Is Bluestone Jewel overvalued or undervalued?

As of September 5, 2025, Bluestone Jewel is classified as risky and overvalued, with troubling financial ratios such as a PE of -41.90 and an EV to EBITDA of 131.13, indicating significant operational challenges compared to its peers like Titan Company and Kalyan Jewellers.

As of 5 September 2025, the valuation grade for Bluestone Jewel has moved from does not qualify to risky, indicating a significant shift in its perceived investment quality. The company is currently overvalued, as evidenced by its troubling financial ratios, including a PE ratio of -41.90, an EV to EBITDA of 131.13, and a ROE of -68.75%. These figures suggest that the company is struggling to generate profits and is facing substantial operational challenges.<BR><BR>In comparison to its peers, Bluestone Jewel's financial metrics stand out unfavorably. For instance, Titan Company has a PE ratio of 87.55, while Kalyan Jewellers shows a PE of 64.79, both indicating a more favorable valuation environment in the industry. Notably, PC Jeweller, classified as very attractive, boasts a PE ratio of 14.94, highlighting the stark contrast in value propositions within the sector. Additionally, while Bluestone Jewel has recently outperformed the Sensex with a 1-week return of 13.3%, this short-term performance does not mitigate the overall overvaluation reflected in its financial health.

How has been the historical performance of Bluestone Jewel?

Bluestone Jewel faced significant financial challenges in the fiscal year ending March 2025, reporting a net profit of -221.67 crore, high raw material costs, and a profit before tax of -219.90 crore, with an EPS of -62.97. The company also experienced cash flow difficulties, with operating cash flow at -665.00 crore and closing cash equivalents at 48.00 crore.

Answer:<BR>The historical performance of Bluestone Jewel shows significant challenges in the fiscal year ending March 2025, with a consolidated net profit of -221.67 crore and a profit before tax of -219.90 crore. The company reported total operating income of 1,770.00 crore, but faced high raw material costs of 1,721.54 crore, leading to an operating profit (PBDIT) of 135.14 crore. However, after accounting for interest expenses of 207.55 crore and depreciation of 147.49 crore, the gross profit (PBDT) fell to -72.41 crore. The earnings per share (EPS) were reported at -62.97, indicating a challenging financial environment.<BR><BR>Breakdown:<BR>In the fiscal year ending March 2025, Bluestone Jewel generated net sales of 1,770.00 crore, with total operating income matching this figure. The company incurred substantial raw material costs of 1,721.54 crore, which, along with other expenses, resulted in a total expenditure of 1,694.89 crore. This led to an operating profit (PBDIT) of 75.11 crore, but after including other income, the total operating profit was 135.14 crore. Despite this, high interest expenses of 207.55 crore and depreciation of 147.49 crore contributed to a profit before tax of -219.90 crore, which translated to a profit after tax of -219.90 crore as well. The company's total liabilities stood at 3,532.28 crore, with total assets also at 3,532.28 crore, indicating a balance sheet under pressure. The cash flow from operating activities was reported at -665.00 crore, reflecting ongoing cash flow difficulties, while the closing cash and cash equivalents were down to 48.00 crore.

Are Bluestone Jewel latest results good or bad?

Bluestone Jewel's latest results show mixed performance, with a 6.80% revenue increase and improved operating margins, but it still faces challenges with a net loss of ₹34.52 crores and high interest expenses. While there are signs of operational improvement, the ongoing losses and thin profit margins suggest caution for potential investors.

Bluestone Jewel's latest results present a mixed picture. On one hand, the company has shown some positive trends, such as a 6.80% increase in revenue quarter-over-quarter, reaching ₹492.68 crores, and a significant improvement in operating margins, which rose to 11.32% from 5.86%. Additionally, the net loss of ₹34.52 crores represents a 32.46% improvement compared to the previous quarter, indicating progress in reducing losses.<BR><BR>However, despite these improvements, the company continues to face significant challenges. The operational gains are overshadowed by high interest expenses, which accounted for 10.74% of revenue, and substantial depreciation costs. The gross profit margin remains very thin at 3.04%, and the company is still not profitable, with a negative PAT margin of -7.05%. <BR><BR>The overall financial health raises concerns about the sustainability of the business model, particularly given the competitive landscape in the jewellery sector. While the stock has performed well in the short term, with a 16.13% gain over the past month, the underlying issues of persistent losses and high leverage suggest caution for potential investors. <BR><BR>In summary, while there are signs of operational improvement, the continued net losses and structural cost burdens indicate that the results are not entirely positive and warrant careful consideration.

Should I buy, sell or hold Bluestone Jewel?

Why is Bluestone Jewel falling/rising?

As of 21-Dec, Bluestone Jewellery & Lifestyle Ltd's stock price is rising to Rs 510.90, reflecting a 1.52% increase. However, the stock's overall outlook is cautious due to weak fundamentals, declining investor participation, and trading below moving averages.

As of 21-Dec, Bluestone Jewellery & Lifestyle Ltd's stock price is rising, currently at Rs 510.90, reflecting an increase of Rs 7.65 or 1.52%. This rise can be attributed to the stock outperforming its sector by 1.15% today and experiencing consecutive gains over the last three days, with a total return of 2.37% during this period. Additionally, the stock reached an intraday high of Rs 517.9, indicating positive momentum.<BR><BR>However, it is important to note that despite the recent gains, the stock is trading below its moving averages across various time frames, which suggests underlying weaknesses. Furthermore, the stock is still close to its 52-week low, being only 3.46% away from Rs 493.2. <BR><BR>Investor participation has also been declining, with a significant drop in delivery volume by 46.83% compared to the five-day average, indicating reduced interest among investors. The company's long-term fundamentals are weak, highlighted by a return on capital employed (ROCE) of 0% and a high debt-to-EBITDA ratio of 12.27 times, which raises concerns about its ability to service debt. Additionally, 37.21% of promoter shares are pledged, which can exert downward pressure on the stock in a falling market.<BR><BR>In summary, while the stock is currently rising due to short-term performance, the overall outlook remains cautious due to weak fundamentals and declining investor participation.

Why is Bluestone Jewel falling/rising?

As of 22-Dec, Bluestone Jewellery & Lifestyle Ltd's stock price is rising to Rs 516.25, reflecting a 1.29% increase. This rise is driven by recent gains and outperformance against its sector, although concerns about long-term fundamentals and high debt remain.

As of 22-Dec, Bluestone Jewellery & Lifestyle Ltd's stock price is rising, currently at Rs 516.25, reflecting a change of Rs 6.55 or 1.29% increase. This upward movement can be attributed to several factors. Firstly, the stock has been gaining for the last four days, with a total return of 3.45% during this period. Additionally, it has outperformed its sector by 1.19% today, indicating a relatively strong performance compared to its peers.<BR><BR>The stock also touched an intraday high of Rs 520.15, which is a positive sign of investor interest. However, it is important to note that the stock is still close to its 52-week low, being only 4.46% away from Rs 493.2. Despite the recent gains, the stock's performance over the past month shows a decline of 9.55%, contrasting with the Sensex's modest gain of 0.39% during the same period.<BR><BR>While the stock is currently rising, there are underlying concerns such as weak long-term fundamental strength, a high Debt to EBITDA ratio, and a significant proportion of promoter shares being pledged, which could pose risks in the future. Nonetheless, the recent short-term gains and outperformance against the sector are contributing to the current rise in stock price.

Why is Bluestone Jewellery & Lifestyle Ltd falling/rising?

As of 23-Dec, Bluestone Jewellery & Lifestyle Ltd's stock price is falling to Rs 507.55, down 1.85%. This decline is due to underperformance in the sector, increased selling pressure, proximity to a 52-week low, reduced investor participation, weak fundamentals, and a significant percentage of pledged promoter shares.

As of 23-Dec, Bluestone Jewellery & Lifestyle Ltd's stock price is falling, currently at Rs 507.55, which reflects a decrease of Rs 9.55 or 1.85%. This decline can be attributed to several factors highlighted in the source data. <BR><BR>Firstly, the stock has underperformed its sector by 1.7% today and has experienced a trend reversal after four consecutive days of gains, indicating a shift in market sentiment. The stock also touched an intraday low of Rs 501.3, which is 3.06% lower than its previous price, suggesting increased selling pressure.<BR><BR>Moreover, the stock is close to its 52-week low, being only 2.83% away from Rs 493.2. This proximity to a low point may signal to investors a lack of confidence in the stock's recovery potential. Additionally, there has been a significant drop in investor participation, with delivery volume falling by 69.24% compared to the 5-day average, indicating reduced interest from investors.<BR><BR>From a fundamental perspective, the company shows weak long-term strength, with an average Return on Capital Employed (ROCE) of 0% and a high Debt to EBITDA ratio of 12.27 times, which raises concerns about its ability to service debt. Furthermore, the stock has generated no returns over the past year while profits have decreased by 54%, further contributing to negative sentiment.<BR><BR>Lastly, the fact that 37.21% of promoter shares are pledged adds to the risk, as this can exert additional downward pressure on the stock price in a falling market. Overall, these factors collectively explain the current decline in Bluestone Jewellery & Lifestyle Ltd's stock price.

Which are the latest news on Bluestone Jewel?