ltd performance compare with that of its Peers?

Q.1 Revenue growth of SMR Jewels Ltd vs industry peers?
SMR Jewels Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 13.12%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 13.1
Gross Profit Growth (%) 180 26
Operating Profit Growth (%) 150 30.2
Net Profit Growth (%) 150 28.3
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 9.02 1.55
ROE (%) 71.76 9.5
ROCE (%) 66.82 11.33
Cash Conversion Cycle (days) 29.62 133

Valuation & price assessment

Q.1 Stock return of SMR Jewels 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 SMR Jewels Ltd vs historical?
The current P/E ratio of 6.71 is lower than its historical median of 7.18, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 6.71 7.18 28.21
Price to Book 1.65 1.77 1.95
Price to Sales 0.38 0.41 1.40
EV to EBITDA 4.59 4.92 17.18

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