Operating Leverage Inflection
Expected: 9MFY26HIGH confidence
What: EBITDA growth vs Revenue growth: 89% vs 13%
Impact: 357 bps margin expansion
“EBITDA margins expanding to 8.64%, reflecting operating leverage and better cost absorption.”
DP Abhushan Ltd: Is It a Deep Value Opportunity?
Average
As of , DP Abhushan Ltd (Diamond, Gems & Jewellery) has a deep value score of 53/100 (rated Average). 1Y return vs Nifty 500: -39%.
DP Abhushan Ltd Key Facts
- PE Ratio
- 52.1x
- Market Cap
- ₹2,112 Cr
- Value Score
- 53/100
- Margin of Safety
- 204%
- PAT Growth YoY
- +97%
- Revenue Growth YoY
- +13%
- OPM
- 9.0%
PE: Mid ExpansionStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
👔Promoter buying — stake up 1.1% this quarter
💰Trading 204% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. Operating Leverage Inflection
9MFY26HIGH
2. Value Added Product Mix Shift
OngoingMEDIUM
3. Geographical Expansion
3 yearsMEDIUM
Key Risks
1. Elevated gold prices impacting purchase volumes, leading to a 29% decline in gol
MEDIUM2. Not discussed on call
LOWSector-Specific Signals
Gold Volume (Q3)924 kg-29.8%
Inventory Gain₹20 Cr
Silver Revenue₹114 Cr+118%
Diamond Revenue₹115 Cr
Key Numbers
PAT Growth YoY
+97%
Stable
Revenue YoY
+13%
Stable
Operating Margin
9.0%
+400 bps YoY
PE Ratio
52.1
PEG Ratio
0.24
Current Price
₹925
3Y PAT CAGR
+40%
Market Cap
2.1K Cr
Valuation
Significantly UndervaluedWhy Are DP Abhushan Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Value Added Product Mix Shift
Expected: OngoingMEDIUM confidence
What: Silver and Diamond share: 10-12%
“Along with gold jewellery, diamond jewellery carries higher making charges... silver jewellery and newer product categories... carry meaningfully higher margin profiles”
Geographical Expansion
Expected: 3 yearsMEDIUM confidence
What: New store pipeline: 20 stores
“Over the next two to three years, we are planning to open around 20 additional stores.”
EBITDA growth of 89% YoY
HIGH confidence
What: EBITDA growth of 89% YoY
“because gold prices have risen meaningfully, we have also benefited from inventory gains, which account for roughly 25% to 28% of the margin increase.”
Revenue Growth guidance raised
HIGH confidence
What: 20-25% → 25-30%
“For the current year, we’re looking at around 25% to 30% growth.”
What Are the Key Risks for DP Abhushan Ltd?
Earnings deceleration risks from management commentary
Elevated gold prices impacting purchase volumes, leading to a 29% decline in gol
MEDIUMTrigger: Consumers operating within fixed budgets shift to lightweight or lower-purity items.
Management view: Focusing on lightweight 18k/14k jewellery and silver to maintain ticket sizes.
Monitor: commodity
Not discussed on call
LOWTrigger: Not explained on call
Monitor: fx
What Is DP Abhushan Ltd's Management Saying?
Key quotes from recent conference calls
“Based on current trends, we are projecting an overall revenue growth of 20–25% for the year. [Previous Revenue Growth guidance]”
“On the profitability front, we're targeting an EBITDA margin between 7% and 8%. [Previous EBITDA Margin guidance]”
“The QIP process is ongoing. We are actively working on it and making efforts on that front. [Initiative: QIP Process]”
“We have a brand called Amoura... going forward, we definitely plan to expand it separately as a distinct segment. [Initiative: Amoura Brand Expansion]”
What Did DP Abhushan Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹1,222.4 crore
YoY +13%QoQ +26%
Why: Growth was driven by seasonal weddings and festive demand in October and November, despite higher gold prices weighing on volumes.
Sequential growth was significantly higher than YoY growth due to the concentration of the wedding season in Q3.
EBITDA
₹105.6 crore
YoY +89%Margin 8.64%
Why: Margin expansion was driven by operating leverage, better cost absorption, and significant inventory gains from rising gold prices.
EBITDA growth vastly outpaced revenue growth, indicating a high degree of operating leverage.
PAT
₹73.35 crore
YoY +96%QoQ +43%
Why: Profitability improved due to a combination of higher gold prices, inventory gains, and improved realizations in the silver portfolio.
PAT margins reached 6%, a significant improvement from the 2.5% reported in the same quarter last year.
Other Highlights
• Inventory gains contributed approximately ₹20 crores to the gross profit this quarter.
• Silver revenue rose 118% YoY to ₹114 crore, emerging as a key growth driver.
• Nine-month conversion ratio stood at a healthy 82% despite elevated gold prices.
What Sector Metrics Matter for DP Abhushan Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Gold Volume (Q3)
924 kg
YoY -29.8%
Why: Volume decline was due to elevated gold prices causing consumers to buy lighter-weight jewellery.
Inventory Gain
₹20 Cr
Why: Sharp increase in gold prices led to significant gains on existing inventory valued at lower weighted average costs.
Silver Revenue
₹114 Cr
YoY +118%
Why: Silver is being viewed as a relatively affordable alternative to gold amid elevated prices.
Diamond Revenue
₹115 Cr
Why: Strategic focus on strengthening the studded jewellery portfolio to capture higher margins.
Footfall Conversion Ratio
82%
Why: Indicates sustained purchase intent despite elevated prices, particularly in flagship locations.
Total Store Count
11
YoY 0QoQ 0
Why: No new stores opened in the last nine months due to site selection delays.
Weighted Avg Gold Cost
₹1,10,000
Why: Reflects the book value of inventory compared to market prices of ₹1.24-1.25 lakh.
Store Payback Period
9 months
Why: Historical trend of rapid capital recovery for new store investments.
What Is DP Abhushan Ltd's Management Guidance?
Forward-looking targets from management for FY26
Revenue Growth Target
27.5%
OPM Guidance
8–10%
Capex Plan
₹7 Cr
Revenue Outlook
25-30%
Margin Outlook
Margins will continue to expand due to mix shift and disciplined execution.
Capex Plan
₹2.5 - ₹7 crore per store
New store openings in Dhar and Dahod, and 20 additional stores over 3 years.
Volume
Expect strong volume growth if gold prices come down.
Management Tone: BULLISH
Guidance Changes
RAISED
Revenue Growth: 20-25% → 25-30%
How Fast Is DP Abhushan Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +13% | +24% | Stable |
| PAT (Net Profit) | +97% | +40% | Stable |
| OPM | 9.0% | +400 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Deep Value Stocks in Diamond, Gems & Jewellery
Frequently Asked Questions: DP Abhushan Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is DP Abhushan Ltd's deep value score?
DP Abhushan Ltd has a deep value score of 53/100 (rated Average). This score is calculated from three components
- Earnings Score: 21/40 — measures PAT growth momentum across quarters
- Underperformance Score: 23/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 12/25 — operational quality (margins, revenue growth, valuation)
Is DP Abhushan Ltd fundamentally improving?
DP Abhushan Ltd's quarterly profit (PAT) growth trajectory
- Latest Quarter PAT Growth (QoQ): +43%
- Previous Quarter PAT Growth (QoQ): +41%
- 2 Quarters Ago PAT Growth (QoQ): +45%
- PAT Acceleration: -1.1pp (profits are decelerating)
- 3 consecutive quarters of positive PAT growth
Why is DP Abhushan Ltd underperforming despite good earnings?
DP Abhushan Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- 1-Year Return vs Nifty 500: -39%
- 6-Month Return vs Nifty 500: -33%
- 3-Month Return vs Nifty 500: -21%
- Yet average quarterly PAT growth is +43% — earnings are improving
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for DP Abhushan Ltd?
DP Abhushan Ltd's earnings momentum is Decelerating — growth rate is slowing.
- PAT QoQ progression: +45% → +41% → +43% (2Q ago → 1Q ago → latest)
- Acceleration: -1.1pp
- PAT YoY Growth: +97%
Is DP Abhushan Ltd undervalued?
DP Abhushan Ltd's valuation metrics
- Price-to-Earnings (PE): 11.3x
- Price-to-Book (PB): 4.2x
- PEG Ratio: 0.2x
- Margin of Safety: +198% (appears undervalued)
What are the revenue and margin trends for DP Abhushan Ltd?
DP Abhushan Ltd's revenue and margin trends
- Latest Quarter Revenue Growth (QoQ): +26%
- Average Quarterly Revenue Growth: +27%
- Revenue Acceleration: +25.5pp
- Latest OPM Change: +0.8pp (margins expanding)
- Average OPM Change: +0.9pp
- Revenue YoY: +13%
What is DP Abhushan Ltd's trailing twelve month (TTM) performance?
DP Abhushan Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹185 Cr
- TTM PAT Growth: +79.6% YoY
- TTM Revenue: ₹3,000 Cr
- TTM Revenue Growth: +9.4% YoY
- TTM Operating Margin: 8.3%
What sector does DP Abhushan Ltd belong to?
DP Abhushan Ltd key facts
- Sector: Diamond, Gems & Jewellery
- Market Cap: ₹2.1K Cr
- Rank in Diamond, Gems & Jewellery: #4 by value score
- Overall rank among all deep value stocks: #48
Is DP Abhushan Ltd a good deep value opportunity to study?
DP Abhushan Ltd shows limited deep value signals currently — score is 53/100 (Average). Monitor for improvement.
- Value Score: 53/100 (Average)
- Earnings: Not accelerating
- 1Y Underperformance: -39% vs Nifty 500
What is the bull and bear case for DP Abhushan Ltd?
Research Signals (Bull Case)
- 3 consecutive quarters of positive PAT growth
- Appears undervalued based on fair value analysis
- Revenue growth also accelerating
- Operating margins expanding
Risk Factors (Bear Case)
- Earnings growth decelerating
- Significant underperformance (-39% vs Nifty 1Y)
Which other Diamond, Gems & Jewellery stocks are deep value opportunities?
Other deep value stocks in Diamond, Gems & Jewellery
- Tribhovandas Bhimji Zaveri Ltd — Score 61/100, Strong, earnings accelerating
- Radhika Jeweltech Ltd — Score 58/100, Average, earnings accelerating
- Manoj Vaibhav Gems N Jewellers Ltd — Score 57/100, Average, earnings accelerating
- Kalyan Jewellers India Ltd — Score 56/100, Average
- Rajesh Exports Ltd — Score 45/100, Average, earnings accelerating
- Motisons Jewellers Ltd — Score 42/100, Average, earnings accelerating
How does the Diamond, Gems & Jewellery sector look for deep value?
Diamond, Gems & Jewellery deep value sector overview
- 7 deep value stocks in this sector
- Average value score: 53/100
- Avg PAT acceleration: +40.6pp
- Top pick: Tribhovandas Bhimji Zaveri Ltd
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for DP Abhushan Ltd?
DP Abhushan Ltd has 5 key growth catalysts identified from recent earnings analysis
- Operating Leverage Inflection
- Value Added Product Mix Shift
- Geographical Expansion
- EBITDA growth of 89% YoY
What are the key risks in DP Abhushan Ltd?
DP Abhushan Ltd has 2 key risks worth monitoring
- Elevated gold prices impacting purchase volumes, leading to a 29% decline in gol
- Not discussed on call
What did DP Abhushan Ltd's management say in the latest earnings call?
In Q3 FY26, DP Abhushan Ltd's management highlighted
- "Based on current trends, we are projecting an overall revenue growth of 20–25% for the year. [Previous Revenue Growth guidance]"
- "On the profitability front, we're targeting an EBITDA margin between 7% and 8%. [Previous EBITDA Margin guidance]"
- "The QIP process is ongoing. We are actively working on it and making efforts on that front. [Initiative: QIP Process]"
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.