Key Events This Week
2 Feb: Stock opens at Rs.58.00, up 2.20% despite Sensex decline
3 Feb: Q3 FY26 results reveal 39% profit slip QoQ
4 Feb: Positive quarterly growth reported amid margin pressures
6 Feb: Week closes at Rs.57.49, down 1.03% on final day
2 February 2026: Strong Start Despite Broader Market Weakness
Narbada Gems & Jewellery Ltd began the week on a positive note, closing at Rs.58.00, a gain of 2.20% from the previous Friday’s close of Rs.56.75. This rise contrasted with the Sensex, which fell 1.03% to 35,814.09. The stock’s outperformance on a day of market weakness suggested investor interest in the company’s underlying fundamentals, possibly anticipating upcoming quarterly results. Volume was moderate at 532 shares, indicating steady trading activity.
3 February 2026: Q3 FY26 Results Show Profit Decline Amid Revenue Resilience
On 3 February, Narbada Gems & Jewellery released its Q3 FY26 results, revealing a 39% quarter-on-quarter decline in profit despite resilient revenue figures. The stock price edged up slightly by 0.19% to Rs.58.11, reflecting a cautious market response. The Sensex, meanwhile, surged 2.63% to 36,755.96, outperforming the stock on the day. The profit contraction highlighted margin pressures and operational challenges, tempering enthusiasm despite the company’s ability to sustain sales volumes.
4 February 2026: Positive Quarterly Growth Amid Margin Pressures
The company reported positive quarterly growth on 4 February, with net sales rising 21.2% over the last six months to ₹48.67 crores and profit after tax increasing to ₹4.83 crores. However, margin expansion was constrained, and operational metrics such as debtor turnover ratio deteriorated to 3.59 times, signalling slower collections. Cash reserves also dropped to ₹0.08 crores, raising liquidity concerns. The stock closed at Rs.58.84, up 1.26%, while the Sensex gained a modest 0.37% to 36,890.21. This performance indicated investor recognition of revenue growth but caution over margin and liquidity pressures.
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5 February 2026: Profit Taking Amid Market Pullback
The stock experienced a decline of 1.27% to Rs.58.09 on 5 February, reversing some of the prior gains. This drop coincided with a broader market pullback, as the Sensex fell 0.53% to 36,695.11. Trading volume more than doubled to 1,020 shares, suggesting increased selling pressure. The decline reflected investor caution following the mixed quarterly results and ongoing margin pressures, as well as concerns about the company’s liquidity position.
6 February 2026: Week Ends Slightly Lower on Profit Booking
On the final trading day of the week, Narbada Gems & Jewellery closed at Rs.57.49, down 1.03% from the previous day’s close. Volume increased further to 1,087 shares, indicating sustained selling interest. The Sensex edged up 0.10% to 36,730.20, outperforming the stock. The modest decline capped the week’s price action, which overall showed a 1.30% gain from the prior Friday’s close of Rs.56.75. The stock’s underperformance relative to the Sensex highlighted lingering investor concerns over operational challenges and liquidity constraints despite positive revenue growth.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.58.00 | +2.20% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.58.11 | +0.19% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.58.84 | +1.26% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.58.09 | -1.27% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.57.49 | -1.03% | 36,730.20 | +0.10% |
Key Takeaways
Revenue Growth and Profitability: Narbada Gems demonstrated robust revenue growth of 21.2% over six months, with profit after tax rising to ₹4.83 crores. The company’s ROCE peaked at 14.20%, signalling efficient capital utilisation despite margin pressures.
Operational Challenges: The debtor turnover ratio declined to 3.59 times, indicating slower collections and potential working capital stress. Cash and cash equivalents dropped to a minimal ₹0.08 crores, raising liquidity concerns that could impact short-term obligations.
Stock Performance: The stock gained 1.30% over the week, closing at Rs.57.49, but underperformed the Sensex’s 1.51% rise. Volumes increased notably on days of price decline, suggesting profit booking and cautious investor sentiment.
Rating and Market Context: The company’s Mojo Grade remains at Sell with a score of 48.0, reflecting caution amid operational and liquidity risks. The gems and jewellery sector continues to face headwinds from fluctuating gold prices and regulatory challenges, which may weigh on near-term performance.
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Conclusion
Narbada Gems & Jewellery Ltd’s week was characterised by a modest price gain amid mixed financial signals. The company’s strong revenue growth and improved profitability metrics were offset by margin pressures and liquidity constraints, reflected in a cautious market response. While the stock outperformed the Sensex on the first trading day, it lagged behind in subsequent sessions, closing the week with a 1.30% gain versus the Sensex’s 1.51% rise. Investors should monitor the company’s ability to improve working capital management and cash reserves in upcoming quarters to better assess its financial health and market positioning.
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