Mini Diamonds(I) (523373)
Fast GrowerScore breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹86.72 |
| Market Cap | ₹204.39 Cr |
| P/E Ratio | 49.49 |
| ROCE | 16.19% |
| ROE | 8.17% |
| Dividend Yield | 0% |
| Profit Growth | 44.89% |
| Debt/Equity | — |
| Sales Growth | 44.08% |
| 52-Week Range | ₹14.49 — ₹86.72 |
| Sector | Consumer Durables |
| Book Value | ₹6.21 |
Strengths
- Sales growth of 44.08% and profit growth of 44.89% show strong recent momentum.
- Piotroski F-score of 7/9 suggests decent financial health across profitability, leverage, and operational efficiency.
- ROCE of 16.19% is meaningfully higher than ROE, indicating reasonable capital productivity.
- PEG ratio of 1.11 makes the valuation less extreme if high growth continues.
Concerns
- P/E of 49.49 and P/B of 13.96 versus ROE of 8.17% leave no margin of safety.
- Latest quarter net margin is only about 1.8% (₹3 crore profit on ₹167 crore sales), leaving little cushion against cost shocks.
- Dividend yield is zero, so investors depend entirely on future share price appreciation.
- Stock is at its 52-week high of ₹86.72 against a low of ₹14.49, suggesting much of the good news is already priced in.
AI Analysis
Let me look at Mini Diamonds as a business, not a ticker. At ₹86.72, Mr Market has marked the company at ₹204 crore. For that I get a company earning just over ₹4 crore on a trailing basis — roughly 49.5 times earnings. The 44% growth in sales and profit grabs attention, but I cannot pay 49 times earnings and 14 times book for an 8.17% ROE. If the underlying equity earns 8.17%, paying ₹14 for every ₹1 of book value leaves very little room for error. The latest quarter illustrates the business nature: ₹167 crore of sales produced only ₹3 crore of net profit, a hair under 2% margin. Jewellery and diamond trading is competitive, cyclical and inventory-heavy; a business with low margins and no dividend must deliver flawless execution to justify this premium. On the positive side, ROCE is 16.19% and the Piotroski score of 7 suggests recent fundamentals are improving. The PEG of 1.11 tells me the market is pricing in continued high growth. But the stock has already gone from ₹14.49 to ₹86.72 in 52 weeks. In the Graham tradition, I want margin of safety — paying ₹87 for ₹6.21 of book value and a sub-10% ROE is the opposite. I need to see several more quarters of this growth and margin discipline before I can call it a wonderful business at a fair price. Today it looks like a fast grower priced to perfection.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer