ScoreWhy is Sovereign Diamonds Ltd ?
1
Weak Long Term Fundamental Strength with a -228.18% CAGR growth in Operating Profits over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.84 times
- The company has been able to generate a Return on Equity (avg) of 5.32% signifying low profitability per unit of shareholders funds
2
Flat results in Sep 25
- NET SALES(9M) At Rs 14.22 cr has Grown at -23.59%
- PAT(9M) At Rs -4.88 cr has Grown at -23.59%
3
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -57.55%, its profits have fallen by -550%
4
Below par performance in long term as well as near term
- Along with generating -57.55% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Sover. Diamonds for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sover. Diamonds
-57.55%
-1.18
48.85%
Sensex
4.66%
0.39
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.82%
EBIT Growth (5y)
-228.18%
EBIT to Interest (avg)
0.88
Debt to EBITDA (avg)
2.98
Net Debt to Equity (avg)
0.52
Sales to Capital Employed (avg)
0.96
Tax Ratio
4.60%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.06%
ROE (avg)
5.32%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
52
Price to Book Value
0.81
EV to EBIT
-6.36
EV to EBITDA
-7.67
EV to Capital Employed
0.88
EV to Sales
0.86
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
6.20%
ROE (Latest)
-28.02%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
OPERATING CF(Y)
Highest at Rs 2.54 Cr
PAT(Q)
Highest at Rs 0.10 cr.
EPS(Q)
Highest at Rs 0.17
-4What is not working for the Company
NET SALES(9M)
At Rs 14.22 cr has Grown at -23.59%
PAT(9M)
At Rs -4.88 cr has Grown at -23.59%
Loading Valuation Snapshot...
Here's what is working for Sover. Diamonds
Operating Cash Flow - Annually
Highest at Rs 2.54 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 0.10 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.17
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Sover. Diamonds
Net Sales - Nine Monthly
At Rs 14.22 cr has Grown at -23.59%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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