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Check Before You Invest : Motisons Jewellers Ltd

BSE: 544053 NSE: MOTISONS ISIN: INE0FRK01020
  |   Sector:  Consumer Durables   |   Industry:  Diamond & Jewellery

Snapshot

Q.1 Which industry/sub-sector does Motisons Jewellers Ltd belong to?
Motisons Jewellers Ltd belongs to the Consumer Durables sector, operating specifically within the Diamond & Jewellery segment.
Q.2 Is Motisons Jewellers Ltd a good quality company?
Motisons Jewellers Ltd is a average quality company, based on a somewhat consistent 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 Motisons Jewellers Ltd undervalued or overvalued?
Motisons 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 5-year
Historic Median
Price to Earnings 19.99 37.04
Price to Book 2.67 4.01
Price to Sales 2.83 3.57
EV to EBITDA 14.19 23.77
Q.4 Is Motisons Jewellers Ltd a good buy now?
Motisons Jewellers Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Motisons Jewellers Ltd?
Motisons Jewellers Ltd revenue growth is 10.9% for FY-2025, which is below its 5-year CAGR of 16.11%, indicating slower growth.

Q.2 Gross Profit margin of Motisons Jewellers Ltd?
Motisons Jewellers Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.3% for FY-2025, which is above its 5-year median of 8.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Motisons Jewellers Ltd?
Motisons Jewellers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.8% for FY-2025, which is in line with its 5-year median of 14.59% indicating stable margins.

Q.4 Net Profit Margin of Motisons Jewellers Ltd?
Motisons Jewellers Ltd Net Profit Margin is 9.34% for FY-2025, is above its 5-year median of 6.06%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 13.3 8.7
Operating Profit Margin (%) 14.8 14.59
Net Profit Margin (%) 9.34 6.06

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Motisons Jewellers Ltd?
Motisons Jewellers Ltd Return on Asset is 8.79%, which is above its 5-year historical median of 6.92%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Motisons Jewellers Ltd?
Motisons Jewellers Ltd Return on capital employed is 14.54% for FY-2025, which is in line with its 5-year historical median of 14.54%. 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 Motisons Jewellers Ltd?
Motisons Jewellers Ltd Return on equity is 12.35% for FY-2025, which is below its 5-year historical median of 13.63%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Motisons Jewellers Ltd?
Motisons Jewellers Ltd Cash conversion cycle is 343 days, above its 5-year historical median of 308 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.94 1.03
ROE (%) 12.35 13.63
ROCE (%) 14.54 14.54
Cash Conversion Cycle 343 days 308 days

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

Q.9 Debt to Equity ratio of Motisons Jewellers Ltd?
Motisons Jewellers Ltd Debt-to-Equity ratio is 0.20, 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 Motisons Jewellers Ltd?
Motisons Jewellers Ltd Debt to cash flow from operations is -3.2, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Motisons Jewellers Ltd?

Q.1 Promoter shareholding and pledge status of Motisons Jewellers Ltd?
Promoters hold 64.86% of the Motisons Jewellers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Motisons Jewellers Ltd vs industry peers?
Motisons Jewellers Ltd revenue CAGR is 16.11%, 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 (%) 10.9 3.8
Gross Profit Growth (%) 29.8 14.9
Operating Profit Growth (%) 7.9 16.2
Net Profit Growth (%) 34.4 13.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.94 1.29
ROE (%) 12.35 6.86
ROCE (%) 14.54 8.31
Cash Conversion Cycle (days) 343.28 132

Valuation & price assessment

Q.1 Stock return of Motisons Jewellers Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -20.47% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -20.5%
Q.2 Valuation ratios of Motisons Jewellers Ltd vs historical?
The current P/E ratio of 19.99 is lower than its historical median of 37.04, 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 19.99 37.04 25.97
Price to Book 2.67 4.01 1.96
Price to Sales 2.83 3.57 1.27
EV to EBITDA 14.19 23.77 16.02

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