Goblin India (542850)

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Latest quarter is profitable: ₹25 Cr sales and ₹2 Cr net profit implies a ~8% net margin, showing some earning capacity.
• Sales decline is tiny at -0.12%, so revenue has not collapsed despite the profit drop.
• P/E of 15.26 is moderate, but it only becomes attractive if earnings stabilise.
• Market cap of ₹61 Cr gives a small base; if capital allocation improves, growth can be meaningful.

Concerns

• Profit growth is -41.22%, and trailing profitability is deteriorating quickly.
• Piotroski F-Score of 3/9 signals poor financial health and likely operational strain.
• ROCE of 7.73% is low for a jewellery business that requires significant working capital.
• No dividend, and key data (book value, debt/equity, promoter holding) are missing; stock is at its 52-week high of ₹43.78 despite weak fundamentals.

AI Analysis

Reading Goblin India, I am reminded that a wonderful business should show steady earning power, not dependence on a single quarter. The latest quarter did show ₹25 Cr in sales and ₹2 Cr in net profit, so it is not broken. But the trend is troubling: sales growth is -0.12%, essentially flat, and profit growth is -41.22%. That is not the kind of compounding I want. With a Piotroski F-Score of 3/9, the underlying financial health is weak. ROCE is only 7.73%, which is below what I would expect from a company with pricing power. Gems and jewellery is a competitive, cyclical trade; success depends on inventory, working capital and consumer sentiment, and there is little evidence of a durable moat here. At ₹43.78, the stock is at the very top of its 52-week range of ₹5.95-₹43.78. The market cap is ₹61 Cr, and the P/E is 15.26. A P/E of 15 may look reasonable, but when profits have fallen by over 41%, the trailing earnings are not a reliable guide. The company pays no dividend, so I cannot rely on income while waiting for value to show up. I also lack key data like book value, promoter holding and debt/equity, which Graham would never let pass. Insufficient data makes me more cautious, not less. I do not see a margin of safety. The stock may be a cyclical candidate, but buying at the top of the range with deteriorating fundamentals is not value investing. I would wait for better numbers or a lower price before committing any capital.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer