At a Glance

Banaras Beads Ltd – a company that sells everything from glass beads to imitation jewelry – posted Q1 FY26 results that were as shiny as their products but as tiny as their market cap. Revenue dropped 12% YoY to ₹6.2 Cr, while PAT stood at ₹0.61 Cr (+13% YoY). Despite the dividend charm, the stock slipped 1% to ₹116. Investors clearly prefer diamonds to beads.

Introduction

Incorporated in 1980, Banaras Beads is the OG player in glass bead exports, tapping markets in the US, Europe, and Asia. The brand is synonymous with handicrafts, but in stock market terms, it’s more of a collector’s item than a multibagger. Sales growth over 5 years? A laughable 4%. ROE? Even lower than your FD rates. Yet, it keeps churning profits and dividends like a stubborn artisan in Varanasi.

Business Model (WTF Do They Even Do?)

The company’s core business is:

• Manufacturing & Exporting: Glass beads, imitation jewelry, cords, and miscellaneous handicrafts.
• Markets: Heavy reliance on exports, with domestic contribution being minimal.
• Moat?: Unique artisan-based products but limited scalability.

Essentially, they sell fancy beads worldwide and occasionally throw a dividend to keep shareholders awake.

Financials Overview

Q1 FY26 Snapshot:

• Revenue: ₹6.21 Cr (-12% YoY)
• Operating Profit: ₹0.92 Cr (OPM 14.8%)
• Net Profit: ₹0.61 Cr (+13% YoY)
• EPS: ₹0.92

FY25 Highlights:

• Revenue: ₹31.6 Cr (+11% YoY)
• PAT: ₹3.1 Cr (+12% YoY)
• OPM: 13%
• EPS: ₹4.7

Margins look decent, but growth is crawling slower than a snail on vacation.

Valuation

• P/E: 24.5 (expensive for this growth rate)
• P/B: 1.38
• ROE: 5.6%

Fair Value Estimation:

1. P/E Method: EPS FY26E ~₹5; fair P/E 12–15 → ₹60–₹75
2. EV/EBITDA: Small company, limited visibility, fair range ₹80–₹90
3. DCF: Meh, low cash flows.

Fair Value Range: ₹70–₹90 (current ₹116 is overpriced for its growth)

What’s Cooking – News, Triggers, Drama

• Q1 Results: Stable profit, declining revenue.
• Dividend: High payout (49%) is the only candy for investors.
• Trigger: Potential revival in handicraft exports.
• Risk: Demand slump, forex fluctuations, and cheap Chinese imitation products flooding markets.

Balance Sheet

Commentary: Debt is low, but so is the return on equity. Safe but sleepy.

Cash Flow – Sab Number Game Hai

Observation: Cash flows swing wildly like a bead necklace in a storm.

Ratios – Sexy or Stressy?

Verdict: Low returns, high valuation – definitely not sexy.

P&L Breakdown – Show Me the Money

Commentary: Profit is steady but lacks the spark of aggressive growth.

Peer Comparison

Roast: Among the glitterati of jewelry, Banaras Beads is the equivalent of a street-side anklet seller.

Miscellaneous – Shareholding, Promoters

• Promoters: 58.1%
• FIIs: 0.04%
• Public: 41.8%
• Buzz: None. Stock moves like it’s on vacation.

EduInvesting Verdict™

Banaras Beads is a micro-cap with stable profits, low debt, and high dividend payout. But growth is stagnant, and valuations are stretched.

SWOT

• Strengths: Debt-free, export niche, high dividend.
• Weaknesses: Poor growth, low ROE, tiny scale.
• Opportunities: Niche handcrafted exports could see revival.
• Threats: Competition from mass-produced alternatives, currency risks.

Final Take: At ₹116, this is less an investment and more a sentimental collectible. Great for stability, terrible for aggressive returns.

Written by EduInvesting Team | 31 July 2025
SEO Tags: Banaras Beads, Handicrafts, Microcap Stocks