EduInvesting.in | May 12, 2025
Move over, Titan — there’s a new gold kid on the block, and it’s not here to play dress-up. While the big players were busy showing off their premium collections and diamond-studded balance sheets, RBZ Jewellers just dropped a financial statement with more shine than your Diwali sherwani.
Let’s decode the FY25 results that are making investors (and maybe even some gold smugglers) take notice.
The Numbers: RBZ Goes Full Gold Mode
For the financial year ending March 31, 2025, here’s what RBZ served:
| Particulars | FY25 (₹ in Cr) | FY24 (₹ in Cr) | YoY Growth |
|---|---|---|---|
| Revenue from Operations | 536.15 | 327.44 | +63.7% |
| Total Income | 536.26 | 327.82 | +63.6% |
| Total Expenses | 473.44 | 308.17 | +53.6% |
| Profit Before Tax (PBT) | 52.51 | 29.62 | +77.3% |
| Profit After Tax (PAT) | 38.80 | 21.57 | +79.8% |
| EPS (Basic & Diluted) | ₹9.70 | ₹5.39 | — |
RBZ didn’t just polish its showroom; it polished its books too.
CMP Check: Is There Glitter in the Valuation?
- Current Market Price (CMP): ₹136
- Earnings per Share (EPS): ₹9.70
- Trailing P/E Ratio: 14.02x
Now here’s where things get spicy. For a company growing profits at nearly 80%, a P/E of just 14 is like buying gold at ₹40,000 while everyone else pays ₹70,000 and thanks the shopkeeper.
Fair Value: Let’s Bring Out the Math Toys
Using a basic valuation range based on potential P/E multiples:
| Assumed P/E | Fair Value (₹) |
|---|---|
| 12x | ₹116.40 |
| 15x | ₹145.50 |
| 20x | ₹194.00 |
So at ₹136, RBZ is still below its moderate fair value, and nowhere near overvalued. If market sentiment and growth sustain, this stock could easily move toward ₹175–₹200 over the next 12–18 months.
Wait, What Even Is RBZ Jewellers?
For the uninitiated: RBZ Jewellers Ltd, formerly known as RBZ Jewellers Pvt. Ltd., is a prominent player in the plain gold jewellery segment. While the big boys are busy flaunting temple jewellery and bridal collections, RBZ’s strength lies in mass-market gold jewellery, which sees consistent demand regardless of whether Sensex hits 80,000 or your neighbor’s wedding gets cancelled again.
They’re also based in Ahmedabad, and if you know anything about Gujarati business sense, that alone adds a few points to the credibility score.
Margins and Moats: Is This a Goldmine or Just Glitter?
Let’s talk EBITDA and margin expansion — because revenue is vanity, but profit is sanity.
- With revenues up 64% but expenses rising only 54%, RBZ is scaling efficiently.
- That’s operating leverage 101. It means every extra rupee earned is costing them less — a dream scenario for any investor.
They also have:
- Low finance costs (₹7.61 Cr for the year)
- Consistent EPS growth
- Minimal depreciation and amortization
RBZ has clearly focused on lean operations. No “we bought an Italian office” surprises here.
Should Titan Be Worried?
Not exactly. Titan operates in the premium space and has massive brand power. But RBZ isn’t trying to be Titan. It’s going after volume-based, value-conscious gold buyers — the real India.
Think D-Mart of Jewellery, not Gucci.
That makes it a fabulous hedge or supplement to Titan in your portfolio. One gives you brand, the other gives you margin.
Risks? Of Course. It’s Gold, Not God.
- Gold price volatility could impact demand.
- Plain gold margins are lower than designer jewellery.
- Any regulatory clampdowns on bullion imports may hit operations.
- Liquidity might be an issue — it’s not the most actively traded stock.
Final Verdict:
“RBZ isn’t just a jeweller — it’s a silent compounder in disguise. It may not make headlines with celebrity endorsements, but it makes numbers that matter. With EPS at ₹9.70 and CMP of ₹136, it’s trading at a sweet P/E of 14 — fair enough for value investors, and tempting enough for momentum players.”
EduInvesting Investor Spice Rating: 4.2/5 Masala Stars
Buy zone: ₹120–135
Target zone: ₹175–195
Stop loss (fundamental): EPS decline or revenue fall for 2 quarters
Special Tip: Keep an eye on Q1 FY26. If growth momentum continues, this stock may soon need a valuation upgrade.
