Bluestone Jewel

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.

When is the next results date for Bluestone Jewellery & Lifestyle Ltd?

The next results date for Bluestone Jewellery & Lifestyle Ltd is January 22, 2026.

The next results date for Bluestone Jewellery & Lifestyle Ltd is scheduled for January 22, 2026.

Are Bluestone Jewellery & Lifestyle Ltd latest results good or bad?

Bluestone Jewellery & Lifestyle Ltd's Q3 FY26 results show significant improvement, with a net profit of ₹69.08 crore and a 45.76% increase in revenue. However, concerns about high debt, weak return ratios, and governance issues suggest that long-term sustainability may be at risk despite the strong quarterly performance.

Bluestone Jewellery & Lifestyle Ltd's latest results for Q3 FY26 can be characterized as a significant improvement compared to previous quarters. The company reported a net profit of ₹69.08 crore, which marks a remarkable increase of 233.49% quarter-over-quarter (QoQ) and a substantial turnaround from the losses experienced in Q1 and Q2 FY26. Revenue also saw a robust growth of 45.76% QoQ, reaching ₹748.65 crore, which is the highest quarterly revenue in the company's recent history.<BR><BR>The operating margin improved dramatically to 22.21%, up from 8.11% in the previous quarter, indicating better cost management and operational efficiency during the peak festive season. Additionally, the profit after tax (PAT) margin turned positive at 9.20%, a notable recovery from the negative margins recorded in earlier quarters.<BR><BR>However, despite these positive results, there are underlying concerns. The company's stock is trading significantly below its 52-week high, and it carries a "Strong Sell" rating due to structural issues such as high debt levels and weak return ratios. The near-total pledging of promoter shares (98.80%) raises governance concerns and indicates potential financial stress.<BR><BR>In summary, while the latest quarterly results reflect a strong performance driven by seasonal demand, the long-term sustainability of this profitability remains uncertain due to the company's ongoing challenges.

Should I buy, sell or hold Bluestone Jewellery & Lifestyle Ltd?

Which are the latest news on Bluestone Jewel?

Why is Bluestone Jewellery & Lifestyle Ltd falling/rising?

As of 08-Feb, Bluestone Jewellery & Lifestyle Ltd's stock price is declining, currently at Rs 428.90, down 3.04%. The stock is underperforming with significant long-term financial risks, including a high Debt to EBITDA ratio and pledged promoter shares, contributing to its poor performance.

As of 08-Feb, Bluestone Jewellery & Lifestyle Ltd is experiencing a decline in its stock price, currently at Rs 428.90, which represents a decrease of Rs 13.45 or 3.04%. This downward movement is reflected in various performance metrics. Over the past week, the stock has fallen by 2.41%, while it has seen a more significant decline of 11.59% over the past month. Year-to-date, the stock is down 8.85%, contrasting sharply with the Sensex, which has increased by 1.59% during the same period.<BR><BR>Today's performance indicates that the stock is underperforming its sector by 4.24%, and it has touched an intraday low of Rs 425.15, marking a drop of 3.89%. Additionally, the stock is trading below all its moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, which is a bearish signal.<BR><BR>Investor participation appears to be declining, as evidenced by a 13.54% drop in delivery volume compared to the 5-day average. Furthermore, the stock is close to its 52-week low, being only 3.24% away from Rs 415.<BR><BR>While the company reported very positive results in December, including a 226.97% growth in operating profit and a significant increase in net sales, these positives are overshadowed by long-term concerns. The company has a weak fundamental strength, indicated by 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. Additionally, the stock has generated no returns over the past year, with profits falling by 54%. The fact that 98.8% of promoter shares are pledged adds further risk, as this can exert additional downward pressure on the stock in a falling market.<BR><BR>In summary, the combination of poor short-term performance, declining investor interest, and significant long-term financial risks are contributing to the falling stock price of Bluestone Jewellery & Lifestyle Ltd.