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Last Updated on: 22 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 543518 | NSE: EIGHTY

Fundamental Analysis of Eighty Jewellers Ltd

Share Price and Basic Stock Data

Last Updated: July 19, 2024, 10:01 pm

Market Cap 46.6 Cr.
Current Price 45.7
High / Low64.6/40.0
Stock P/E32.0
Book Value 24.8
Dividend Yield0.00 %
ROCE8.05 %
ROE6.12 %
Face Value 10.0
PEG Ratio-0.80

Data Source: screener.in

Competitors of Eighty Jewellers Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Eighty Jewellers Ltd 46.6 Cr. 45.764.6/40.032.0 24.80.00 %8.05 %6.12 % 10.0
Deep Diamond India Ltd 19.0 Cr. 5.949.29/5.2047.5 6.370.00 %%% 1.00
Bhakti Gems & Jewellery Ltd 24.8 Cr. 16.525.2/11.031.8 15.60.00 %6.15 %3.88 % 10.0
Atlas Jewellery India Ltd 93.3 Cr. 9.27/ 16.30.00 %0.35 %0.33 % 10.0
Asian Star Company Ltd 1,252 Cr. 7821,046/69116.2 9430.19 %6.25 %5.25 % 10.0
Industry Average0 Cr391.7641.36121.340%0%0%6.00

Quarterly Result

MonthSep 2021Mar 2022Sep 2022Mar 2023Sep 2023Mar 2024
Sales44.1472.1743.5050.4134.7746.20
Expenses42.6570.5342.2148.9533.4944.68
Operating Profit1.491.641.291.461.281.52
OPM %3.38%2.27%2.97%2.90%3.68%3.29%
Other Income0.220.750.130.250.020.08
Interest0.550.380.380.650.510.39
Depreciation0.070.060.050.060.050.05
Profit before tax1.091.950.991.000.741.16
Tax %24.77%35.90%25.25%33.00%25.68%23.28%
Net Profit0.831.250.750.670.560.90
EPS in Rs1.111.670.740.660.550.88

Last Updated: July 11, 2024, 10:40 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 10:04 pm

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales78.6761.7576.26115.1093.5280.98
Expenses75.7858.1169.95111.9490.7778.17
Operating Profit2.893.646.313.162.752.81
OPM %3.67%5.89%8.27%2.75%2.94%3.47%
Other Income0.300.380.380.970.380.10
Interest1.361.641.530.961.020.91
Depreciation0.420.280.190.130.100.09
Profit before tax1.412.104.973.042.011.91
Tax %28.37%26.19%22.74%31.91%29.35%23.56%
Net Profit1.001.553.842.081.421.46
EPS in Rs12.0018.6046.092.771.391.43
Dividend Payout %0.00%0.00%0.00%0.00%0.00%0.00%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)55.00%147.74%-45.83%-31.73%2.82%
Change in YoY Net Profit Growth (%)0.00%92.74%-193.58%14.10%34.55%

Growth

Compounded Sales Growth
10 Years:%
5 Years:1%
3 Years:2%
TTM:-13%
Compounded Profit Growth
10 Years:%
5 Years:7%
3 Years:-28%
TTM:12%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:6%
Return on Equity
10 Years:%
5 Years:16%
3 Years:9%
Last Year:6%

Last Updated: July 17, 2024, 7:12 am

Balance Sheet

Last Updated: July 10, 2024, 10:04 pm

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital0.830.830.837.5010.2010.20
Reserves3.134.698.453.8713.6615.11
Borrowings12.1715.6512.336.8311.166.77
Other Liabilities11.3310.5810.3613.285.254.46
Total Liabilities27.4631.7531.9731.4840.2736.54
Fixed Assets1.411.140.970.850.860.45
CWIP0.000.000.000.000.000.00
Investments0.801.081.551.971.361.44
Other Assets25.2529.5329.4528.6638.0534.65
Total Assets27.4631.7531.9731.4840.2736.54

Reserves and Borrowings Chart

Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 1.88-1.572.290.46-8.961.60
Cash from Investing Activity -0.69-0.28-0.920.430.070.32
Cash from Financing Activity -1.561.91-0.39-1.869.08-2.09
Net Cash Flow-0.360.050.98-0.970.18-0.17

Free Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-9.28-12.01-6.02-3.67-8.41-3.96

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days7.4211.111.7711.5410.97
Inventory Days1,046.43124.3176.64132.74
Days Payable352.5110.9632.8213.10
Cash Conversion Cycle701.3411.11115.1155.36130.61
Working Capital Days69.97120.1188.6952.39129.15
ROCE %20.05%30.39%19.99%10.79%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2022Apr 2022Sep 2022Mar 2023Sep 2023Mar 2024
Promoters100.00%73.53%73.53%73.53%73.53%73.53%
Public0.00%26.47%26.48%26.46%26.48%26.47%
No. of Shareholders7501219232247289

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 21Mar 20Mar 19
FaceValue10.0010.0010.00
Basic EPS (Rs.)46.1317.6412.01
Diluted EPS (Rs.)46.1317.6412.01
Cash EPS (Rs.)48.3720.9917.04
Book Value[Excl.RevalReserv]/Share (Rs.)111.4765.3447.70
Book Value[Incl.RevalReserv]/Share (Rs.)111.4765.3447.70
Revenue From Operations / Share (Rs.)939.86774.44979.14
PBDIT / Share (Rs.)61.9428.6121.90
PBIT / Share (Rs.)59.7025.2616.87
PBT / Share (Rs.)59.7025.2616.87
Net Profit / Share (Rs.)46.1317.6412.01
NP After MI And SOA / Share (Rs.)46.1317.6412.01
PBDIT Margin (%)6.593.692.23
PBIT Margin (%)6.353.261.72
PBT Margin (%)6.353.261.72
Net Profit Margin (%)4.902.271.22
NP After MI And SOA Margin (%)4.902.271.22
Return on Networth / Equity (%)41.3826.9925.17
Return on Capital Employeed (%)39.9723.2818.27
Return On Assets (%)13.434.623.64
Total Debt / Equity (X)1.182.542.50
Asset Turnover Ratio (%)2.602.190.00
Current Ratio (X)1.541.271.27
Quick Ratio (X)0.100.090.12

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 49.54

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 8.40% compared to the current price 45.7

Intrinsic Value: 29.66

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 35.11% compared to the current price 45.7

Last 5 Year EPS CAGR: -40.14%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (84.38 cr) and profit (2.57 cr) over the years.
  1. The stock has a low average ROCE of 13.54%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 76.72, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 168.92, which may not be favorable.
  4. The company has higher borrowings (10.82) compared to reserves (8.15), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Eighty Jewellers Ltd:
    1. Net Profit Margin: 4.90%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 39.97% (Industry Average ROCE: 0%%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ✓ ROE%: 41.38% (Industry Average ROE: 0%%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): N/A
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.10
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✓ Stock P/E: 32.0 (Industry average Stock P/E: 41.36)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✗ Total Debt / Equity: 1.18
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Eighty Jewellers Ltd. is a Public Limited Listed company incorporated on 15/09/2010 and has its registered office in the State of Chattisgarh, India. Company’s Corporate Identification Number(CIN) is L27205CT2010PLC022055 and registration number is 022055. Currently Company is involved in the business activities of Wholesale of other household goods. Company’s Total Operating Revenue is Rs. 116.31 Cr. and Equity Capital is Rs. 7.50 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Gems, Jewellery & Precious MetailsA.T Palace, Kotwali Chowk, Chhattisgarh Chattisgarh 492001info@eightyjewels.in
https://eightyjewels.in
Management
NamePosition Held
Mr. Nikesh BardiaChairman & Managing Director
Mr. Nitin Kumar BardiaWholeTime Director & CFO
Mrs. Ankita BardiaNon Executive Director
Mr. Rishabh JainIndependent Director
Mr. Pawan BardiaIndependent Director

FAQ

What is the latest fair value of Eighty Jewellers Ltd?

The latest fair value of Eighty Jewellers Ltd is ₹49.54.

What is the Market Cap of Eighty Jewellers Ltd?

The Market Cap of Eighty Jewellers Ltd is 46.6 Cr..

What is the current Stock Price of Eighty Jewellers Ltd as on 22 July 2024?

The current stock price of Eighty Jewellers Ltd as on 22 July 2024 is 45.7.

What is the High / Low of Eighty Jewellers Ltd stocks in FY 2024?

In FY 2024, the High / Low of Eighty Jewellers Ltd stocks is 64.6/40.0.

What is the Stock P/E of Eighty Jewellers Ltd?

The Stock P/E of Eighty Jewellers Ltd is 32.0.

What is the Book Value of Eighty Jewellers Ltd?

The Book Value of Eighty Jewellers Ltd is 24.8.

What is the Dividend Yield of Eighty Jewellers Ltd?

The Dividend Yield of Eighty Jewellers Ltd is 0.00 %.

What is the ROCE of Eighty Jewellers Ltd?

The ROCE of Eighty Jewellers Ltd is 8.05 %.

What is the ROE of Eighty Jewellers Ltd?

The ROE of Eighty Jewellers Ltd is 6.12 %.

What is the Face Value of Eighty Jewellers Ltd?

The Face Value of Eighty Jewellers Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Eighty Jewellers Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE