1. At a Glance – Blink and You’ll Miss the Profit
Parshva Enterprises Ltd (PEL) is a ₹148 Cr market cap diamond trader selling sparkle at wholesale prices and earning profits that are… emotionally fragile. The stock trades at ₹145, dangerously close to its ₹127 low, miles away from the ₹321 high, and sits on a jaw-dropping P/E of 704x — a valuation that assumes either a diamond supercycle or divine intervention.
Latest Q3 FY26 numbers?
Revenue came in at ₹5.91 Cr, PAT at ₹0.04 Cr, down 33% QoQ, while margins hovered around 2% like a bored security guard. ROE is 1.61%, ROCE 2.96%, and EPS ₹0.04 — yes, paisa-level drama.
Promoters hold 74.6%, debt is negligible, working capital has magically improved, and yet… returns refuse to show up. This stock doesn’t scream “growth story” — it whispers “accounting exercise.”
So the question is simple:
Is this a diamond trader polishing patience, or a valuation mirage wrapped in carats?
2. Introduction – When Shine Doesn’t Translate to Shareholder Wealth
Incorporated in 2017, Parshva Enterprises jumped from BSE SME to the main board in 2022, wearing ambition like a well-cut solitaire. The company operates across cut & polished diamonds, some jewellery trading, and a side hustle in real estate investments.
But here’s the twist: despite diamonds being luxury assets, Parshva runs a low-margin, high-rotation trading model. This is not Tiffany. This is Surat wholesale energy with Excel sheets doing most of the heavy lifting.
And yet, the market values it like a rare gem.
Revenue has stagnated, profits have shrunk, and growth metrics look allergic to
acceleration. Still, the stock trades at 10.6x book value for a business earning sub-2% ROE.
So are investors betting on a turnaround, or just mesmerised by the word diamond?
3. Business Model – WTF Do They Even Do?
Think of Parshva as a middleman in the diamond ecosystem.
What they actually do:
- Buy rough & polished natural diamonds (0.10–5 carats)
- Trade them to wholesalers, jewellers, and manufacturers
- Occasionally sell gold jewellery (low contribution)
- Park surplus money into real estate trading
There is no brand moat, no retail dominance, no pricing power. This is a volume-driven arbitrage business where margins are thin and working capital discipline decides survival.
In FY23, 99% of revenue came from cut & polished diamond sales. Jewellery and consultancy are rounding errors.
So let’s be clear — this is not a luxury company.
It’s a trading desk with gemstones instead of steel coils.
Ask yourself:
How many diamond traders deserve 700x earnings?
4. Financials Overview – Numbers That Need a Microscope
📊 Quarterly Comparison (₹ Cr)
| Metric | Latest Qtr (Dec 25) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 5.91 | 6.36 | 6.28 | -7.1% | -4.1% |
| EBITDA | 0.12 | 0.14 | 0.12 | -14% | 0% |
| PAT | 0.04 | 0.08 | 0.07 | -50% | -33% |
| EPS (₹) | 0.04 | 0.08 | 0.07 | -50% | -33% |
