1. At a Glance – The Glitter With a Scratch
At ₹123 per share and a market cap of ₹293 crore, Uday Jewellery Industries Ltd is trading at a P/E of 15.5 — comfortably below the industry median of 22.3. Sounds cheap? Maybe. But let’s polish the gold properly.
Q3 FY26 sales came in at ₹181.34 crore (up a massive 83.3% YoY), yet PAT slipped 5.07% YoY to ₹4.31 crore. OPM? A thin 2.40%. Yes, thinner than your wedding chain.
ROCE stands at 14.2%, ROE at 11.8%, debt-to-equity is a manageable 0.20, and promoters hold a chunky 74.9% with zero pledge.
But here’s the drama:
Revenue is exploding. Profit growth TTM is 91%. Sales growth TTM is 110%.
And yet the stock is down 21% in 3 months and 19% in 1 year.
So what’s going on? Is this a growing jewellery house temporarily polishing margins? Or is the shine hiding something?
Let’s open the locker.
2. Introduction – From Net Trade to Gold Trade
The company began its journey in 1999 under a name that sounds like a failed dot-com startup: Net Trade Innovations Pvt Ltd.
Then came Hifunda.com.
Then Hifunda Ltd.
And finally, in 2011, post takeover, it became Uday Jewellery Industries Ltd.
That’s more name changes than a Bollywood actor reinventing himself.
Today, it trades in CZ and colour stone studded jewellery and manufactures gold jewellery across two Telangana units. Manufacturing capacity has jumped from 20 kg/month to 125 kg/month. That’s not incremental. That’s aggressive scaling.
The Sanghi Group connection matters. They were among the first in South India to introduce the lost-wax casting technique in 1993.
And their clients? Kalyan Jewellers and Malabar Gold. Not exactly small-town showrooms.
So the brand positioning is clear:
Manufacturing muscle + big retail clients + export exposure.
But if they are supplying the giants, why are margins struggling?
Good question. Keep reading.
3. Business Model – WTF Do They Even Do?
In simple language:
They make studded gold jewellery.
They sell it domestically and export it.
And 100% of revenue comes from studded gold jewellery.
No diversification drama. No crypto mining side hustle. Pure jewellery.
