Current Rating Overview
MarketsMOJO currently assigns Shukra Jewellery Ltd a 'Sell' rating, reflecting a cautious stance on the stock. This rating indicates that the stock is expected to underperform relative to the broader market or its sector peers in the near to medium term. Investors should consider this recommendation as a signal to evaluate the risks carefully before committing capital.
Understanding the Rating Date and Data Context
It is important to note that while the rating was last updated on 17 Nov 2025, all fundamentals, returns, and financial metrics presented here are as of 26 December 2025. This distinction ensures that investors are analysing the most recent data, rather than relying solely on the conditions prevailing at the time of the rating change.
Here’s How the Stock Looks Today
As of 26 December 2025, Shukra Jewellery Ltd’s Mojo Score stands at 37.0, placing it firmly in the 'Sell' category. This score reflects a combination of factors including quality, valuation, financial trend, and technical indicators. The company’s market capitalisation remains in the microcap segment, operating within the Gems, Jewellery and Watches sector.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Quality Assessment
The quality grade for Shukra Jewellery Ltd is below average, signalling challenges in the company’s operational and profitability metrics. The latest data shows a weak long-term fundamental strength, with a compound annual growth rate (CAGR) in operating profits of -13.30% over the past five years. This negative growth trend highlights difficulties in sustaining earnings momentum.
Additionally, the company’s ability to service debt remains weak, as evidenced by an average EBIT to interest ratio of just 0.57. This suggests that earnings before interest and taxes are insufficient to comfortably cover interest expenses, raising concerns about financial stability. The return on equity (ROE) averages a modest 1.28%, indicating low profitability relative to shareholders’ funds.
Valuation Perspective
Despite the quality concerns, Shukra Jewellery Ltd’s valuation grade is very attractive. This implies that the stock is trading at a price level that may offer value relative to its earnings, assets, or cash flows. For value-oriented investors, this could represent a potential opportunity, provided the company can address its fundamental weaknesses.
Financial Trend Analysis
The financial grade is positive, reflecting some encouraging signs in recent financial performance or balance sheet metrics. However, this positive trend is tempered by the company’s overall weak profitability and debt servicing capacity. Investors should weigh these mixed signals carefully, recognising that while some financial indicators show improvement, underlying challenges persist.
Technical Indicators
From a technical standpoint, the stock is mildly bearish. This suggests that recent price movements and chart patterns indicate downward pressure or limited upside momentum. The stock’s price performance over various time frames corroborates this view: as of 26 December 2025, the stock has delivered a 1-day gain of 4.95% and a 1-week gain of 10.13%, but has declined by 20.52% over the past month and 48.88% over the last year. This volatility and negative longer-term trend reinforce the cautious technical outlook.
Comparative Market Performance
Shukra Jewellery Ltd has significantly underperformed the broader market benchmark. While the BSE500 index has generated a positive return of 5.76% over the past year, the stock has declined by nearly 49%. This divergence highlights the stock’s relative weakness and the challenges it faces within its sector and the wider market environment.
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What This Rating Means for Investors
The 'Sell' rating on Shukra Jewellery Ltd suggests that investors should exercise caution. The combination of below-average quality, attractive valuation, positive but limited financial trends, and mildly bearish technicals indicates that the stock may face headwinds in the near term. Investors should consider the risks of continued underperformance and the company’s weak fundamental position before adding or holding this stock in their portfolios.
For those already invested, this rating may prompt a review of portfolio exposure and risk tolerance. For potential investors, it signals the need for thorough due diligence and consideration of alternative opportunities with stronger fundamentals and technical momentum.
Summary
In summary, Shukra Jewellery Ltd’s current 'Sell' rating reflects a nuanced picture. While valuation appears attractive, the company’s weak profitability, poor debt servicing ability, and negative long-term growth trend weigh heavily on its outlook. The stock’s recent price volatility and underperformance relative to the market further justify a cautious stance. Investors should monitor developments closely and consider these factors in their investment decisions.
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