The shares of this microcap company surged around 15 percent in Friday’s trading session after reporting an increase in net profits by 8,829 percent QoQ. The stock has delivered more than a 30 percent return to its shareholders in one year.
Price Movement:
With a market capitalization of Rs. 68.3 crores, the shares of Swarnsarita Jewels India Ltd started Friday’s trading session on a higher note at Rs. 34.23, gaining around 15 percent compared to its previous close of Rs. 29.29 and are currently trading at Rs. 32.55 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company announced its Q1FY25 results. Quarterly, the revenue decreased by around 9 percent from Rs. 171.25 crores during the March quarter to Rs. 155.1 crores in the June quarter. Contrastingly, the net profits magnified by 8,829 percent from Rs. 7 lakhs to Rs. 6.25 crores during the same timeframe.
Comparing the same metrics on a YoY basis, the revenue declined by around 20 percent from Rs. 194.31 crores during Q1FY24 to Rs. 155.1 crores in Q1FY25. On the other hand, the net profits jumped by 12 percent from Rs. 5.58 crores to Rs. 6.25 crores during the same period.
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Products and Services:
Swarnsarita specializes in luxury gold and diamond jewellery, serving a wide range of clients both in India and abroad. They also provide customized jewellery options upon special request.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 3.90 percent and a return on capital employed (RoCE) of 11.52 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 0.62 percent.
Furthermore, Swarnsarita Jewels India’s financials show a consistently decreasing debt-equity ratio over the past three years. This trend indicates that the company has been progressively reducing its borrowing relative to its equity capital.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters maintain ownership of 52.03 percent. The remaining 47.96 percent of shares are held by Retail Investors.
Company Profile:
Incorporated in 2005, Swarnsarita Jewels India Ltd is a manufacturer, wholesaler and retailer of Gold and Diamond Jewelry.
Written By Vaibhav Patil
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