At a Glance
D.P. Abhushan Ltd., the Ratlam-based jewellery maverick that also dabbles in wind power (because why not?), just dropped a glittering Q1 FY26. Revenue hit ₹540 crore, Net Profit dazzled at ₹36.4 crore, and OPM rocketed to 10% – the highest in years. The stock at ₹1,666 is already making Titan sweat and Kalyan clutch their calculators. With a 46.5% profit CAGR over five years and promoters holding a fat 75%, this smallcap is acting like it’s ready to gatecrash the big league.
Introduction
Welcome to the world of D.P. Abhushan – where gold isn’t just a metal, it’s a business model that prints money while you sleep. Ratlam’s crown jewel is no longer content with just selling necklaces and mangalsutras; it’s aggressively expanding and showing off windmills like an eco-friendly billionaire. The company just posted Q1 numbers that scream “investors, pay attention!”
Unlike some jewellery chains juggling debt like circus clowns, D.P. Abhushan flaunts a high ROE (35%) and ROCE (33.6%). It’s like the Virat Kohli of the jewellery league – consistent, aggressive, and always delivering centuries (or in this case, crores). The question is: can it keep up this golden streak?
Business Model (WTF Do They Even Do?)
D.P. Abhushan is not just another jeweller selling shiny rocks. They’ve mastered the art of emotional blackmail marketing – weddings, festivals, anniversaries – every excuse to sell gold. Their product line spans everything from nose pins to platinum bling, making them the one-stop shop for everything that glitters.
Oh, and did we mention they also generate electricity through windmills? Because why stick to just jewellery when you can also be a green energy player? The windmill business is tiny, but it’s their ESG badge to keep analysts happy.
Financials Overview
Q1 FY26 Highlights:
- Revenue: ₹540 crore (up 7% YoY)
- EBITDA: ₹55 crore (margin 10%)
- Net Profit: ₹36.4 crore (up 45% YoY)
- EPS: ₹16.07 (compared to ₹11.10 in Q4 FY25)
Annual growth is jaw-dropping with 47% profit CAGR and sales CAGR of 33% over 5 years. Operating margins are climbing from the boring 4-5% range to a respectable 10%. For a jewellery retailer, that’s like finding a flawless diamond in a sea of cubic zirconia.
Valuation
The stock trades at a P/E of 30.7, which is half Titan’s 89 and a third of Kalyan’s 86.9. Here’s a quick valuation check:
- P/E Method:
EPS FY25 = ₹54.8, apply sector average P/E 40 → ₹2,192 - EV/EBITDA Method:
EBITDA FY25 = ₹189 crore, apply EV/EBITDA 20 → EV ₹3,780 crore → Per share ≈ ₹1,850 - DCF (quick and dirty):
Growth 20%, WACC 10% → Fair value ≈ ₹1,900
Fair Value Range: ₹1,800–₹2,200
What’s Cooking – News, Triggers, Drama
- Opening new showrooms beyond Ratlam’s comfort zone
- Rising demand for premium diamond jewellery
- Windmill expansion? Probably not, but it sounds cool in presentations
- Margins improving thanks to better product mix and pricing power
Balance Sheet
| Assets | ₹ Cr |
|---|---|
| Total Assets | 837 |
| Net Worth | 404 |
| Borrowings | 169 |
| Liabilities | 265 |
Auditor Roast: Liabilities are growing like Bollywood star kids on Instagram – visible, but not alarming. Debt is manageable, and reserves have doubled in two years. Solid.
Cash Flow – Sab Number Game Hai
| Year | Ops | Investing | Financing |
|---|---|---|---|
| FY23 | ₹61 Cr | -₹1 Cr | -₹60 Cr |
| FY24 | ₹0 Cr | -₹4 Cr | ₹28 Cr |
| FY25 | -₹19 Cr | -₹27 Cr | ₹40 Cr |
Auditor Remark: Cash flow is moody – one year it’s there, next year it ghosts you. Needs consistency.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 35% |
| ROCE | 33.6% |
| P/E | 30.7 |
| PAT Margin | 6.5% |
| D/E | 0.42 |
Takeaway: These ratios are sexier than a Bollywood award night outfit – all glitter, no tears.
P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹1,971 Cr | ₹79 Cr | ₹45 Cr |
| FY24 | ₹2,337 Cr | ₹103 Cr | ₹62 Cr |
| FY25 | ₹3,311 Cr | ₹173 Cr | ₹113 Cr |
Comment: Revenue and profits growing like startup valuations in 2021. Impressive.
Peer Comparison
| Company | Revenue (₹Cr) | PAT (₹Cr) | P/E |
|---|---|---|---|
| Titan | 60,456 | 3,336 | 89 |
| Kalyan | 25,045 | 714 | 87 |
| P N Gadgil | 7,586 | 219 | 36 |
| D.P. Abhushan | 3,346 | 124 | 31 |
Comment: Cheap compared to Titan/Kalyan, but offers better growth runway.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 75% (unchanged, control intact)
- FII/DII: negligible (they’ll come later when price doubles)
- Public: 25%
Promoters are Ratlam’s royalty in jewellery. No big IPO drama, no shady pledges – clean.
EduInvesting Verdict™
D.P. Abhushan is the classic underdog story – from a Ratlam shop to a ₹3,800 crore market cap gem. Its fundamentals sparkle: high growth, strong margins, and promoters with skin in the game. However, smallcap jewellery is a risky playground – any gold price shock, regulatory hiccup, or festive slowdown could dull the shine.
SWOT
- Strengths: Strong ROE, rapid growth, promoter-driven.
- Weaknesses: Low cash flow consistency, high valuation risk.
- Opportunities: Expansion beyond MP, diamond jewellery boom.
- Threats: Gold price volatility, competition from big brands.
Final Word: A shiny stock that’s still affordable compared to Titan. Just remember – jewellery stocks can glitter, but they can also blindside you.
Written by EduInvesting Team | 29 July 2025SEO Tags: D.P. Abhushan, Jewellery Stocks, Q1 FY26 Results
