1. At a Glance
Laxmi Goldorna posted a ₹2.22 Cr profit in Q1 FY26 on ₹28.67 Cr sales, with an OPM of 18.17%. The company juggles real estate and gold jewelry, and is fresh off an approved merger with Laxmi Infraspace. Sounds shiny, but don’t ignore the 607 working capital days and a P/E of 160.
2. Introduction with Hook
If Titan is the blue-chip of jewelry and PC Jeweller the bad boy of balance sheets, then Laxmi Goldorna is that mysterious cousin who’s suddenly rich but can’t explain what he actually does. With a 177% 1Y return and a Q1 profit of ₹2.22 Cr, it’s dazzling retail investors—even though cash flow is disappearing faster than a Diwali discount.
- P/E: 160
- ROE: 19%
- Q1 Sales: ₹28.67 Cr
- Market Cap: ₹1,686 Cr
- Stock trades at 26x Book Value
3. Business Model (WTF Do They Even Do?)
Dual business heads:
- Jewelry
- Manufacturing + retail of branded gold jewelry
- Gemstones, semi-precious, and custom designs
- Real Estate
- Commercial and residential projects in Ahmedabad
- Recent merger with Laxmi Infraspace
So it’s “Gold during Navratri, Cement during Diwali”.
4. Financials Overview
| Metric | FY24 | FY25 | Q1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 202 | 88 | 28.67 |
| Net Profit (₹ Cr) | 9 | 11 | 2.22 |
| OPM (%) | 9% | 26% | 18.17% |
| ROE (%) | 19% | 19% | — |
Note: Sales dropped 57% YoY in FY25. Was that intentional or just the gold melting away?
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹808 |
| EPS (TTM) | ₹5.06 |
| P/E | 160x |
| Book Value | ₹31.2 |
| P/B | 25.9x |
EduInvesting Fair Value Range:
| Method | FV Range |
|---|---|
| P/E 25x | ₹125 – ₹150 |
| P/B 3x | ₹90 – ₹100 |
| Blended Avg | ₹100 – ₹130 |
Current Price: ₹808
FV Range: ₹100 – ₹130
Verdict: Valuation is 10x ahead of fundamentals, but clearly the market loves a good sparkle.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 EPS: ₹1.06
- Merger Approved: Shareholders & creditors approved Laxmi Infraspace amalgamation
- Strong ROE: 19%, despite volatile sales
- Cash flows negative, working capital worsening
- Low float, high promoter holding = classic retail trap setup?
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 21 |
| Reserves | 44 |
| Borrowings | 102 |
| Total Liabilities | 181 |
| Fixed Assets | 1 |
| Investments | 21 |
| Other Assets | 159 |
Highlights:
- Debt doubled YoY (₹53 Cr → ₹102 Cr)
- Fixed assets = ₹1 Cr → Real estate must be on Mars
- Reserves up, but liabilities growing even faster
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY24 | ₹-9 Cr | ₹-8 Cr | ₹17 Cr | ₹0 Cr |
| FY25 | ₹-45 Cr | ₹3 Cr | ₹41 Cr | ₹-0 Cr |
Operating cash flow is consistently negative. It’s running the business on faith… and financing.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 19.0% |
| ROCE | 16.9% |
| Debtor Days | 119 |
| Inventory Days | 682 (!!) |
| Working Capital Days | 607 |
Translation:
- 682 days of inventory = jewelry that no one’s buying
- CCC = 748 days = cash locked for 2 years
- Stressy AF
10. P&L Breakdown – Show Me the Money
| Quarter | Sales | EBITDA | PAT | OPM |
|---|---|---|---|---|
| Mar ‘24 | ₹127 Cr | ₹8.8 Cr | ₹5.45 Cr | 6.91% |
| Jun ‘24 | ₹15.8 Cr | ₹3.1 Cr | ₹1.17 Cr | 19.7% |
| Mar ‘25 | ₹27.7 Cr | ₹5.28 Cr | ₹0.68 Cr | 19.05% |
| Jun ‘25 | ₹28.7 Cr | ₹5.21 Cr | ₹2.22 Cr | 18.17% |
Margins are volatile, but improving lately.
Jewelry biz is contributing most; real estate impact not visible yet.
11. Peer Comparison
| Company | CMP | Sales (Qtr) | PAT (Qtr) | ROE | P/E |
|---|---|---|---|---|---|
| Titan | ₹3,472 | ₹14,916 Cr | ₹871 Cr | 31.7% | 92x |
| Kalyan | ₹593 | ₹6,181 Cr | ₹188 Cr | 15.9% | 85x |
| Senco | ₹362 | ₹1,362 Cr | ₹62 Cr | 9.8% | 36x |
| LGHL | ₹808 | ₹28.7 Cr | ₹2.22 Cr | 19.0% | 160x |
Verdict: Laxmi Goldorna is a micro player with mega valuation. ROE decent, but scale & brand nowhere close to peers.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2025 |
|---|---|
| Promoter | 74.97% |
| Public | 25.03% |
| No. of Shareholders | 1,660 |
High promoter holding = low float
No dilution in 1 year = okay
Retail entry seems recent → track operator activity
13. EduInvesting Verdict™
Laxmi Goldorna is what happens when you put Titan-level P/E on a barely ₹30 Cr revenue company. Sure, profit’s up. Margins look glamorous. But beneath the sparkle:
- Working capital days = 607
- Inventory = stuck like a cursed necklace
- Cash flow = consistently negative
- Real estate part? Still a mystery
- Merger with Infraspace = future trigger (or dilution?)
Verdict:
Right now, it’s more glitter than gold. The fundamentals are crawling while the stock price sprints. Tread with caution—especially if you didn’t get your jewelry cleaned for free by management.
Metadata
– Written by Eduinvesting Team | 23 July 2025
– Tags: Laxmi Goldorna House Ltd, LGHL, Jewelry Stocks, Real Estate, Merger, Q1 FY26, Operator Alert, Ahmedabad Builders, Microcap Momentum
