At a Glance

Parshva Enterprises, a micro-cap diamond trader with the glamour of a solitaire but the earnings of a cubic zirconia, reported Q1 FY26 revenue of ₹6.16 crore and a wafer-thin net profit of ₹0.08 crore. The stock sits at ₹215 with a comically high P/E of 913, proving investors love shiny things even when fundamentals scream “meh.” Promoter holding is a rock-solid 74.6%, but with ROE at 1.7% and OPM stuck at 2%, this diamond is still in the rough.

Introduction

Diamonds may be forever, but Parshva’s profits are fleeting. The company, based in Mumbai, cuts, polishes, and sells diamonds, supplying to wholesalers and retailers across India. While the business sounds glamorous, the financials are more like a Bollywood flop – big marketing, tiny box office collections.

Over five years, revenue has grown (20% CAGR), but profits have flatlined, and margins hover near 2%. The company is almost debt-free, which is great, but the market cap of ₹219 crore on such tiny profits? That’s investors betting on hope, not math.

Business Model (WTF Do They Even Do?)

Parshva Enterprises deals in diamond trading and jewellery manufacturing. They buy rough diamonds, polish them, and sell to retailers and traders. This is a volume game with razor-thin margins, and unless you’re De Beers, it’s a tough business. Their strength is a quick inventory turnover, but with no brand pull and intense competition, pricing power is zero.

Financials Overview

Q1 FY26 Snapshot:

• Revenue: ₹6.16 crore (flat YoY)
• EBITDA: ₹0.13 crore (margin 2.1%)
• Net Profit: ₹0.08 crore (flat YoY)
• EPS: ₹0.08

Annual revenue FY25 was ₹25.3 crore, with net profit ₹0.24 crore – margins so low they need a magnifying glass. The company survives but doesn’t thrive.

Valuation

Trading at P/E 913, Parshva is priced like it’s about to invent lab-grown diamonds that cure cancer.

1. P/E Method:
   EPS FY25 = ₹0.24, apply fair P/E 25 → ₹6
2. EV/EBITDA Method:
   EBITDA FY25 = ₹0.55 crore, apply EV/EBITDA 10 → EV ₹5.5 crore → Per share ≈ ₹5
3. DCF (quick):
   Growth 5%, WACC 10% → Fair Value ≈ ₹8

Fair Value Range: ₹5–₹10 (yes, way below current price)

What’s Cooking – News, Triggers, Drama

• Debt-free: Always a plus, but when profits are minuscule, it barely matters.
• Improved debtor days: From 116 to 42 – good for cash flow.
• No expansion news: Business remains stagnant.
• Speculative buzz: Stock movement driven by sentiment, not earnings.

Balance Sheet

Auditor Roast: Almost debt-free, but reserves are tiny. Assets mostly inventory and receivables – liquidity risk remains.

Cash Flow – Sab Number Game Hai

Comment: Operating cash flow is positive, but investments drain it fast.

Ratios – Sexy or Stressy?

Takeaway: These ratios are not sexy; they’re a financial horror movie.

P&L Breakdown – Show Me the Money

Comment: Revenue growing, profits stagnant. Margins are allergic to growth.

Peer Comparison

Comment: Parshva’s valuation is absurd compared to peers.

Miscellaneous – Shareholding, Promoters

• Promoter Holding: 74.6% (stable)
• FII/DII: none
• Public: 25.4%

Promoters hold tight, public plays the greater fool game.

EduInvesting Verdict™

Parshva Enterprises is a microcap stock priced like a unicorn. The business is stable but unremarkable – margins are paper-thin, growth is negligible, and valuations are in outer space. Debt-free status and promoter skin in the game are positives, but fundamentals don’t justify the price.

SWOT

• Strengths: Debt-free, stable trading network.
• Weaknesses: Ultra-low margins, negligible profits.
• Opportunities: Scaling up exports, branding.
• Threats: Price crashes, demand fluctuations.

Final Word: A speculative play, not an investment. This diamond may glitter on the ticker but lacks intrinsic shine.

Written by EduInvesting Team | 29 July 2025
SEO Tags: Parshva Enterprises, Diamond Trading, Q1 FY26 Results