Revenue and Profitability Trends
Over the seven-year period ending March 2025, Banaras Beads’ net sales have shown a commendable upward trend, rising from ₹17.31 crores in 2019 to ₹31.56 crores in 2025. Despite a dip in 2020, likely influenced by broader economic disruptions, the company rebounded strongly, with sales increasing year-on-year since 2021. This growth reflects the company’s ability to expand its market presence and product demand.
Operating profit margins, excluding other income, have fluctuated but remained robust, averaging around 13% in recent years. The margin dipped to 9.39% in 2024 but recovered to 13.05% in 2025, indicating effective cost management and operational efficiency. Gross profit margins have been relatively stable, hovering near 17%, though they were higher in earlier years, peaking above 22% in 2021.
Profit after tax (PAT) margins have also improved significantly, rising from 6.7% in 2019 to nearly 9.8% in 2025. The company’s PAT increased from ₹1.16 crores in 2019 to ₹3.09 crores in 2025, underscoring consistent bottom-line growth. Earnings per share (EPS) followed a similar pattern, more than doubling from 1.75 in 2019 to 4.67 in 2025, reflecting enhanced shareholder value.
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Cost Structure and Expenditure Analysis
The company’s cost of raw materials has increased in line with sales growth, rising from ₹6.54 crores in 2019 to ₹14.15 crores in 2025. Notably, the increase or decrease in stocks has shown variability, with significant negative values in recent years, indicating inventory build-up or adjustments. Employee costs have steadily increased, reflecting possible expansion or wage inflation, reaching ₹5.68 crores in 2025.
Other expenses have also risen, from ₹4.18 crores in 2019 to ₹9.70 crores in 2025, which may include administrative and operational overheads. Despite these rising costs, the company has maintained a positive operating profit, supported by other income that contributed nearly ₹2 crores in 2025.
Balance Sheet and Financial Position
Banaras Beads’ balance sheet reveals a strengthening financial position. Shareholders’ funds have grown from ₹47.66 crores in 2020 to ₹55.84 crores in 2025, supported by increasing reserves. The company has maintained a zero long-term borrowing position throughout, indicating a debt-free long-term capital structure. However, short-term borrowings have increased notably to ₹8.58 crores in 2025, up from negligible levels in earlier years, suggesting a reliance on working capital financing.
On the asset side, total assets have expanded from ₹49.82 crores in 2020 to ₹66.59 crores in 2025. Inventories have nearly doubled over this period, reaching ₹26.33 crores, which aligns with the company’s growing scale of operations. Cash and bank balances have fluctuated, with a notable decline to ₹2.97 crores in 2025 from a peak of nearly ₹12 crores in 2022, reflecting changes in liquidity management.
Book value per share has steadily increased from ₹72.06 in 2020 to ₹84.43 in 2025, signalling enhanced net asset value for shareholders.
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Cash Flow and Liquidity Overview
Cash flow from operating activities has been volatile, with negative cash flows recorded in several years, including a significant outflow of ₹9 crores in 2021. However, 2025 saw a positive operating cash flow of ₹4 crores, indicating improved operational cash generation. Investing activities have varied widely, with a substantial outflow of ₹17 crores in 2025, likely reflecting capital expenditure or investments.
Financing activities have also fluctuated, with inflows of ₹3 crores in 2025 after previous years of mixed activity. The net cash position has seen swings, ending with a decline of ₹9 crores in 2025. Despite these fluctuations, the company maintains a reasonable liquidity position, supported by current assets exceeding ₹35 crores in 2025.
Conclusion
Banaras Beads has exhibited steady growth in sales and profitability over the past several years, supported by a solid balance sheet and improving earnings per share. While the company has managed costs effectively to maintain healthy margins, recent increases in short-term borrowings and inventory levels warrant close monitoring. Cash flow volatility suggests the need for prudent liquidity management going forward. Overall, the historical performance reflects a resilient business with potential for continued expansion in the Gems, Jewellery and Watches sector.
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