A jewellery stock under Rs.10, witnessed an 8 percent surge in its stock price after securing a significant domestic order worth approximately Rs.11 crores. The order involves the supply of gold jewellery to prominent regional and national retail chains and is expected to be executed within 90 days.
Share Price Movement
During Tuesday’s trading session, the share price of Ashapuri Gold Ornament Ltd reached an intra-day high of Rs.7.00 per share, rising 8.2 percent from its previous closing price of Rs.6.47 apiece. The share has retreated since then and is trading at Rs.6.64 apiece.
What happened
Ashapuri Gold Ornament Ltd has secured a significant domestic order valued at approximately Rs.11 crores for the supply of gold jewellery. This order comes from a group of prominent regional and national jewellery retail chains, including several leading big-box jewellers.
As per the terms, the company will be responsible for delivering a range of gold ornaments, with execution scheduled to be completed within 90 days. This development highlights Ashapuri Gold Ornament Ltd’s growing presence in the organised jewellery supply segment and its continued engagement with key players in the retail market.
Financial Performance
Ashapuri Gold Ornament Ltd reported strong financial performance in Q3 FY25, with revenue rising 103 percent year-on-year to Rs.101.45 crore, up from Rs.49.97 crore in Q3 FY24. The company also witnessed a 102 percent surge in net profit, which climbed to Rs.4.19 crore from Rs.2.08 crore in the corresponding period last year. This growth was driven by robust demand for its digital transformation solutions across global markets.
Accounting Ratios
The company has a Return on Capital Employed (ROCE) of 10.39 percent and a Return on Equity (ROE) of 10.39 percent. Its Price-to-Earnings (P/E) ratio stands at 16.18, lower than the industry average of 31.46. Furthermore, the company maintains a current ratio of 21.88, a debt-to-equity ratio of 0.06, and an Earnings Per Share (EPS) of Rs.0.4.
Competitive Landscape
Ashapuri Gold Ornament Ltd operates in a competitive jewellery market alongside players like Titan (Tanishq), Kalyan Jewellers, Rajesh Exports, and Senco Gold. While Titan and Kalyan lead in organised retail, Rajesh Exports and Goldiam focus on international markets. Regional brands such as Senco Gold and Thangamayil cater to traditional preferences. Ashapuri competes by offering hallmark-certified products and leveraging its wholesale expertise.
About the Company
Ashapuri Gold Ornament Ltd. is engaged in the manufacturing and trading of gold jewellery, offering a wide range of products such as bracelets, necklaces, earrings, bangles, finger rings, and antique pieces. All its offerings are hallmark-certified, ensuring high quality and authenticity. The company serves both domestic and international markets and operates a spacious 2,945 sq. ft. showroom located in Ahmedabad.
Written by – Siddesh S Raskar
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