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?

Which are the latest news on Bluestone Jewel?

Why is Bluestone Jewel falling/rising?

As of 04-Dec, Bluestone Jewellery & Lifestyle Ltd's stock price is at 545.55, reflecting a decline of 0.7% and significant underperformance compared to its sector. The stock has dropped 23.30% over the past month due to weak fundamentals, high debt levels, and pledged shares, indicating a bearish trend.

As of 04-Dec, Bluestone Jewellery & Lifestyle Ltd's stock price is falling, currently at 545.55, which reflects a decrease of 3.85 or 0.7%. The stock has underperformed its sector by 0.48% today and has been on a consecutive decline for the last two days, accumulating a total drop of 2.62% during this period. The stock reached an intraday low of Rs 535.05, indicating significant selling pressure.<BR><BR>In terms of performance over the past week, the stock has decreased by 2.75%, while the benchmark Sensex has only fallen by 0.53%. Over the past month, Bluestone's stock has seen a substantial decline of 23.30%, contrasting sharply with the Sensex's increase of 2.16%. This underperformance is compounded by the fact that the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a bearish trend.<BR><BR>Several negative factors contribute to this decline. The company exhibits weak long-term fundamental strength, with an average Return on Capital Employed (ROCE) of 0% and a high Debt to EBITDA ratio of 12.27 times, indicating low ability to service debt. Additionally, the stock has generated no returns over the past year, while profits have plummeted by 54%. The situation is further exacerbated by the fact that 37.21% of promoter shares are pledged, which can exert additional downward pressure on stock prices in a falling market. Overall, these factors collectively explain the current decline in Bluestone's stock price.