Lypsa Gems & Jewellery Ltd. (LYPSAGEMS) AI Stock Analysis

• Market Cap: ₹136.22M
• Dividend Yield: N/A
• Average Volume (3M): 12.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 1
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.03
• Shares Outstanding: 29,484,000
• 10 Day Avg. Volume: 4,922
• 30 Day Avg. Volume: 12,779
• PEG Ratio: 0.02
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 1.17
• P/FCF Ratio: -2.84
• 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: 46 Neutral
• Price Target: ₹4.50 ▼(-16.67% Downside)

The score is primarily constrained by weak financial performance—heavy losses, very thin margins, and negative/inconsistent cash generation—despite a rebound in revenue. Technicals are only mildly supportive in the short term and the longer-term trend remains weak, while valuation is pressured by a negative P/E driven by ongoing losses.

Positive Factors

Revenue momentum

FY2025 top-line rose 26.7% YoY, signaling recovering demand and distribution reach. Durable revenue momentum can support fixed-cost absorption, provide scale for negotiating supplier terms, and create runway to finance margin-restoring initiatives over the next several quarters.

Vertical value chain

The business participates across sourcing, processing/assorting and selling gemstones and jewellery in B2B/B2C channels. This structural positioning enables capture of upstream value, potential margin uplift from processing/design, and flexibility versus pure traders over a multi-month horizon.

Moderate leverage

Leverage around 0.79 with positive equity provides a capital buffer and some financial flexibility, reducing immediate insolvency risk. This balance-sheet headroom supports working capital funding or targeted investments while management focuses on restoring profitability over the medium term.

Negative Factors

Very weak profitability

Extremely thin gross margins and a deeply negative net margin indicate the company cannot sustainably convert sales into profits. Persistent losses erode shareholder equity, limit reinvestment capacity, and require structural changes to pricing, sourcing or product mix to restore durable earnings power.

Negative cash generation

Material negative operating and free cash flow (~-68.4M) and uneven historical cash generation reduce internal funding for inventory and growth. Ongoing cash burn increases reliance on external financing, heightening refinancing and liquidity risk if margins do not recover sustainably.

Rising debt & value erosion

Increasing debt alongside a very negative ROE (~-92%) signals shareholder value destruction and rising financial strain. Higher leverage narrows strategic flexibility, raises interest and covenant risks, and makes a durable turnaround contingent on rapid improvements in profit conversion and cash flow.

Lypsa Gems & Jewellery Ltd. Business Overview & Revenue Model

Company Description

Lypsa Gems & Jewellery Limited engages in the diamonds business in India. It makes, polishes, trades, imports, and exports diamonds, gems, and other precious stones. The company exports its products to the United States, Belgium, Israel, the United Arab Emirates, and Hong Kong. It serves small and mid-level diamond manufacturers. The company was formerly known as Maloo Gems & Jewellery Limited and changed its name to Lypsa Gems & Jewellery Limited in August 2011. Lypsa Gems & Jewellery Limited was incorporated in 1995 and is based in Mumbai, India.

How the Company Makes Money

Lypsa Gems & Jewellery Ltd. Financial Statement Overview

Summary

Despite strong FY2025 revenue growth (+26.7% YoY), profitability is extremely weak (thin ~2.5% gross margin and ~-91% net margin) with a large net loss. Cash flow also deteriorated, with negative operating and free cash flow (~-68.4M) and recent inconsistency. Balance sheet leverage is moderate (D/E ~0.79) but rising debt and very negative ROE (~-92%) signal elevated financial risk.

Income Statement

Revenue rebounded strongly in FY2025 (up 26.7% year-over-year), but profitability remains very weak. Gross margin stayed thin (~2.5%), and the company reported a large net loss in FY2025 with a deeply negative net margin (~-91%), following similarly severe losses in prior years. Overall, the income statement shows improving top-line momentum but no sustained earnings power and high volatility in results.

Balance Sheet

Leverage is moderate in FY2025 (debt-to-equity ~0.79) and equity remains positive, which provides some balance-sheet support. However, returns to shareholders are sharply negative (return on equity ~-92% in FY2025), reflecting that losses are eroding value and raising risk if profitability does not stabilize. Debt has also increased versus the prior year, reducing flexibility.

Cash Flow

Cash generation weakened materially in FY2025, with operating cash flow and free cash flow both negative (about -68.4M). The company also shows inconsistent cash flow over time (positive in FY2022–FY2023, negative in FY2024–FY2025), which reduces confidence in funding operations internally. With losses and negative operating cash flow in the latest year, liquidity pressure appears elevated.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	164.20M	166.88M	94.85M	131.94M	140.24M	84.11M
Gross Profit	3.57M	4.17M	3.87M	3.40M	3.33M	2.40M
EBITDA	-150.31M	-149.79M	-324.34M	-438.22M	1.59M	-256.56M
Net Income	-152.25M	-151.75M	-327.12M	-440.97M	-861.00K	-259.15M
Balance Sheet
Total Assets	0.00	654.95M	755.03M	1.19B	2.79B	2.87B
Cash, Cash Equivalents and Short-Term Investments	4.47M	4.47M	4.46M	4.73M	5.80M	4.14M
Total Debt	0.00	129.76M	61.36M	60.00M	133.85M	206.05M
Total Liabilities	-164.91M	490.04M	437.98M	554.27M	1.77B	1.88B
Stockholders Equity	164.91M	164.91M	317.06M	639.33M	1.02B	997.24M
Cash Flow
Free Cash Flow	0.00	-68.39M	-1.62M	72.77M	73.10M	-2.04M
Operating Cash Flow	0.00	-68.39M	-1.62M	72.77M	73.10M	-2.04M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00	2.05M
Financing Cash Flow	0.00	68.40M	1.36M	-73.85M	-72.19M	-19.00K

Lypsa Gems & Jewellery Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THANGAMAYL	66 Neutral	₹103.54B	43.07	―	0.37%	35.04%	80.12%
SENCO	66 Neutral	₹50.38B	20.09	―	0.31%	20.18%	16.17%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RAJESHEXPO	60 Neutral	₹48.41B	36.68	―	―	112.02%	244.77%
LYPSAGEMS	46 Neutral	₹136.22M	-0.90	―	―	―	―
GOENKA	41 Neutral	₹266.28M	-16.34	―	―	―	―

Lypsa Gems & Jewellery Ltd. Corporate Events

Lypsa Gems & Jewellery Confirms Full SDD Compliance for December Quarter

Lypsa Gems & Jewellery has submitted its Structured Digital Database (SDD) compliance certificate for the quarter ended December 31, 2025, in line with the Securities and Exchange Board of India’s Prohibition of Insider Trading Regulations, 2015. The company confirmed it maintains a non-tamperable internal digital database with controlled access, complete audit trails, and eight-year record-keeping capability, and that all unpublished price-sensitive information events during the quarter were properly captured with no instances of non-compliance. This disclosure underscores Lypsa’s adherence to insider trading norms, which is significant for governance standards and may reassure regulators and shareholders about the robustness of its compliance framework.