Check Before You Invest : Swarnsarita Jewels India Ltd

Snapshot

Q.1 Which industry/sub-sector does Swarnsarita Jewels India Ltd belong to?

Swarnsarita Jewels India Ltd belongs to the Consumer Durables sector, operating specifically within the Diamond & Jewellery segment.

Q.2 Is Swarnsarita Jewels India Ltd a good quality company?

Swarnsarita Jewels India Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Swarnsarita Jewels India Ltd undervalued or overvalued?

Swarnsarita Jewels India Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Swarnsarita Jewels India Ltd a good buy now?

Swarnsarita Jewels India 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 Swarnsarita Jewels India Ltd?

Swarnsarita Jewels India Ltd revenue growth is -1.1% for FY-2025, which is below its 5-year CAGR of 3.81%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Swarnsarita Jewels India Ltd?

Swarnsarita Jewels India Ltd Return on capital employed is 7.99% for FY-2025, which is above its 5-year historical median of 7.04%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Swarnsarita Jewels India Ltd?

Swarnsarita Jewels India Ltd Return on Asset is 3.26%, which is above its 5-year historical median of 2.77%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Swarnsarita Jewels India Ltd?

Swarnsarita Jewels India Ltd Return on equity is 5.73% for FY-2025, which is in line with its 5-year historical median of 5.73%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Swarnsarita Jewels India Ltd?

Swarnsarita Jewels India Ltd Cash conversion cycle is 71 days, in line with its 5-year historical median of 73 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	3.01	3.01
ROE	5.73	5.73
ROCE	7.99	7.04
Cash Conversion Cycle	71 days	73 days

Q.6 Gross Profit margin of Swarnsarita Jewels India Ltd?

Swarnsarita Jewels India Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.7% for FY-2025, which is above its 5-year median of 1.3%, indicating increasing margins.

Q.7 Operating Profit Margin of Swarnsarita Jewels India Ltd?

Swarnsarita Jewels India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.87% for FY-2025, which is above its 5-year median of 1.62% indicating increasing margins.

Q.8 Net Profit Margin of Swarnsarita Jewels India Ltd?

Swarnsarita Jewels India Ltd Net Profit Margin is 1.08% for FY-2025, is above with its 5-year median of 0.96%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	1.7	1.3
Operating Profit Margin	1.87	1.62
Net Profit Margin	1.08	0.96

Q.9 Debt to Equity ratio of Swarnsarita Jewels India Ltd?

Swarnsarita Jewels India Ltd Debt-to-Equity ratio is 0.65, which is above with the industry average of 0.58, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Swarnsarita Jewels India Ltd?

Swarnsarita Jewels India Ltd Debt to cash flow from operations is 246.89, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Swarnsarita Jewels India Ltd?

Promoters hold 52.03% of the Swarnsarita Jewels India Ltd, with 57.66% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Swarnsarita Jewels India Ltd vs industry peers?

Swarnsarita Jewels India Ltd revenue CAGR is 3.81%, compared to the industry median CAGR of 11.19%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-1.1	11.2
Gross Profit Growth	58.7	14.9
Operating Profit Growth	9.4	17.5
Net Profit Growth	43.2	13.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	3.01	1.44
ROE	5.73	7.96
ROCE	7.99	8.31
Cash Conversion Cycle (days)	71.1	132

Valuation & price assessment

Q.1 Stock return of Swarnsarita Jewels India Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 4.6% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	4.6%	24.2%	22.6%	9.3%

Q.3 Valuation ratios of Swarnsarita Jewels India 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	7.74	6.95	27.79
Price to Book	0.49	0.48	1.96
Price to Sales	0.1	0.08	1.27
EV to EBITDA	6.97	7.54	16.05

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