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Check Before You Invest : Grover Jewells Ltd

BSE: 0 NSE: GJL ISIN: INE1TY801010
  |   Sector:  Consumer Durables   |   Industry:  Diamond & Jewellery

Snapshot

Q.1 Which industry/sub-sector does Grover Jewells Ltd belong to?
Grover Jewells Ltd belongs to the Consumer Durables sector, operating specifically within the Diamond & Jewellery segment.
Q.2 Is Grover Jewells Ltd a good quality company?
Grover Jewells 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 Grover Jewells Ltd undervalued or overvalued?
Grover Jewells 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 3-year
Historic Median
Price to Earnings 25.47 30.78
Price to Book 6.81 8.12
Price to Sales 0.42 0.51
EV to EBITDA 17.56 21.11
Q.4 Is Grover Jewells Ltd a good buy now?
Grover Jewells 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 Grover Jewells Ltd?
Grover Jewells Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.3% for FY-2025, which is above its 3-year median of 1.7%, indicating increasing margins.

Q.2 Operating Profit Margin of Grover Jewells Ltd?
Grover Jewells Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.45% for FY-2025, which is above its 3-year median of 1.82% indicating increasing margins.

Q.3 Net Profit Margin of Grover Jewells Ltd?
Grover Jewells Ltd Net Profit Margin is 1.65% for FY-2025, is above its 3-year median of 1.08%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 2.3 1.7
Operating Profit Margin (%) 2.45 1.82
Net Profit Margin (%) 1.65 1.08

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Grover Jewells Ltd?
Grover Jewells Ltd Return on Asset is 35.06%, which is above its 3-year historical median of 23.16%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Grover Jewells Ltd?
Grover Jewells Ltd Return on capital employed is 51.94% for FY-2025, which is above its 3-year historical median of 35.82%. 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 Grover Jewells Ltd?
Grover Jewells Ltd Return on equity is 59.17% for FY-2025, which is above its 3-year historical median of 43%, 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 Grover Jewells Ltd?
Grover Jewells Ltd Debt-to-Equity ratio is 0.56, 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 Grover Jewells Ltd?
Grover Jewells Ltd Debt to cash flow from operations is 39.68, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Grover Jewells Ltd?

Q.1 Promoter shareholding and pledge status of Grover Jewells Ltd?
Promoters hold 73.50% of the Grover Jewells Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Grover Jewells Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Grover Jewells Ltd vs industry peers?
Grover Jewells Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 13.71%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 13.7
Gross Profit Growth (%) 175 24.8
Operating Profit Growth (%) 120 28.1
Net Profit Growth (%) 166.7 24.2
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 21.19 1.54
ROE (%) 59.17 8.89
ROCE (%) 51.94 10.71
Cash Conversion Cycle (days) 10.34 134

Valuation & price assessment

Q.1 Stock return of Grover Jewells 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 Grover Jewells Ltd vs historical?
The current P/E ratio of 25.47 is lower than its historical median of 30.78, 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 25.47 30.78 28.21
Price to Book 6.81 8.12 1.95
Price to Sales 0.42 0.51 1.40
EV to EBITDA 17.56 21.11 17.18

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