1. At a Glance
Vega Jewellers is the classic corporate chameleon—once a chemical trader, now flaunting the jeweller tag. The stock? Up 7,302% in 1 year (multibagger alert?), but the business fundamentals? Let’s just say they sparkle less than a fake diamond.
2. Introduction with Hook
Imagine your local hardware store suddenly branding itself as Tiffany’s. That’s Vega Jewellers. Sales crashed, profits vanished, yet investors bid this stock to the moon. Two key stats:
- P/E is 753 (investors buying dreams, not cash flows)
- ROE is 2.09% (returns slower than your 2G internet)
3. Business Model (WTF Do They Even Do?)
Originally PH Trading, selling industrial chemicals like caustic soda and hydrogen peroxide. Now rebranded, with ventures into LLPs for jewellery operations (ELR LLP, KKD LLP). Basically, they sell chemicals but tell the world they’re jewellers—corporate cosplay at its finest.
4. Financials Overview
- FY25 Sales: ₹10.3 Cr (up from zero in prior years)
- Net Profit: ₹0.19 Cr (tiny sparkle)
- OPM: -1.07% (losing money while selling bling)
- Market Cap: ₹143 Cr
The numbers scream “fragile” while the stock shouts “rocket.”
5. Valuation
- P/E: 753 (extreme bubble vibes)
- CMP/BV: 0.46x (cheap relative to book, but book value is questionable)
Fair Value Range: somewhere between ₹30–₹60 if fundamentals mattered. Current ₹151 is a moonshot.
6. What’s Cooking – News, Triggers, Drama
- Formed Vega Jewellers ELR LLP with capital jump from ₹1 Cr to ₹30 Cr.
- Increased stake in Vega Jewellers KKD LLP to 68%.
- Rebranding from chemicals to jewellery (investors love a shiny story).
- No dividends, no clarity, but lots of hype.
Drama: high.
7. Balance Sheet
| Particulars | FY24 | FY25 |
|---|---|---|
| Assets | ₹2.99 Cr | ₹18.28 Cr |
| Liabilities | ₹0.61 Cr | ₹2.49 Cr |
| Borrowings | ₹0.0 Cr | ₹0.0 Cr |
| Net Worth | ₹1.9 Cr | ₹15.3 Cr |
Assets ballooned thanks to capital infusion, not operating profits.
8. Cash Flow – Sab Number Game Hai
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating CF | ₹-0.04 Cr | ₹-0.13 Cr | ₹0.35 Cr |
| Investing CF | ₹0.03 Cr | ₹0.14 Cr | ₹0.27 Cr |
| Financing CF | ₹0.0 Cr | ₹0.0 Cr | ₹13.22 Cr |
Cash inflow mainly from financing, not business magic.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 2.09% |
| ROCE | 2.53% |
| P/E | 753 |
| PAT Margin | -1.07% |
| D/E | 0.0 |
Sexy? No. Stressy? Definitely.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹0.0 Cr | -₹0.11 Cr | ₹0.16 Cr |
| FY24 | ₹0.0 Cr | -₹0.11 Cr | ₹0.16 Cr |
| FY25 | ₹10.3 Cr | -₹0.11 Cr | ₹0.19 Cr |
Revenue back from the dead, but profits still minimal.
11. Peer Comparison
| Company | Revenue (₹Cr) | PAT (₹Cr) | P/E |
|---|---|---|---|
| Redington | 99,333 | 1,170 | 20 |
| MSTC | 311 | 196 | 18 |
| Polo Queen | 72 | 2.7 | 695 |
| Vega Jewellers | 10.3 | 0.19 | 753 |
Looks like the tiniest fish in the ocean, priced like a shark.
12. Miscellaneous – Shareholding, Promoters
- Promoter holding: 69.9% (decreasing trend)
- Public holding: 30.1%
- LLP Ventures: ELR & KKD expansions
- No institutional investors: because they prefer logic.
13. EduInvesting Verdict™
Vega Jewellers is a shiny shell with very little inside. The rebranding is cosmetic, fundamentals are weak, and the stock price is riding on hope. Good for thrill-seekers, not for sleep-loving investors.
Written by EduInvesting Team | 27 July 2025
Tags: Vega Jewellers, Rebranding Risk, High P/E Stocks, Jewellery Turnaround, Edu Style Analysis, Premium Research
