Banaras Beads Limited (BANARBEADS) AI Stock Analysis

• Market Cap: ₹743.26M
• Dividend Yield: 1.72%
• Average Volume (3M): 769.00
• Price to Earnings (P/E): 36.2
• Beta (1Y): 1.19
• 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: ₹118.00 ▼(-17.88% Downside)
• Action: Downgraded Date: 12/02/25
• Date: Action: Downgraded 12/02/25

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

Sustained Revenue Growth

A multi-year rise in revenue demonstrates expanding demand and scale for Banaras Beads’ products. Sustained top-line growth supports operating leverage, improves bargaining power with suppliers, and underpins longer-term investment in product development and export capabilities.

Diversified Export & Domestic Channels

A mixed domestic and export distribution model spreads demand risk and provides access to larger markets. Reliance on multiple materials and product lines (beads, imitation jewellery, decorative items) supports resilience to single-market shocks and enables cross-selling and scale benefits over time.

Improving Cash Generation

Shift to positive free cash flow indicates better conversion of profits to cash, enhancing ability to fund working capital, capex, and debt service internally. Improved OCF-to-net income ratio suggests more sustainable operations and financial flexibility for medium‑term growth execution.

Negative Factors

Rising Leverage

An increase in leverage reduces financial flexibility and raises fixed obligations. For a manufacturing/export business with working capital seasonality, higher debt levels heighten refinancing and interest-rate risks and constrain reinvestment capacity if cash generation weakens.

Gross Margin Compression

A meaningful decline in gross margin signals rising input costs or pricing pressure that can erode long-term profitability. Unless offset by mix improvement or productivity gains, sustained margin compression will limit ability to fund SG&A, R&D, and investments without raising prices.

Historic Cash Flow Volatility

Volatile cash flows make working capital management and order fulfilment riskier, especially for export-oriented operations with advance/collection timing variability. Persistent volatility can force reliance on external financing and increase vulnerability during demand slowdowns.

Banaras Beads Limited Business Overview & Revenue Model

Company Description

Banaras Beads Limited manufactures and exports glass beads, necklaces, imitation jewelries, and other related products in India, the United States, South Africa, the United Kingdom, Ireland, Germany, Europe, the Middle East, and Africa. The company also offers beads made from clay, brass, aluminum, copper, resin, ceramics, horn, bone, semiprecious stones, agate, lac, hand painted beads, spray painted beads, etc.; and trades in leather and cotton wax cords, and miscellaneous handicraft products. It serves wholesalers and retailers, companies dealing in craft business, craft stores/large retail chain stores, and online business companies. The company was founded in 1940 and is headquartered in Varanasi, India.

How the Company Makes Money

Banaras Beads Limited primarily makes money by manufacturing and selling beads, imitation jewellery, and allied handicraft/decorative items to customers in India and overseas. Its core revenue stream is sales of finished goods (e.g., beads and jewellery/accessories) generated through export and domestic distribution channels; revenues are recognized from order-based supply to wholesalers, importers/exporters, retailers, and other trade buyers depending on the product line. Earnings are driven by product volume, product mix (higher-value jewellery and crafted items vs. lower-value commodity-style beads/components), pricing, and execution of export orders, with foreign demand and currency movements acting as meaningful external factors for reported revenues and margins. Specific details on major customer partnerships, contract structures, or segment-wise revenue splits are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	241.87M	315.63M	272.57M	259.65M	242.97M	200.16M
Gross Profit	155.67M	124.21M	133.05M	67.99M	135.54M	86.79M
EBITDA	46.83M	61.14M	49.74M	48.64M	53.39M	47.71M
Net Income	18.06M	30.88M	27.51M	25.43M	29.20M	23.93M
Balance Sheet
Total Assets	740.24M	666.32M	598.04M	559.12M	597.69M	560.93M
Cash, Cash Equivalents and Short-Term Investments	13.22M	28.58M	118.55M	11.20M	120.27M	96.83M
Total Debt	155.23M	85.83M	32.90M	2.91M	58.01M	43.28M
Total Liabilities	175.24M	107.89M	55.64M	30.74M	81.36M	60.49M
Stockholders Equity	565.00M	558.42M	542.40M	528.39M	516.33M	500.45M
Cash Flow
Free Cash Flow	-86.29M	25.35M	-44.93M	-56.70M	-124.43M	-59.86M
Operating Cash Flow	-14.78M	51.89M	-34.74M	-44.48M	-40.38M	-57.18M
Investing Cash Flow	-67.83M	-180.19M	129.37M	9.49M	100.62M	28.88M
Financing Cash Flow	66.15M	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: Positive
• 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 116.18, above the 50-day MA of 117.39, and above the 200-day MA of 122.34, indicating a bearish trend. The MACD of -2.60 indicates Positive momentum. The RSI at 44.71 is Neutral, neither overbought nor oversold. The STOCH value of 48.51 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	₹9.65B	36.02	―	―	31.04%	6468.72%
MIRZAINT	62 Neutral	₹4.07B	-17.45	―	―	-15.05%	-18.55%
BANARBEADS	60 Neutral	₹743.26M	36.18	―	1.72%	-22.27%	-42.61%
JAIPURKURT	60 Neutral	₹546.38M	54.59	―	―	37.68%	-67.76%
SUPERHOUSE	57 Neutral	₹1.54B	30.80	―	0.55%	9.09%	-60.38%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
LIBERTSHOE	52 Neutral	₹4.22B	200.89	―	―	―	―

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.