Stock Price Movement and Market Context
On 30 Jan 2026, Gautam Gems Ltd’s share price fell to Rs.3.01, its lowest level in the past year and an all-time low for the company. This decline represents a day change of -3.43%, underperforming its sector by -3.68%. The stock has been on a downward trajectory for two consecutive days, losing -6.37% over this period. Notably, the share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
The broader market context reveals a cautious environment, with the Sensex opening lower at 81,947.31, down by 619.06 points (-0.75%) and currently trading at 82,051.09 (-0.62%). The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed signals for the broader market.
Comparative Performance Over One Year
Over the past year, Gautam Gems Ltd has delivered a return of -24.55%, significantly lagging behind the Sensex, which posted a positive return of 6.88% during the same period. This consistent underperformance extends beyond the last year, with the stock also trailing the BSE500 index in each of the previous three annual periods. The 52-week high for the stock was Rs.5.35, highlighting the steep decline to the current low.
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Financial and Fundamental Analysis
Gautam Gems Ltd’s financial metrics reveal several areas of concern that have contributed to the stock’s decline. The company has exhibited weak long-term fundamental strength, with a compound annual growth rate (CAGR) of operating profits declining by -14.96% over the last five years. This negative growth trend has weighed heavily on investor sentiment and valuation.
The company’s ability to service its debt is also under pressure, as indicated by a poor average EBIT to interest ratio of 0.86. This ratio suggests that earnings before interest and taxes are insufficient to comfortably cover interest expenses, raising questions about financial stability.
Profitability metrics further highlight challenges, with an average return on equity (ROE) of just 2.68%, signalling low profitability generated per unit of shareholders’ funds. Additionally, the return on capital employed (ROCE) stands at 1.4%, which, while low, contributes to the company’s valuation metrics.
Despite these challenges, Gautam Gems Ltd’s valuation appears very attractive on certain parameters. The enterprise value to capital employed ratio is a modest 0.3, indicating that the stock is trading at a discount relative to its capital base. This valuation is lower than the average historical valuations of its peers in the Gems, Jewellery And Watches sector.
Shareholding and Promoter Pledge Impact
Another factor exerting downward pressure on the stock price is the high level of promoter share pledging. Currently, 57.93% of promoter shares are pledged, which can create additional selling pressure in falling markets as lenders may seek to liquidate pledged shares to cover margin calls. This dynamic has likely contributed to the stock’s recent declines and heightened volatility.
Recent Financial Results
The company reported flat financial results in the quarter ended September 2025, which did not provide any significant positive catalyst for the stock. Profitability fell by approximately -24% over the past year, aligning with the stock’s negative return of -24.55% during the same period. This correlation between earnings decline and share price performance underscores the challenges faced by Gautam Gems Ltd.
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Mojo Score and Market Capitalisation
Gautam Gems Ltd currently holds a Mojo Score of 26.0, reflecting its overall weak performance and fundamentals. The company’s Mojo Grade was downgraded from Sell to Strong Sell on 21 Jan 2026, signalling a deteriorated outlook based on MarketsMOJO’s comprehensive evaluation. The stock’s market capitalisation grade stands at 4, indicating a relatively small market cap within its sector.
Summary of Key Metrics
To summarise, Gautam Gems Ltd’s key financial and market metrics as of 30 Jan 2026 are:
- New 52-week and all-time low price: Rs.3.01
- Day change: -3.43%
- One-year return: -24.55%
- Sector underperformance: -3.68% today
- Operating profit CAGR (5 years): -14.96%
- Average EBIT to interest ratio: 0.86
- Average ROE: 2.68%
- ROCE: 1.4%
- Enterprise value to capital employed: 0.3
- Promoter share pledge: 57.93%
The stock’s consistent underperformance against benchmarks and peers, combined with subdued profitability and high promoter pledge levels, have culminated in the current 52-week low price. While valuation metrics suggest the stock is trading at a discount, the fundamental indicators reflect ongoing challenges within the company’s financial health and market positioning.
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