Banaras Beads Limited (BANARBEADS) AI Stock Analysis

• Market Cap: ₹740.60M
• Dividend Yield: 1.72%
• Average Volume (3M): 769.00
• Price to Earnings (P/E): 39.3
• Beta (1Y): 1.15
• Revenue Growth: -22.27%
• EPS Growth: -42.61%
• Country: IN
• Employees: 242
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.87
• Shares Outstanding: 6,636,222
• 10 Day Avg. Volume: 487
• 30 Day Avg. Volume: 769
• PEG Ratio: 2.34
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 2.65
• P/FCF Ratio: 32.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹117.00 ▼(-18.58% Downside)

Banaras Beads Limited shows strong financial performance with consistent revenue growth and profitability, but faces risks from increased leverage and cash flow volatility. Technical indicators suggest bearish momentum, and the stock appears overvalued with a high P/E ratio. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue growth trajectory

Sustained multi-year revenue expansion indicates durable demand and improved market penetration across domestic and export channels. A growing top line supports scale benefits, better absorption of fixed costs, and provides bandwidth to invest in higher-margin product mix or distribution.

Strong capitalization and ROE

High equity ratio and a maintained ROE reflect conservative capitalization and disciplined capital allocation. Low reliance on debt preserves financial flexibility for export financing, reduces refinancing risk, and supports resilience through cyclical demand swings in handicrafts and accessories.

Improving cash generation

Turnaround to positive free cash flow shows better conversion of profits into cash, strengthening liquidity for working capital and capex needs. Reliable cash generation improves the firm's ability to self-fund export orders and reduces dependence on short-term external funding.

Negative Factors

Rising leverage

An uptick in debt-to-equity, while moderate, indicates growing reliance on external financing. Over time higher leverage increases interest costs and reduces covenant headroom, which can constrain capacity to invest or absorb demand shocks if profitability weakens.

Cash flow volatility

Fluctuating historical cash flows raise the risk of liquidity strain during seasonal export cycles or slower collections. Persistent volatility can force repeated short-term borrowing, increasing financing costs and limiting managerial flexibility to pursue growth or weather external shocks.

Gross margin compression

Declining gross margins point to rising input costs or adverse product mix that erode unit economics. If structural, sustained margin pressure will limit net income growth and may necessitate cost restructuring or price increases that could impair competitiveness in price-sensitive markets.

Banaras Beads Limited Business Overview & Revenue Model

Company Description

Banaras Beads Limited (BANARBEADS) is a leading manufacturer and supplier of high-quality beads and decorative accessories, specializing in traditional and contemporary designs. The company operates primarily in the fashion and jewelry sectors, providing a diverse range of products including glass beads, metal beads, and handcrafted embellishments. With a commitment to craftsmanship, BANARBEADS serves both domestic and international markets, catering to wholesalers, retailers, and individual artisans.

How the Company Makes Money

Banaras Beads Limited generates revenue through multiple key streams. The primary source of income comes from the direct sale of its bead products to retailers and wholesalers, which includes bulk orders and custom designs for specific clients. Additionally, the company has established partnerships with fashion designers and jewelry makers, offering exclusive collections that enhance its market presence and drive sales. Another revenue stream includes online sales through its e-commerce platform, which allows the company to reach a broader customer base. The company also benefits from attending trade shows and exhibitions, where it showcases its products and builds relationships with potential buyers, further contributing to its earnings.

Banaras Beads Limited Financial Statement Overview

Summary

Banaras Beads Limited demonstrates strong revenue growth and consistent profitability, with a solid return on equity. However, increased leverage and cash flow volatility present potential risks. Overall, the company's financial health appears stable with opportunities for further growth, though careful management of debt and cash flows is essential.

Income Statement

Banaras Beads Limited shows a strong revenue growth trajectory, with revenue increasing from INR 194 million in 2021 to INR 316 million in 2025. The net profit margin improved from 12.3% in 2021 to 9.8% in 2025, indicating consistent profitability. However, the gross profit margin decreased from 44.7% in 2021 to 39.4% in 2025, suggesting rising costs. Overall, the steady increase in revenue and net income reflects a positive growth trend.

Balance Sheet

The company's debt-to-equity ratio increased significantly, from 0.09 in 2021 to 0.15 in 2025, indicating higher leverage, which could pose a risk if not managed properly. However, the return on equity (ROE) remained healthy at 5.5% in 2025. The equity ratio slightly decreased from 89.2% in 2021 to 83.8% in 2025, reflecting a well-capitalized position despite the increased debt.

Cash Flow

Banaras Beads Limited experienced fluctuations in free cash flow, moving from negative INR 59 million in 2021 to positive INR 25 million in 2025. The operating cash flow to net income ratio improved, indicating better cash generation relative to profits. However, the historical volatility in cash flows suggests potential liquidity challenges, which could impact future operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	306.95M	315.63M	272.57M	259.65M	242.97M	200.16M
Gross Profit	158.50M	124.21M	133.05M	67.99M	135.54M	86.79M
EBITDA	63.17M	61.14M	49.74M	48.64M	53.39M	47.71M
Net Income	31.59M	30.88M	27.51M	25.43M	29.20M	23.93M
Balance Sheet
Total Assets	0.00	666.32M	598.04M	559.12M	597.69M	560.93M
Cash, Cash Equivalents and Short-Term Investments	28.58M	28.58M	118.55M	11.20M	120.27M	96.83M
Total Debt	0.00	85.83M	32.90M	2.91M	58.01M	43.28M
Total Liabilities	-558.42M	107.89M	55.64M	30.74M	81.36M	60.49M
Stockholders Equity	558.42M	558.42M	542.40M	528.39M	516.33M	500.45M
Cash Flow
Free Cash Flow	0.00	25.35M	-44.93M	-56.70M	-124.43M	-59.86M
Operating Cash Flow	0.00	51.89M	-34.74M	-44.48M	-40.38M	-57.18M
Investing Cash Flow	0.00	-180.19M	129.37M	9.49M	100.62M	28.88M
Financing Cash Flow	0.00	38.09M	14.20M	-76.17M	-554.00K	42.69M

Banaras Beads Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 143.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BANARBEADS, the sentiment is Negative. The current price of 143.7 is above the 20-day moving average (MA) of 115.01, above the 50-day MA of 123.62, and above the 200-day MA of 122.80, indicating a bearish trend. The MACD of -4.62 indicates Negative momentum. The RSI at 45.05 is Neutral, neither overbought nor oversold. The STOCH value of 61.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BANARBEADS.

Banaras Beads Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIL	68 Neutral	₹10.60B	34.61	―	―	31.04%	6468.72%
JAIPURKURT	62 Neutral	₹750.65M	30.10	―	―	37.68%	-67.76%
MIRZAINT	62 Neutral	₹5.22B	52.83	―	―	-15.05%	-18.55%
BANARBEADS	60 Neutral	₹740.60M	39.28	―	1.72%	-22.27%	-42.61%
SUPERHOUSE	57 Neutral	₹1.74B	31.50	―	0.55%	9.09%	-60.38%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
LIBERTSHOE	53 Neutral	₹4.27B	32.18	―	―	―	―

Banaras Beads Limited Corporate Events

Banaras Beads Forfeits 38,700 Partly Paid Shares Over Unpaid Call Money

Banaras Beads Limited has forfeited 38,700 partly paid-up equity shares of Rs 10 each after shareholders failed to pay the outstanding allotment and call money, including share premium, despite multiple reminder and final call notices. The board’s decision, taken on 29 January 2026, affects 387 shareholders and removes these defaulted shares from the company’s equity base, signalling stricter enforcement of payment obligations and marginally tightening its share capital structure, with formal forfeiture notices to be issued in due course.

Banaras Beads Confirms Timely Demat Processing and Regulatory Compliance for Q3 FY2025-26

Banaras Beads Limited has notified the stock exchanges that, in compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, it has submitted a confirmation certificate from its registrar and share transfer agent, Mas Services Limited, for the quarter ended 31 December 2025. The registrar confirms that all securities received for dematerialisation between 1 October and 31 December 2025 were processed within the prescribed 15-day period, with certificates duly mutilated and cancelled, depository names substituted in the register of members, and updates communicated to depositories and stock exchanges, underscoring the company’s adherence to regulatory norms and robust shareholder record-keeping practices.