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Check Before You Invest : Uday Jewellery Industries Ltd

BSE: 539518 NSE: ISIN: INE551B01012
  |   Sector:  Consumer Durables   |   Industry:  Diamond & Jewellery

Snapshot

Q.1 Which industry/sub-sector does Uday Jewellery Industries Ltd belong to?
Uday Jewellery Industries Ltd belongs to the Consumer Durables sector, operating specifically within the Diamond & Jewellery segment.
Q.2 Is Uday Jewellery Industries Ltd a good quality company?
Uday Jewellery Industries 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 Uday Jewellery Industries Ltd undervalued or overvalued?
Uday Jewellery Industries Ltd appears Undervalued, as its key valuation ratios are lower 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 27.46 34.47
Price to Book 3.45 3.98
Price to Sales 1.01 1.68
EV to EBITDA 18.26 23.56
Q.4 Is Uday Jewellery Industries Ltd a good buy now?
Uday Jewellery Industries 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 Uday Jewellery Industries Ltd?
Uday Jewellery Industries Ltd revenue growth is 65.8% for FY-2025, which is above its 5-year CAGR of 25.64%, indicating faster growth.

Q.2 Gross Profit margin of Uday Jewellery Industries Ltd?
Uday Jewellery Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.4% for FY-2025, which is below its 5-year median of 7.1%, indicating decreasing margins.

Q.3 Operating Profit Margin of Uday Jewellery Industries Ltd?
Uday Jewellery Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.68% for FY-2025, which is below its 5-year median of 7.42% indicating decreasing margins.

Q.4 Net Profit Margin of Uday Jewellery Industries Ltd?
Uday Jewellery Industries Ltd Net Profit Margin is 3.78% for FY-2025, is below its 5-year median of 5.03%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 5.4 7.1
Operating Profit Margin (%) 5.68 7.42
Net Profit Margin (%) 3.78 5.03

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Uday Jewellery Industries Ltd?
Uday Jewellery Industries Ltd Return on Asset is 8.94%, which is in line with its 5-year historical median of 8.94%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Uday Jewellery Industries Ltd?
Uday Jewellery Industries Ltd Return on capital employed is 14.14% for FY-2025, which is in line with its 5-year historical median of 13.67%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Uday Jewellery Industries Ltd?
Uday Jewellery Industries Ltd Return on equity is 12.3% for FY-2025, which is in line with its 5-year historical median of 12.17%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Uday Jewellery Industries Ltd?
Uday Jewellery Industries Ltd Cash conversion cycle is 135 days, below its 5-year historical median of 192 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 2.36 1.61
ROE (%) 12.3 12.17
ROCE (%) 14.14 13.67
Cash Conversion Cycle 135 days 192 days

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

Q.9 Debt to Equity ratio of Uday Jewellery Industries Ltd?
Uday Jewellery Industries Ltd Debt-to-Equity ratio is 0.24, which is lower the industry average of 0.57, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Uday Jewellery Industries Ltd?
Uday Jewellery Industries Ltd Debt to cash flow from operations is -1.38, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Uday Jewellery Industries Ltd?

Q.1 Promoter shareholding and pledge status of Uday Jewellery Industries Ltd?
Promoters hold 74.93% of the Uday Jewellery Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Uday Jewellery Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Uday Jewellery Industries Ltd vs industry peers?
Uday Jewellery Industries Ltd revenue CAGR is 25.64%, 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 (%) 65.8 3.8
Gross Profit Growth (%) 25 14.9
Operating Profit Growth (%) 23.1 16.2
Net Profit Growth (%) 22.2 13.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.36 1.29
ROE (%) 12.3 6.86
ROCE (%) 14.14 8.31
Cash Conversion Cycle (days) 134.75 132

Valuation & price assessment

Q.1 Stock return of Uday Jewellery Industries 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.
9Y 5Y 3Y 1Y
Share Price
CAGR
29.9% 8% 10.5% 8.2%
Q.2 Valuation ratios of Uday Jewellery Industries Ltd vs historical?
The current P/E ratio of 27.46 is lower than its historical median of 34.47, indicating that the stock is trading below 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 27.46 34.47 25.97
Price to Book 3.45 3.98 1.96
Price to Sales 1.01 1.68 1.27
EV to EBITDA 18.26 23.56 16.02

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