Synopsis: Through a postal ballot that closed June 11, 2026, shareholders of Divine Hira Jewellers Limited approved a 2:1 bonus equity issue and a hike in authorised share capital, both passing with 100 percent of valid votes in favour; the NSE SME-listed gold jewellery company’s shares have risen over 550 percent in the past year and carry a P/E of 69.7 on sub-2 percent operating margins.
A unanimous shareholder vote on a bonus issue is not always the headline in isolation but for a company incorporated in 2022, trading at nearly 70 times earnings after a 554 percent one-year stock run, the context behind the approval matters. Via a postal ballot whose e-voting window closed on June 11, 2026, shareholders of the NSE SME-listed gold jewellery company cleared two connected resolutions: an expansion of authorised share capital and a 2:1 bonus equity issue by capitalisation of free reserves.
With a market capitalisation of Rs. 415.55 crore, the shares of Divine Hira Jewellers Limited were last trading at Rs. 318.50 per share, down 0.78 percent from its previous closing price of Rs. 321 apiece. It is trading at a P/E of 58.78.
Bonus Issue Update
Shareholders approved two resolutions. The first increases authorised share capital from Rs.15 crore to Rs.39.50 crore a structural prerequisite for the bonus. The second authorises the issue of new equity shares in a 2:1 ratio by capitalising free reserves and the securities premium account, meaning existing shareholders receive two additional shares for every one currently held.
The sizing of the capital expansion is precise: at a face value of Rs.10, the existing paid-up equity of Rs.13 crore would triple to Rs.39 crore post-issue, fitting within the new ceiling of Rs.39.50 crore with minimal headroom. Both resolutions passed with 100 percent of valid votes in favour. Promoters, holding 72.7 percent of the equity, voted their entire stake in favour; public non-institutional shareholders who participated in 53.74 percent of the public float also voted unanimously for both resolutions.
A 2:1 bonus does not alter underlying company value. Post-issuance, the share price typically adjusts downward proportionally at the current last-traded price of Rs.330, the theoretical ex-bonus price would be around Rs.110. Whether the market sustains any premium above that level will turn on earnings, not the bonus itself.
A Rapid Rise, Paper-Thin Margins
Divine Hira Jewellers’ stock has appreciated approximately 480 percent over the past twelve months, taking market capitalization to Rs.431 crore on a revenue of Rs.884 crore. The revenue growth itself is real: the company went from Rs.183 crore in FY24 to Rs.359 crore in FY25 to Rs.884 crore in FY26, a pace unusual even in gold wholesale. However, operating margins in that trade are structurally thin, and Divine Hira is not an outlier: OPM has hovered at 1–2 percent across recent reporting periods, producing a PAT of approximately Rs.7 crore on nearly three-quarters of a billion rupees in turnover.
At a P/E of 59.78 times, the market is pricing in either a meaningful shift in profitability or a sustained expansion of the top line at improving margins, neither of which is evidenced in the numbers so far.
One data point that sits uneasily with the stock’s trajectory: the number of shareholders on record has fallen from 2,006 in March 2025 to just 524 by March 2026. Promoter holding has held firm at 72.7 percent throughout, and FII and DII positions have ticked modestly higher. The concentration of shares into fewer hands, even as the price has multiplied, is a pattern that warrants scrutiny. On the operating side, the cash conversion cycle has improved meaningfully from 65 days in FY23 to 30 days in FY26 and free cash flow, which was negative through FY24, turned marginally positive in FY25.
Business Overview
Divine Hira Jewellers Limited was incorporated in July 2022 and operates from Zaveri Bazar, Mumbai, in the design and marketing of premium 22-karat gold jewellery. The company serves wholesalers, showrooms, and retailers with handcrafted and machine-made jewellery alongside bullion, silver articles, and coins.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
