1. At a Glance
Ashapuri Gold Ornament Ltd (AGOL) posted a Q1 FY26 net profit of ₹3.17 Cr on revenue of ₹52.95 Cr, with OPM touching 9.5% – its best margin in years. Stock trades at ₹6.6 (P/E 17.5), with market cap ₹221 Cr. Promoter stake? Down to 48% – that’s a red flag in gold.
2. Introduction
Imagine a jeweler that went from dusty wholesale counters to a listed entity with a fancy showroom on C.G. Road, Ahmedabad. Now, despite falling promoter confidence, AGOL is polishing margins and profits like an underdog boxer waiting for the final round knockout.
3. Business Model – What’s Under the Hood?
- Core: Manufacturing and trading of antique gold jewelry.
- Operations: Designs made in-house or outsourced, production mostly job-work.
- Presence: One key showroom; operations primarily Gujarat-based.
- Edge: Cost-efficient outsourcing, low capex model.
Punchline: They don’t mine gold, but they mine margins out of thin air.
4. Financials Overview
Q1 FY26 Snapshot:
- Revenue: ₹52.9 Cr (+19.7% YoY)
- EBITDA: ₹5.0 Cr
- EBITDA Margin: 9.5% (vs 6% LY)
- PAT: ₹3.17 Cr (+21.9% YoY)
- EPS: ₹0.10
Verdict: Profits shining, but volumes need more sparkle.
5. Valuation – What’s This Worth?
- P/E: 17.5 (reasonable for a micro-cap)
- Book Value: ₹4.4 (P/B 1.5x)
- ROE: 10.2%
Fair Value Range: ₹5.5–₹7.5.
At current ₹6.6, valuation looks fairly priced with slight upside.
6. What-If Scenarios
- If retail expansion happens: Revenues double.
- If gold prices swing wildly: Margins crushed.
- If promoters keep selling: Sentiment tanks.
- If debt remains nil: Balance sheet stays clean.
7. SWOT Analysis
Strengths: High growth CAGR (91% in 5Y), almost debt-free, improving debtor days.
Weaknesses: Low promoter confidence, small scale.
Opportunities: Rise in demand for designer jewelry, urban retail push.
Threats: Gold price volatility, competition from biggies like Titan.
8. Balance Sheet
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity | 25 | 25 | 33 |
| Reserves | 58 | 65 | 113 |
| Borrowings | 7 | 2 | 1 |
| Liabilities | 91 | 95 | 153 |
Debt is negligible – cleaner than most gold.
9. Cash Flow
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | -2 | 5 | -36 |
| Investing | -0 | 1 | -9 |
| Financing | 2 | -6 | 45 |
| Net Cash | 0 | 0 | 0 |
Operating cash flow swings like a pendulum.
10. Ratios – Sexy or Stressy?
| Metric | FY24 | FY25 |
|---|---|---|
| ROE (%) | 7 | 10 |
| ROCE (%) | 10 | 14 |
| OPM (%) | 5 | 5 |
| D/E | 0.03 | 0.01 |
Ratios improving, but still not Titan-level sexy.
11. P&L Breakdown
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 158 | 165 | 316 |
| EBITDA | 4 | 10 | 16 |
| PAT | 2 | 7 | 12 |
Growth: Yes. Consistency: Meh.
12. Peer Comparison
| Company | P/E | ROE% | Sales Qtr Cr |
|---|---|---|---|
| Ashapuri Gold | 17.5 | 10.2 | 52.9 |
| Titan | 90.4 | 31.8 | 14916 |
| Kalyan Jewels | 86.3 | 15.9 | 6181 |
| PC Jeweller | 16.7 | 12.7 | 699 |
AGOL is the small fish in a gold ocean.
13. EduInvesting Verdict™
Ashapuri Gold is like that neighborhood jeweler with ambition – margins improving, debt nil, but scale tiny and promoter exits worrying.
Conclusion: Glittering numbers, but don’t expect it to outshine Titan anytime soon. This is more a silver medal than a gold rush.
Written by EduInvesting Team | 28 July 2025
Tags: Ashapuri Gold Ornament, Jewelry Stocks, Q1 FY26, EduInvesting Premium
