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Check Before You Invest : Divine Hira Jewellers Ltd

BSE: 0 NSE: DIVINEHIRA ISIN: INE0NA501011
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Divine Hira Jewellers Ltd belong to?
Divine Hira Jewellers Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Divine Hira Jewellers Ltd a good quality company?
Divine Hira Jewellers 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 Divine Hira Jewellers Ltd undervalued or overvalued?
Divine Hira Jewellers Ltd appears Fair, as its key valuation ratios are in line with 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 59.46 44.70
Price to Book 8.38 4.48
Price to Sales 0.48 0.48
EV to EBITDA 37.37 24.81
Q.4 Is Divine Hira Jewellers Ltd a good buy now?
Divine Hira Jewellers Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Divine Hira Jewellers Ltd?
Divine Hira Jewellers Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.1% for FY-2025, which is above its 3-year median of 1.1%, indicating increasing margins.

Q.2 Operating Profit Margin of Divine Hira Jewellers Ltd?
Divine Hira Jewellers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.47% for FY-2025, which is above its 3-year median of 1.81% indicating increasing margins.

Q.3 Net Profit Margin of Divine Hira Jewellers Ltd?
Divine Hira Jewellers Ltd Net Profit Margin is 1.55% for FY-2025, is above its 3-year median of 0.81%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 2.1 1.1
Operating Profit Margin (%) 2.47 1.81
Net Profit Margin (%) 1.55 0.81

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Divine Hira Jewellers Ltd?
Divine Hira Jewellers Ltd Return on Asset is 11.76%, which is above its 3-year historical median of 5.68%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Divine Hira Jewellers Ltd?
Divine Hira Jewellers Ltd Return on capital employed is 19.69% for FY-2025, which is above its 3-year historical median of 13.54%. 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 Divine Hira Jewellers Ltd?
Divine Hira Jewellers Ltd Return on equity is 20.88% for FY-2025, which is above its 3-year historical median of 16.37%, indicating the business is making better 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 Divine Hira Jewellers Ltd?
Divine Hira Jewellers Ltd Debt-to-Equity ratio is 0.44, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Divine Hira Jewellers Ltd?
Divine Hira Jewellers Ltd Debt to cash flow from operations is 25.58, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Divine Hira Jewellers Ltd?

Q.1 Promoter shareholding and pledge status of Divine Hira Jewellers Ltd?
Promoters hold 72.70% of the Divine Hira Jewellers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Divine Hira Jewellers Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Divine Hira Jewellers Ltd vs industry peers?
Divine Hira Jewellers Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 4.99%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 5
Gross Profit Growth (%) 250 17.6
Operating Profit Growth (%) 200 21.1
Net Profit Growth (%) 500 19
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 7.6 0.66
ROE (%) 20.88 2.9
ROCE (%) 19.69 4.31
Cash Conversion Cycle (days) 30.04 49

Valuation & price assessment

Q.1 Stock return of Divine Hira Jewellers Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 633.79% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 633.8%
Q.2 Valuation ratios of Divine Hira Jewellers Ltd vs historical?
The current P/E ratio of 59.46 is higher than its historical median of 44.70, indicating that the stock is trading above 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 59.46 44.70 35.02
Price to Book 8.38 4.48 1.68
Price to Sales 0.48 0.48 2.16
EV to EBITDA 37.37 24.81 15.51

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