Shubhlaxmi Jewel (SHUBHLAXMI)

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

Key Financials

Strengths

• P/E of 11.97 and PEG of 0.07 are optically cheap against a 182.80% profit surge.
• Promoter holding of 63.64% aligns management with minority shareholders.
• Piotroski F-Score of 6/9 points to acceptable financial health despite limited disclosures.
• Latest quarter net profit of ₹3 Cr on ₹22 Cr sales shows some near-term earnings power.

Concerns

• Sales fell 6.67%; the 182.80% profit growth may be low-base or non-recurring, not demand-driven.
• ROCE of only 7.98% indicates weak capital efficiency for a jewelry business.
• No dividend, no book value/ROE/debt-equity data makes true balance sheet quality unverifiable; market cap ₹31 Cr is microcap.
• Implied latest-quarter net margin of ~13.6% is unusually high and may not be sustainable.

AI Analysis

Shubhlaxmi Jewel is a tiny ₹31 crore market-cap player in the gems and jewellery trade, currently quoted at ₹23.35. The headline numbers look tempting: a trailing P/E of 11.97 and a PEG of 0.07, thanks to a 182.80% surge in profit. But I have learned to be suspicious when profit rises while sales fall. Revenue declined by 6.67%, so this profit jump is not coming from a growing business. The latest quarter shows sales of ₹22 crore and net profit of ₹3 crore, implying a net margin of roughly 13.6%—far above what a normal jeweller earns. Either the business has changed structure, or this is a low-base/non-recurring profit. I cannot pay for exceptional results I cannot explain. The company returns only 7.98% on capital employed, which is mediocre and well below a quality threshold. I also have no book value, no debt/equity ratio, and no ROE, so I am effectively flying blind on the balance sheet. Promoter holding of 63.64% is a positive sign, and a Piotroski score of 6/9 suggests financial health is not poor. But there is zero dividend, and the stock traded between ₹13.35 and ₹40.00 in the last year—this is a volatile microcap. At ₹23.35, it is in the lower half of that range, but cheapness is not enough. I would need several more quarters of sustained profit, positive sales growth, and better returns on capital before treating Shubhlaxmi as a genuine Buffett-style investment. Today, it is a possible turnaround story, not a proven compounder.

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