Eighty Jewellers (543518)

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

Key Financials

Strengths

• P/E of 7.68 with 153.97% profit growth gives an extraordinarily low PEG of 0.09, suggesting the market is pricing in little future growth.
• Piotroski F-Score of 7/9 indicates improving fundamentals in profitability and operating efficiency.
• Latest quarter sales of ₹55 Cr and net profit of ₹3 Cr show meaningful margin expansion, with ROCE at a reasonable 10.10%.
• Sales are still growing at 9.61%, and the stock is showing strong momentum near its 52-week high of ₹48.

Concerns

• Profit growth of 153.97% against only 9.61% sales growth may reflect a low base or one-time factors rather than durable earnings power.
• Critical data like book value, debt/equity, ROE and promoter holding are missing, making it impossible to apply Graham's margin-of-safety properly.
• Dividend yield of just 0.35% provides negligible downside support, and the ₹49 Cr market cap implies fragile liquidity and higher business risk.
• The stock is at its 52-week high, leaving no price cushion if the next quarter disappoints.

AI Analysis

When I look at Eighty Jewellers, I see a classic puzzle: a very low price-earnings ratio of 7.68 and a huge profit growth number of 153.97%, but only 9.61% sales growth. That combination tells me the market is being asked to believe in a margin story, not a volume story. The latest quarter shows sales of ₹55 Cr and net profit of ₹3 Cr; if those margins are durable, the current market cap of ₹49 Cr is not demanding much. The Piotroski score of 7/9 gives me some comfort that the company's fundamentals are improving, and an ROCE of 10.10% is acceptable for a small jeweller. Yet the value investor in me is uncomfortable with all the missing information. There is no book value, no debt-equity ratio, no ROE, no promoter holding figure. Graham believed in knowing what a business owns and owes; without that, I cannot compute a true margin of safety. The dividend yield of 0.35% is almost nothing, so I am not being paid to wait. The stock is at the top of its 52-week range, ₹48 versus ₹22.20, which is good momentum but also a risk: no price cushion. A 153.97% profit jump against 9.61% sales growth is usually a base effect or a one-time benefit, and Mr. Market often overdoes such moves. At ₹49 Cr market cap, this is a very small boat. I would treat it as a tentative turnaround, not a compounder, and only invest money I could afford to lose.

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