Narbada Gems & Jewellery is the quiet cousin in the Sanghi jewellery family. Incorporated in 1992, it’s a ₹151 crore market-cap boutique player focusing on handcrafted rose-cut, flat diamond, and colour stone jewellery. Margins look impressive (11% OPM, better than Uday), but the cash cycle is longer than a South Indian wedding. Stock just shot up 16% in a day (₹71.5), but with sales barely moving (-2% in FY25), this feels like more sparkle than substance.
2. Introduction
If Titan is the Ambani wedding, Narbada is the hand-made invitation card. Niche, beautiful, and definitely expensive compared to effort put in.
The company makes studded gold jewellery (98% of revenue), with a design-heavy focus on flat diamond jewellery. They recently launched “Vilandi” – royal necklaces in Polki + emerald + ruby – targeting India’s maharani vibes market. Their clients? The who’s who of jewellery retail — Kalyan, Malabar, GRT, Chemmanur, P. Satyanarayan. Basically, if you’ve ever seen a big ad with a Bollywood actress dripping in diamonds, there’s a 5% chance Narbada quietly supplied it.
Problem? Sales haven’t grown much. FY25 revenue = ₹82.7 Cr vs ₹93 Cr in FY22. Despite new factories and collections, demand hasn’t scaled. The Sanghi family wants to merge Narbada into Uday Jewellery — consolidation of the bling empire.
3. Business Model (WTF Do They Even Do?)
Narbada is an old-school, handcrafted jeweller with in-house designers. Operations:
Target Market: Five segments → National chains (Kalyan, Malabar), regional chains (Chemmanur, Sulthan), family jewellers (Mangatrai, Amarsons), distributors, and exporters.
Exports: Just 5% of revenue, but management says Middle East is next growth zone.
New Factory: At Basheerbagh, Hyderabad, capacity 3x. Leased property, promoter-owned. (So rent flows back to family pockets. Classic.)
New Launches: “Vilandi” Polki jewellery line → royal necklaces heavy with rubies, emeralds, diamonds.
Verdict: Focus on niche premium segment, but scale problem.
4. Financials Overview
Source table
Metric
Jun’25 (Q1 FY26)
Jun’24 (Q1 FY25)
Mar’25 (Q4 FY25)
YoY %
QoQ %
Revenue
₹20.7 Cr
₹23.4 Cr
₹21.8 Cr
-11.4%
-5.0%
EBITDA
₹3.9 Cr
₹4.1 Cr
₹1.9 Cr
-4.8%
+111%
PAT
₹2.3 Cr
₹2.6 Cr
₹0.8 Cr
-9.0%
+198%
EPS (₹)
1.10
1.21
0.37
-9.1%
+197%
Commentary: Sales declining, but cost control salvaged margins. PAT doubled QoQ, but YoY shrink. EPS annualised ~₹4.4 → P/E ~16x on forward basis vs 32.5x TTM.
5. Valuation (Educational FV Range Only)
P/E Method: EPS FY25 ₹2.2 × 20–30 → FV ₹44–₹66
EV/EBITDA: EV ₹179 Cr / EBITDA ₹9.2 Cr = 19x. Peers at 15–25x → FV ₹60–₹80
Final FV Range: ₹55–₹75 CMP = ₹71.5 → trading at upper band, needs sales growth to justify.
6. What’s Cooking – News, Triggers, Drama
Merger with Uday Jewellery: NCLT-directed shareholder meet underway. Swap ratio = 0.4623. Narbada + Uday = one consolidated Sanghi empire. This is the single biggest trigger.
