Recent Price Movement and Market Context
The stock has been on a losing streak for the past four consecutive trading sessions, resulting in a cumulative decline of 16.48% over this period. Today’s fall to Rs.2.93 represents the lowest price level for Deep Diamond India Ltd in the last year, a stark contrast to its 52-week high of Rs.10.29. This decline has outpaced the Gems, Jewellery And Watches sector’s performance, with the stock underperforming the sector by 2.55% on the day.
In comparison, the broader market benchmark, the Sensex, opened flat but later declined by 329.60 points, or 0.43%, closing at 81,890.88. While the Sensex is trading below its 50-day moving average, it remains above its 200-day moving average, indicating mixed market momentum. Deep Diamond India Ltd, however, is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the stock’s weak technical position.
Financial Performance and Valuation Metrics
Over the past year, Deep Diamond India Ltd has delivered a negative return of 31.37%, significantly lagging the Sensex’s positive 9.76% gain. Despite this, the company reported a notable increase in profits, with a 589% rise over the same period. The latest quarterly profit after tax (PAT) stood at Rs.3.04 crore, while the half-year return on capital employed (ROCE) reached a high of 15.30%, indicating pockets of operational efficiency.
However, the company’s long-term fundamental strength remains subdued. Its average return on equity (ROE) is 7.89%, which is modest relative to industry standards. The ability to service debt is also constrained, with an average EBIT to interest ratio of 1.26, signalling limited coverage of interest expenses by earnings before interest and tax.
Valuation metrics further highlight challenges. The stock trades at a price-to-book value of 1.7, which is considered expensive given its financial profile. This valuation is higher than the average historical valuations of its peers, despite the stock currently trading at a discount. The price-earnings-to-growth (PEG) ratio is reported as zero, reflecting the disconnect between earnings growth and market valuation.
Our latest monthly pick, this Small Cap from Oil Exploration/Refineries, is showing strong performance since announcement! See why our Investment Committee chose it after screening 50+ candidates.
- - Investment Committee approved
- - 50+ candidates screened
- - Strong post-announcement performance
Comparative Performance and Market Position
Deep Diamond India Ltd has consistently underperformed its benchmark indices over the last three years. The stock’s annual returns have lagged behind the BSE500 index in each of the past three annual periods, reflecting persistent challenges in maintaining competitive performance. The company’s Mojo Score stands at 22.0, with a Mojo Grade of Strong Sell as of 12 December 2025, an upgrade from a previous Sell rating. This grading reflects the stock’s weak fundamentals and valuation concerns.
Market capitalisation metrics also indicate limited scale, with a Market Cap Grade of 4, suggesting the company is relatively small compared to larger peers in the Gems, Jewellery And Watches sector. The stock offers a dividend yield of 3.25% at the current price, which is relatively high and may provide some income cushion despite the price decline.
Shareholding and Ownership Structure
The majority of Deep Diamond India Ltd’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The absence of significant institutional ownership could impact the stock’s market behaviour and responsiveness to broader sector trends.
Is Deep Diamond India Ltd your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- - Better alternatives suggested
- - Cross-sector comparison
- - Portfolio optimization tool
Summary of Key Metrics
To summarise, Deep Diamond India Ltd’s stock has reached a new 52-week low of Rs.2.93, reflecting a sustained period of price weakness. The stock’s underperformance relative to the sector and benchmark indices, combined with its valuation and financial ratios, highlight ongoing challenges. While the company has demonstrated profit growth and improved ROCE in recent periods, these factors have not translated into positive market sentiment or price momentum.
The stock’s trading below all major moving averages and its Strong Sell Mojo Grade underscore the cautious stance reflected in its market valuation. Investors analysing the Gems, Jewellery And Watches sector will note the divergence between the company’s operational results and its market performance over the past year.
Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today
