Market Performance and Price Trends
Gautam Gems Ltd’s stock has exhibited a downward trajectory over multiple time horizons. The one-year performance shows a decline of 21.90%, starkly contrasting with the Sensex’s positive return of 8.12% over the same period. The trend extends further back, with a three-year loss of 84.03% against the Sensex’s 38.32% gain, and a five-year drop of 89.22% compared to the benchmark’s 75.07% rise. Notably, the stock has failed to register any appreciable gains over the past decade, remaining flat at 0.00%, while the Sensex surged by 235.38%.
In the short term, Gautam Gems has marginally outperformed its sector and the Sensex on specific days and weeks, with a 0.86% gain today versus the Sensex’s 0.25%, and a 3.22% rise over the past week compared to the Sensex’s 0.19%. However, these gains are overshadowed by monthly and quarterly declines of 10.18% and 11.75% respectively, which are significantly worse than the Sensex’s corresponding losses of 3.50% and 3.03%.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating persistent bearish momentum.
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Financial Health and Profitability Metrics
The company’s financial indicators reveal ongoing difficulties in generating sustainable profitability and servicing debt. Operating profits have contracted at a compound annual growth rate (CAGR) of -14.96% over the last five years, signalling weakening core earnings capacity. This decline is further reflected in a 24% drop in profits over the past year.
Return on Equity (ROE) averages a modest 2.68%, indicating limited profitability relative to shareholders’ funds. Similarly, the Return on Capital Employed (ROCE) stands at 1.4%, a figure that, while low, contributes to the stock’s valuation appeal.
Debt servicing ability is constrained, with an average EBIT to interest coverage ratio of 0.86, suggesting that earnings before interest and tax are insufficient to comfortably cover interest expenses. This ratio points to financial stress in meeting fixed obligations.
Valuation and Market Capitalisation
Despite the challenges, Gautam Gems Ltd’s valuation metrics indicate a very attractive entry point relative to its capital employed. The enterprise value to capital employed ratio is a low 0.3, signalling that the market values the company at a significant discount compared to its peers’ historical averages.
The company holds a Market Cap Grade of 4, reflecting its micro-cap status within the Gems, Jewellery And Watches sector. Majority shareholding remains with non-institutional investors, which may influence liquidity and trading dynamics.
Sector and Benchmark Comparison
Gautam Gems Ltd has consistently underperformed the BSE500 index across the last three annual periods. Its year-to-date return of -8.79% also lags behind the Sensex’s -3.70% performance. This persistent underperformance highlights the stock’s relative weakness within its sector and the broader market.
The company’s Mojo Score currently stands at 26.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 21 Jan 2026. This grading reflects a comprehensive assessment of the company’s fundamentals, momentum, and valuation, signalling caution for market participants.
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Recent Financial Results
The company reported flat results in the quarter ending September 2025, indicating a lack of growth momentum in the near term. This stagnation compounds the longer-term trend of declining profitability and market valuation.
Given the stock’s current trading levels below all major moving averages and its sustained negative returns, Gautam Gems Ltd remains positioned at a significant low point in its market history.
Summary of Key Metrics
To encapsulate, Gautam Gems Ltd’s key financial and market metrics as of 28 Jan 2026 are:
- Mojo Score: 26.0 (Strong Sell, upgraded from Sell on 21 Jan 2026)
- Market Cap Grade: 4 (Micro-cap)
- Operating Profit CAGR (5 years): -14.96%
- EBIT to Interest Coverage Ratio (avg): 0.86
- Return on Equity (avg): 2.68%
- Return on Capital Employed: 1.4%
- Enterprise Value to Capital Employed: 0.3
- 1 Year Stock Return: -21.90%
- 3 Year Stock Return: -84.03%
- 5 Year Stock Return: -89.22%
- 10 Year Stock Return: 0.00%
These figures collectively illustrate the stock’s current valuation and performance challenges within the Gems, Jewellery And Watches sector.
Conclusion
Gautam Gems Ltd’s stock reaching an all-time low is a reflection of its prolonged underperformance relative to market benchmarks and peers. The company’s financial indicators reveal subdued profitability, constrained debt servicing capacity, and declining operating profits over recent years. While valuation metrics suggest the stock trades at a discount, the overall market context and fundamental data underscore the severity of its current position.
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