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Golkunda Diamonds & Jewellery Ltd. — Peer Comparison

How the peer fair value is calculated and which companies were used as benchmarks.

Peer selection

Peers are selected from the same Jewellery industry. 8 companies were matched as valid comparables.

Same-industry peers share similar business models, cost structures, and growth prospects — making them the most appropriate benchmarks for valuation multiples.

Peer comparison table

Jewellery · 8 peers · sector medians shown

Better than medianWorse than median

Company	Mkt Cap	P/E	P/B	EV/EBITDA	ROE	Net Margin	Rev CAGR 3y
Golkunda Diamonds & Jewellery Ltd. GOLKUNDIA · you	₹200 Cr	12.8×	3.5×	—	27.3%	0.1%	—
Sector median	—	17.0×	2.7×	9.0×	13.8%	1.4%	10.4%
Khazanchi Jewellers Limited KHAZANCHI	₹1,961 Cr	21.9×	—	—	—	—	—
Shanti Gold International Limited SHANTIGOLD	₹1,747 Cr	12.0×	3.1×	8.6×	23.4%	6.9%	43.8%
Tribhovandas Bhimji Zaveri Limited TBZ	₹1,677 Cr	7.9×	2.7×	—	33.9%	0.0%	—
Motisons Jewellers Limited MOTISONS	₹1,638 Cr	22.5×	2.9×	18.7×	12.8%	13.0%	10.2%
Renaissance Global Limited RGL	₹1,326 Cr	46.3×	2.1×	—	4.6%	0.0%	—
Asian Star Company Limited ASTAR	₹960 Cr	23.8×	0.6×	9.4×	2.4%	1.4%	-13.7%
Radhika Jeweltech Limited RADHIKAJWE	₹818 Cr	10.3×	2.8×	—	27.5%	0.1%	—
Manoj Vaibhav Gems N Jewellers Limited MVGJL	₹756 Cr	6.6×	0.9×	3.5×	13.8%	4.2%	10.6%

Peer comparison verdict

Golkunda looks attractively valued — trading at a discount to sector peers on P/E (12.8× vs sector median 17.0×) while delivering above-average returns on equity (27.3% vs 13.8%).

How the peer fair value is calculated

Three valuation methods are weighted by sector. Each gives a fair value based on how sector peers are currently priced.

Method breakdown

35% weight · 8 peers

Sector median PE17.0×

Fair value via PE₹381

25% weight · 7 peers

Sector median PB2.7×

Fair value via PB₹219

EV/EBITDA

40% weight · 4 peers

Sector median EV/EBITDA9.0×

Fair value via EV/EBITDA—

Blended peer fair value₹313

Why median? Why these weights?

Median over mean: The sector median is used instead of the average because valuation multiples have extreme outliers — one high-growth company at 200× P/E would dramatically skew a mean. The median gives the middle value in the peer set, which better represents typical pricing.

Sector-specific weights: The weight given to each method reflects what matters most in this sector. For banks, P/B dominates because their value is tied to book assets. For IT companies, P/E carries the most weight because earnings quality matters more than asset base. For capital-intensive businesses, EV/EBITDA accounts for varying debt levels across peers and removes financing structure bias.

Limitations of peer comparison

Peer comparison assumes comparable companies are truly comparable — which is never perfectly true. Sector classifications can be imperfect: a conglomerate classified as "IT" may also have significant manufacturing revenue. Small peer counts (below 5) reduce confidence, as a single outlier can skew the sector median. When the entire sector is broadly expensive, peer comparison will show even an expensive stock as "fairly valued" relative to its peers.

The peer fair value shown is an algorithmic estimate based on publicly available financial data. It is not investment advice or a recommendation to buy, sell, or hold any security. Please consult a SEBI-registered investment adviser before making any investment decision.