At a Glance
From zero-profit textile trader to 900% revenue growth jeweller, AABL’s transition is nothing short of miraculous. But behind the ₹930 stock price lies a P/E of 787, promoter pledging, 27% margin jumps, and some truly eyebrow-raising quarterly gymnastics. Coincidence? Karma? Or something more… bullionaire-style?
1. 🎯 Introduction – WTF Is Going On Here?
- 📈 Stock up 658% in 1 year, 218% CAGR over 3 years
- 💰 FY25 Net Profit: ₹1.8 Cr vs ₹0.26 Cr in FY24
- 🛍️ FY25 Revenue: ₹74 Cr vs ₹7.3 Cr in FY24
- 💎 Business pivot from lace to luxury jewellery
- 💀 P/E: 787x
- 🔒 Promoters hold just 20.7%, and 27.4% is pledged
This ain’t your average SME. It’s either the most underrated multibagger… or the next “Mehul Choksi: Surat Chapter”.
2. 💼 WTF Do They Even Do?
Originally:
- 🧵 Sold fabrics, grey cloth, and lace via job work
- Focused on low-margin textile trading
Now:
- 💍 Full pivot to gold, diamond, silver jewellery
- Trading + manufacturing hybrid
- Sales model not clearly segmented
- No export disclosures, no big retailer tie-ups
It’s like they found a magic lamp and said, “Screw cotton, bring on the carats.”
3. 💸 Financials – Goldmine or Glittery Mirage?
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue (₹ Cr) | 3.1 | 13.2 | 7.3 | 73.8 |
| Net Profit (₹ Cr) | -0.42 | 0.26 | 0.26 | 1.81 |
| OPM (%) | -13.5% | 0% | -2% | 3.3% |
| EPS (₹) | -1.39 | 0.86 | 0.21 | 1.18 |
| ROE | -5.4% | 4.4% | 1.3% | 4.66% |
🧠 TL;DR:
- Revenue went 10x. Profit went 7x.
- But ROE is still below 5%
- Operating margins still low single digits
And yet… market cap is ₹1,424 Cr
4. 🤯 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹930 |
| Market Cap | ₹1,424 Cr |
| P/E | 787x |
| Book Value | ₹34.5 |
| P/B | 27x |
| Fair Value (EduGuess™) | ₹90 – ₹130 |
This is crack-level pricing, reserved for SaaS unicorns or Netflix protagonists.
Even if profits grow 10x again, it still won’t be cheap.
5. 🍿 What’s Cooking – Orders, Warrants & Drama
- 📈 FY25 Revenue = ₹74 Cr, Profit = ₹1.81 Cr (YOY 10x jump)
- 🧾 No clarity on client base, order book, or recurring revenue
- 📜 ₹10.34 Cr preferential warrants issued at ₹235/share in 2024
- 🤷 30 lakh convertible warrants were cancelled mid-year
- 🧍 Promoters went from 38.8% to 20.7%, pledging 27.4% of that
- 📦 Debtor days jumped from 48 → 136
- 🧠 No dividend, no detailed breakup of bullion vs textile
How did a company with ₹0.18 Cr PAT in FY24 hit ₹1.81 Cr in FY25?
No detailed investor presentation. No concalls. No answers.
6. 🏦 Balance Sheet – Kitna Gold, Kitna Fiction?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net Worth | ₹9.9 Cr | ₹24.8 Cr | ₹52.8 Cr |
| Total Assets | ₹10.2 Cr | ₹25.1 Cr | ₹58 Cr |
| Debt | ₹0 Cr | ₹0 Cr | ₹0 Cr |
| Fixed Assets | ₹0.14 Cr | ₹0.12 Cr | ₹0.18 Cr |
| Inventory | ₹0.4 Cr | ₹1.4 Cr | ₹17.1 Cr |
| Receivables | ₹0.2 Cr | ₹0.02 Cr | ₹27.2 Cr |
🤯 Receivables explosion with no debt? Margin expansion with no infra? Fixed asset base still ₹18 Lakh.
Too good? Too fast? Too soon?
7. 🧾 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | FCF | Financing |
|---|---|---|---|
| FY25 | -₹40.4 Cr | – | ₹26.3 Cr |
| FY24 | ₹0.25 Cr | – | ₹14.6 Cr |
Negative cash flow in FY25 despite profits = working capital drain.
Financing done through preferential equity, not debt. So far, all dilution.
8. 📉 Ratios – Sexy or Suspicious?
| Metric | Value |
|---|---|
| ROE | 4.66% |
| ROCE | 6.21% |
| OPM | 3.32% |
| P/E | 787x |
| P/B | 26.9x |
| Debt/Equity | 0x |
| Promoter Holding | 20.7% |
| Promoter Pledge | 27.4% |
It ticks all the “low quality high price” boxes.
9. 💰 P&L Breakdown – Show Me the Money
- FY25 PAT: ₹1.81 Cr
- FY25 Revenue: ₹73.8 Cr
- Margins: 3.3%, though better than previous years
- No interest cost = no debt
- Other income almost zero
- Capex negligible
This isn’t a growth capex story. It’s a margin magic story.
10. 🕵️ Peer Comparison – Who Else is Blinged Out?
| Company | PE | ROE | OPM | Sales (Cr) |
|---|---|---|---|---|
| Aayush Art | 787x | 4.66% | 3.32% | 74 Cr |
| KPR Mill | 49x | 17% | 19.5% | 6,388 Cr |
| Trident | 43x | 8.3% | 13% | 6,987 Cr |
| Indo Count | 23x | 11.3% | 13% | 4,151 Cr |
Aayush Art has lowest profitability, smallest scale, but highest valuation.
Suspicious? Slightly.
11. 🧾 Miscellaneous – Promoters, Dilutions, History
- 👨 Promoters: 20.7%, pledged 27%
- 🧾 Multiple warrant issues and cancellations
- 📉 Promoter stake down from 38% to 20% in 2 years
- 📂 Originally a textile job work firm
- 💍 Now: Jewellery & bullion trader. No manufacturing infra disclosed.
How did they scale so fast? From ₹0.2 Cr to ₹74 Cr revenue without plant & machinery?
12. 🧑⚖️ EduInvesting Verdict™
“The only thing shinier than Aayush Art’s stock is the red flag fluttering beside it.”
✅ 10x growth in sales
✅ No debt
✅ High visibility stock price (lol)
❌ PE of 787
❌ Promoter dilution and pledging
❌ Receivables chaos
❌ Zero asset growth
❌ No segmental clarity
Fair Value Range: ₹90 – ₹130
Until this company shows credible breakdown of operations and cash flow, it remains a “watch from distance” case.
✍️ Written by Prashant | 📅 July 8, 2025
Tags: Aayush Art, SME IPOs, Bullion Stocks, Red Flag Stocks, Jewellery Trading, Lace to Gold, EduInvesting, Pledged Promoters, Preferential Issue Stocks, NSE SME
