Taka Jewellery Holdings Ltd. (42L) AI Stock Analysis

• Market Cap: S$102.93M
• Dividend Yield: 1.99%
• Average Volume (3M): 216.67K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.33
• Revenue Growth: 21.59%
• EPS Growth: 21.74%
• Country: SG
• Employees: 159
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.01
• Shares Outstanding: 565,506,000
• 10 Day Avg. Volume: 125,010
• 30 Day Avg. Volume: 216,670
• PEG Ratio: 0.23
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.36
• P/FCF Ratio: -3.64
• 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: 77 Outperform
• Price Target: S$0.21 ▲(49.29% Upside)

The score is driven primarily by strong financial performance (notably revenue growth and solid margins) and supportive technical uptrend signals. Attractive valuation (low P/E with a modest dividend) adds support, while negative operating and free cash flow temper the overall rating.

Positive Factors

Strong revenue growth

Sustained 23% revenue growth indicates robust demand and successful commercial execution. Over 2–6 months this supports unit economics, scale benefits and reinvestment capacity, reducing execution risk and enabling expansion of store, wholesale and online footprints.

Healthy gross and improving margins

A near-30% gross margin signals strong product pricing and favorable mix in jewellery, while improving EBIT/EBITDA margins reflect better cost control. These margins provide structural profit resilience, helping absorb commodity swings and support sustainable operating profitability.

Omnichannel, diversified revenue model

Balanced channels (physical retail, e-commerce and wholesale) plus supplier/designer partnerships create durable demand channels and lower single-channel concentration risk. This diversification supports customer retention, seasonal smoothing and long-term revenue stability.

Negative Factors

Negative operating and free cash flow

Operating and free cash flow deficits weaken the company’s ability to self-fund inventory, store expansion and working capital. Persisting negative cash generation increases reliance on external financing, raising refinancing and liquidity risk over the medium term.

Narrow conversion from gross to net profit

A wide gap between gross and net margins suggests material operating or SG&A costs that limit earnings conversion. This constrains free cash flow sensitivity to sales volatility and leaves less buffer against input cost inflation or softer demand.

Moderate leverage needs monitoring

A D/E of 0.57 is moderate but, combined with negative cash flow, reduces financial flexibility. If cash generation doesn’t improve, servicing and rolling debt could crowd out investment, increasing balance-sheet risk over the coming quarters.

Taka Jewellery Holdings Ltd. Business Overview & Revenue Model

Company Description

Taka Jewellery Holdings Limited, an investment holding company, engages in the design, manufacture, wholesale, and retail sale of jewelry in Singapore, the United States, Europe, rest of Asia, Africa, and Australia. The company operates through three segments: Exhibitions, Retail, and Financial Services. It retails and trades in pre-owned jewelry under the Top Cash brand. The company is also involved in the retail of secondhand jewelry; secured lending and pawnbroking business; and operation as a gold bullion broker and trader. It operates jewelry outlets under the Taka Jewellery brand; and pawnshops, as well as offers contemporary line of jewelry under Voi brand. The company was formerly known as TLV Holdings Limited. Taka Jewellery Holdings Limited was founded in 1997 is headquartered in Singapore.

How the Company Makes Money

Taka Jewellery Holdings Ltd. generates revenue primarily through the sale of its jewellery products across various channels. The company's key revenue streams include direct retail sales from its brick-and-mortar stores, e-commerce sales through its online platform, and wholesale distribution to third-party retailers. The company also benefits from strategic partnerships with suppliers and designers, which enhance its product offerings and brand visibility. Seasonal promotions, exclusive collections, and loyalty programs further contribute to customer retention and increased sales, resulting in a robust revenue model that capitalizes on both traditional and digital retail strategies.

Taka Jewellery Holdings Ltd. Financial Statement Overview

Summary

Strong revenue growth (23.26%) and healthy profitability (gross margin 29.56%, net margin 7.03%) support the score, while moderate leverage (debt-to-equity 0.57) keeps balance-sheet risk contained. The main offset is weaker cash-flow quality, with negative operating and free cash flow in the latest year.

Income Statement

Taka Jewellery Holdings Ltd. has shown strong revenue growth of 23.26% in the latest year, indicating a positive trajectory in sales. The gross profit margin is healthy at 29.56%, and the net profit margin is stable at 7.03%. EBIT and EBITDA margins have also improved, reflecting efficient cost management. However, the company should continue to focus on maintaining these margins amidst potential market fluctuations.

Balance Sheet

The company's debt-to-equity ratio stands at 0.57, which is moderate and indicates a balanced approach to leveraging. Return on equity is at 8.89%, showing decent profitability for shareholders. The equity ratio is strong, suggesting a solid financial structure. Continued attention to debt management will be crucial to maintain financial stability.

Cash Flow

The cash flow situation presents some challenges, with negative operating and free cash flows in the latest year. However, the free cash flow to net income ratio is positive, indicating that the company is generating cash relative to its net income. Improving cash flow from operations will be essential to support future growth and investment.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	144.77M	178.44M	146.76M	145.89M	104.27M	96.83M
Gross Profit	41.36M	52.75M	42.65M	42.30M	27.42M	21.94M
EBITDA	16.46M	23.69M	19.25M	18.47M	12.98M	9.43M
Net Income	8.12M	12.54M	10.32M	9.00M	5.88M	2.42M
Balance Sheet
Total Assets	204.84M	252.18M	212.34M	194.16M	170.83M	163.20M
Cash, Cash Equivalents and Short-Term Investments	14.46M	15.04M	9.89M	11.01M	11.23M	15.24M
Total Debt	58.19M	81.14M	56.53M	48.93M	37.68M	36.86M
Total Liabilities	79.99M	111.00M	82.55M	74.66M	60.29M	58.55M
Stockholders Equity	124.86M	141.17M	129.80M	119.49M	110.51M	104.61M
Cash Flow
Free Cash Flow	-3.58M	-17.51M	1.88M	-7.56M	2.01M	17.77M
Operating Cash Flow	-2.43M	-11.30M	2.77M	-4.84M	2.31M	17.88M
Investing Cash Flow	-537.00K	-2.21M	-888.00K	-1.52M	-367.00K	-88.00K
Financing Cash Flow	5.14M	15.99M	-416.00K	6.17M	-6.01M	-16.10M

Taka Jewellery Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:42L, the sentiment is Positive. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.14, and above the 200-day MA of 0.13, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 67.14 is Neutral, neither overbought nor oversold. The STOCH value of 73.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:42L.

Taka Jewellery Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
42L	77 Outperform	S$102.93M	8.21	9.26%	1.99%	21.59%	21.74%
AGS	75 Outperform	S$1.44B	9.66	16.22%	2.60%	11.37%	7.17%
T6I	74 Outperform	S$1.10B	10.78	18.70%	3.92%	20.97%	37.69%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%