Goldiam Intl. (GOLDIAM)

FairStock Score: 54/100 — MIXED

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

Key Financials

Strengths

• Near-zero debt (D/E 0.02) with strong promoter holding of 58.51%.
• ROCE of 24.59% shows efficient capital use.
• Profit growth of 37.52% outpacing sales growth of 14.33% suggests margin expansion or operating leverage.
• Piotroski F-score of 7/9 and PEG of 0.98 point to decent fundamentals at a reasonable growth price.
• Latest quarter strength: ₹320 Cr sales and ₹68 Cr net profit.

Concerns

• P/E of 25.37 and P/B of 14.27 are rich; book value of ₹27.76 versus price of ₹396.05 leaves little margin of safety.
• ROE of 13.60% is modest for such a high price-to-book multiple.
• Gems and jewellery is discretionary and volatile, as seen in the 52-week range of ₹265-₹507.
• FairStock Score of 49/100 is mixed, and dividend yield of 0.85% means returns depend on continued growth.

AI Analysis

Let me look at Goldiam with fresh eyes. I like zero debt—a debt/equity of 0.02 is as clean as a jeweller's display case. Promoter holding of 58.51% tells me the people running the shop have skin in the game. ROCE of 24.59% is respectable, though the 13.60% ROE reminds me that the equity base is thin; book value is only ₹27.76 against a price of ₹396.05. That is a very rich premium to book. The growth picture is interesting. Sales grew 14.33%, but profit jumped 37.52%. That kind of profit outpacing revenue can mean operating leverage or margin discipline; in a cyclical business like gems and jewellery, I treat it as good news until quarterly volatility proves otherwise. The latest quarter shows ₹320 Cr sales and ₹68 Cr net profit—a strong print, but one quarter is not a trend. The Piotroski F-score of 7/9 is reassuring; the FairStock score of 49/100 says mixed. On valuation, a P/E of 25.37 is not cheap, and a PEG of 0.98 makes it look reasonable only if 37.5% profit growth continues. As Graham would have said, the margin of safety lives in the future cash flows, not in the price. The dividend yield is 0.85%, so you're here for growth, not income. I'd want to understand the sustainability of margins and import/export and gold price dynamics before paying this price. The 52-week range of ₹265-₹507 shows how volatile this business can be. I prefer certainty; Goldiam has a clean balance sheet and solid recent growth, but at this valuation I need a longer and more predictable runway.

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