WEBSITE BSE:523826 NSE: SOVEREIGN DI Inc. Year: 1974 Industry: Diamond & Jewellery My Bucket: Add Stock
Last updated: 10:47
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1. Business Overview
Sovereign Diamonds Ltd. operates in the Diamond & Jewellery sector in India. The company is primarily involved in the business of diamonds and diamond jewellery. This typically includes activities such as sourcing rough diamonds, cutting and polishing them into finished stones, and manufacturing diamond-studded jewellery. The core business model likely involves selling these polished diamonds and jewellery products to wholesale clients, retailers, or potentially directly to consumers, thereby generating revenue from sales margins.
2. Key Segments / Revenue Mix
While specific revenue contribution data is not available, the company's operations would generally comprise two main segments:
Polished Diamonds: Involving the trading and sale of cut and polished loose diamonds.
Diamond Jewellery: Encompassing the design, manufacturing, and sale of finished jewellery pieces incorporating diamonds.
3. Industry & Positioning
The Indian Diamond & Jewellery industry is a significant global player, particularly in diamond cutting and polishing, where India processes a large majority of the world's diamonds. The industry is characterized by a mix of unorganized and organized players, intense competition, and a strong export orientation alongside a growing domestic market. Sovereign Diamonds Ltd. operates within this competitive landscape, likely positioning itself based on product quality, design, pricing, or specific market niches (e.g., domestic wholesale, international exports). Without specific market share data, it is positioned as a participant in the broader Indian diamond and jewellery ecosystem.
4. Competitive Advantage (Moat)
Without specific information, it is difficult to identify a strong, durable competitive advantage for Sovereign Diamonds Ltd. Potential moats in this industry can include:
Brand Recognition: For consumer-facing jewellery brands.
Scale & Sourcing Power: Efficient procurement of rough diamonds and manufacturing scale.
Specialized Expertise: Unique cutting techniques or jewellery design capabilities.
Strong Supply Chain Relationships: Access to quality rough diamonds or distribution networks.
For a company without a dominant retail brand, competitive advantages are often derived from operational efficiency, cost management, and reliable supply chains, which are typically harder to sustain as a deep moat.
5. Growth Drivers
Rising Disposable Incomes in India: Increasing affluence among the Indian middle class fuels domestic demand for diamond jewellery.
Cultural Significance: Diamonds and gold jewellery hold strong cultural and traditional value in India, ensuring sustained demand for occasions.
Global Demand for Diamonds: Continued demand from key international markets for polished diamonds and jewellery.
Organized Retail Growth: Shift from unorganized to organized retail could benefit structured players with wider reach.
E-commerce Penetration: Growth in online sales channels for jewellery, expanding market access.
6. Risks
Economic Downturns: Diamond and jewellery sales are discretionary, making the company susceptible to economic slowdowns and reduced consumer spending.
Price Volatility: Fluctuations in the prices of rough diamonds and polished diamonds can impact margins and inventory values.
Currency Fluctuations: As an export-oriented or import-reliant business, adverse currency movements can affect profitability.
Intense Competition: The industry is highly competitive, leading to pricing pressures and potentially lower margins.
Regulatory Changes: Changes in import/export policies, duties, or taxation could impact operations.
Ethical Sourcing & Lab-Grown Diamonds: Increasing consumer awareness of ethical sourcing (e.g., Kimberley Process compliance) and the growing market for lab-grown diamonds could present challenges to natural diamond sales.
7. Management & Ownership
Typical of many Indian companies, Sovereign Diamonds Ltd. is likely promoter-driven, meaning the founding family or a core group holds a significant ownership stake and exercises substantial control over management and strategic direction. Specific details regarding the management quality or the exact ownership structure are not provided.
8. Outlook
Sovereign Diamonds Ltd. operates in an industry with fundamental growth drivers, particularly from a growing Indian domestic market and sustained global demand for diamonds. However, the sector is inherently cyclical, highly competitive, and exposed to commodity price volatility and economic conditions. The company's future performance will depend on its ability to manage these risks, maintain efficient operations, adapt to evolving consumer preferences (including the rise of lab-grown diamonds), and effectively compete for market share in both domestic and international markets. The outlook is balanced, acknowledging both the growth potential stemming from market fundamentals and the significant industry-specific challenges and competitive pressures.
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Market Cap ₹13 Cr.
Stock P/E 1010.6
P/B 1
Current Price ₹22
Book Value ₹ 21.9
Face Value 10
52W High ₹40
Dividend Yield 0%
52W Low ₹ 18.2
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 7 | 8 | 8 | 6 | 5 | 12 | 4 | 8 | 2 | 3 |
| Other Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Income | 7 | 8 | 8 | 6 | 5 | 12 | 4 | 8 | 2 | 3 |
| Total Expenditure | 6 | 6 | 7 | 5 | 4 | 11 | 4 | 13 | 1 | 3 |
| Operating Profit | 1 | 1 | 1 | 0 | 0 | 1 | 0 | -5 | 0 | 1 |
| Interest | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 0 | 1 | 0 | -0 | -0 | 0 | -0 | -5 | 0 | 0 |
| Provision for Tax | 0 | 0 | -0 | 0 | -0 | 0 | 0 | -0 | 0 | 0 |
| Profit After Tax | 0 | 0 | 0 | -0 | -0 | 0 | -0 | -5 | 0 | 0 |
| Adjustments | -0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 0 | 0 | 0 | -0 | 0 | 0 | -0 | -5 | 0 | 0 |
| Adjusted Earnings Per Share | 0.5 | 0.8 | 0.6 | -0.1 | -0 | 0.2 | -0.2 | -8.4 | 0.2 | 0.7 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 60 | 53 | 45 | 37 | 40 | 32 | 15 | 23 | 28 | 27 | 20 | 17 |
| Other Income | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 0 |
| Total Income | 60 | 53 | 45 | 37 | 40 | 33 | 16 | 24 | 29 | 28 | 21 | 17 |
| Total Expenditure | 55 | 49 | 41 | 34 | 38 | 31 | 16 | 21 | 25 | 25 | 20 | 21 |
| Operating Profit | 5 | 4 | 4 | 3 | 3 | 2 | -0 | 3 | 4 | 4 | 2 | -4 |
| Interest | 2 | 2 | 2 | 2 | 2 | 1 | 1 | 1 | 1 | 1 | 1 | 0 |
| Depreciation | 0 | 0 | 0 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 3 | 2 | 2 | 1 | 0 | 0 | -1 | 1 | 2 | 2 | 0 | -5 |
| Provision for Tax | 1 | 1 | 0 | 0 | 0 | 0 | 0 | -0 | 1 | 0 | 0 | 0 |
| Profit After Tax | 2 | 1 | 1 | 1 | 0 | 0 | -1 | 1 | 1 | 1 | 0 | -5 |
| Adjustments | 0 | 0 | 0 | 0 | -0 | 0 | 0 | -0 | -0 | 0 | 0 | 0 |
| Profit After Adjustments | 2 | 1 | 1 | 1 | 0 | 0 | -1 | 1 | 1 | 1 | 0 | -5 |
| Adjusted Earnings Per Share | 3.2 | 2.1 | 1.8 | 1.4 | 0.5 | 0.1 | -2.6 | 2.3 | 2.4 | 2.4 | 0 | -7.7 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -26% | -5% | -9% | -10% |
| Operating Profit CAGR | -50% | -13% | 0% | -9% |
| PAT CAGR | -100% | -100% | 0% | -100% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -41% | -6% | 30% | 9% |
| ROE Average | 0% | 6% | 3% | 6% |
| ROCE Average | 5% | 9% | 7% | 9% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 11 | 12 | 13 | 14 | 14 | 14 | 13 | 14 | 16 | 17 | 17 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 1 | 0 | 0 | 0 |
| Other Non-Current Liabilities | -0 | -0 | -0 | -0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Liabilities | 28 | 22 | 16 | 15 | 17 | 19 | 12 | 13 | 16 | 15 | 10 |
| Total Liabilities | 39 | 35 | 29 | 29 | 31 | 33 | 27 | 29 | 32 | 32 | 28 |
| Fixed Assets | 3 | 3 | 3 | 2 | 3 | 3 | 4 | 4 | 3 | 4 | 3 |
| Other Non-Current Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 1 | 1 |
| Total Current Assets | 37 | 32 | 26 | 27 | 28 | 30 | 23 | 25 | 28 | 27 | 24 |
| Total Assets | 39 | 35 | 29 | 29 | 31 | 33 | 27 | 29 | 32 | 32 | 28 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 |
| Cash Flow from Operating Activities | 0 | 4 | 4 | 2 | 5 | 2 | 3 | 1 | 1 | 1 | 3 |
| Cash Flow from Investing Activities | -0 | -1 | -0 | -0 | -1 | -1 | -1 | -1 | -1 | 1 | 1 |
| Cash Flow from Financing Activities | 0 | -3 | -3 | -2 | -4 | -1 | -1 | -2 | 0 | -2 | -4 |
| Net Cash Inflow / Outflow | -0 | -0 | 0 | 0 | 0 | -0 | 1 | -1 | -0 | -0 | -0 |
| Closing Cash & Cash Equivalent | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 3.2 | 2.09 | 1.78 | 1.45 | 0.48 | 0.06 | -2.57 | 2.3 | 2.44 | 2.38 | 0.02 |
| CEPS(Rs) | 3.84 | 2.87 | 2.61 | 2.36 | 1.35 | 0.86 | -1.79 | 3.15 | 3.29 | 3.24 | 0.88 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 18.9 | 21 | 22.69 | 24.13 | 24.58 | 24.65 | 22.1 | 24.39 | 26.82 | 29.17 | 29.47 |
| Core EBITDA Margin(%) | 8.76 | 8.13 | 8.59 | 9.17 | 6.38 | 4.32 | -4.28 | 8.98 | 8.4 | 8.11 | 1.8 |
| EBIT Margin(%) | 8.2 | 7.32 | 7.53 | 7.91 | 5.13 | 4.38 | -3.08 | 9.71 | 11.16 | 11.18 | 6.79 |
| Pre Tax Margin(%) | 4.64 | 3.47 | 3.32 | 2.97 | 1 | 0.23 | -9.77 | 5.7 | 6.93 | 6.2 | 0.64 |
| PAT Margin (%) | 3.08 | 2.28 | 2.26 | 2.26 | 0.69 | 0.11 | -9.95 | 5.82 | 5.07 | 5.09 | 0.06 |
| Cash Profit Margin (%) | 3.7 | 3.13 | 3.32 | 3.68 | 1.94 | 1.53 | -6.93 | 7.96 | 6.85 | 6.93 | 2.56 |
| ROA(%) | 5.53 | 3.27 | 3.22 | 2.87 | 0.92 | 0.11 | -4.94 | 4.8 | 4.66 | 4.35 | 0.04 |
| ROE(%) | 18.33 | 10.49 | 8.13 | 6.17 | 1.97 | 0.25 | -11 | 9.91 | 9.52 | 8.52 | 0.07 |
| ROCE(%) | 19.22 | 14.12 | 12.56 | 10.62 | 7.62 | 5.42 | -1.8 | 8.85 | 11.57 | 10.71 | 4.99 |
| Receivable days | 95.82 | 118.11 | 90.2 | 61.64 | 61.17 | 101.01 | 168.36 | 84.02 | 97.7 | 118.8 | 141.39 |
| Inventory Days | 81.29 | 99.19 | 124.89 | 190.05 | 184.12 | 222.76 | 455.62 | 280.16 | 239.31 | 243.59 | 315.58 |
| Payable days | 43.5 | 56.41 | 23.25 | 8.78 | 29.61 | 75.76 | 111.03 | 41.17 | 43.58 | 41.5 | 38.7 |
| PER(x) | 2.63 | 4.59 | 5.07 | 7.13 | 11.89 | 55.43 | 0 | 6.12 | 9.09 | 11.15 | 1798.17 |
| Price/Book(x) | 0.44 | 0.46 | 0.4 | 0.43 | 0.23 | 0.14 | 0.27 | 0.58 | 0.83 | 0.91 | 1.33 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.36 | 0.39 | 0.42 | 0.54 | 0.38 | 0.43 | 0.96 | 0.85 | 0.91 | 0.99 | 1.58 |
| EV/Core EBITDA(x) | 4.08 | 4.8 | 4.9 | 5.81 | 5.89 | 7.42 | -1446.2 | 7.16 | 7.07 | 7.62 | 17.04 |
| Net Sales Growth(%) | 50.12 | -11.52 | -15.06 | -18.09 | 8.73 | -19.42 | -53.86 | 53.09 | 21.36 | -2.57 | -26.28 |
| EBIT Growth(%) | 46.12 | -20.92 | -11.98 | -14.48 | -29.58 | -31.23 | -132.47 | 582.28 | 39.45 | -2.33 | -55.27 |
| PAT Growth(%) | 81.82 | -34.49 | -15.17 | -18.62 | -66.78 | -87.16 | -4270.59 | 189.55 | 5.85 | -2.2 | -99.09 |
| EPS Growth(%) | 81.82 | -34.49 | -15.17 | -18.62 | -66.78 | -87.15 | -4268.88 | 189.55 | 5.85 | -2.2 | -99.09 |
| Debt/Equity(x) | 1.54 | 1.26 | 1.07 | 1.01 | 0.84 | 0.84 | 0.94 | 0.8 | 0.82 | 0.68 | 0.52 |
| Current Ratio(x) | 1.3 | 1.41 | 1.64 | 1.75 | 1.68 | 1.59 | 1.98 | 1.93 | 1.77 | 1.87 | 2.32 |
| Quick Ratio(x) | 0.75 | 0.82 | 0.53 | 0.38 | 0.5 | 0.54 | 0.48 | 0.56 | 0.57 | 0.69 | 0.64 |
| Interest Cover(x) | 2.31 | 1.9 | 1.79 | 1.6 | 1.24 | 1.06 | -0.46 | 2.42 | 2.64 | 2.24 | 1.1 |
| Total Debt/Mcap(x) | 3.45 | 2.76 | 2.69 | 2.38 | 3.6 | 6.05 | 3.44 | 1.39 | 0.99 | 0.75 | 0.39 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 65.01 | 65.01 | 65.01 | 65.01 | 65.01 | 65.01 | 65.01 | 65.01 | 65.01 | 65.01 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 34.99 | 34.99 | 34.99 | 34.99 | 34.99 | 34.99 | 34.99 | 34.99 | 34.99 | 34.99 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 |
* The pros and cons are machine generated.
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