Goldkart JewelsNSE:GOLDKART 61 Degree of Financial Leverage is 2.51 as of Mar. 2025. GuruFocus rates NSE:GOLDKART with a GF Score™ of 61/100 and a GF Value™ of ₹104.42 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,092 Retail - Cyclical companies, Goldkart Jewels ranks worse than 88.19% on this metric.
Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Goldkart Jewels's Degree of Financial Leverage for the quarter that ended in Mar. 2025 was 2.51. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Goldkart Jewels's Degree of Financial Leverage or its related term are showing as below:
NSE:GOLDKART's Degree of Financial Leverage is ranked worse than 88.19% of 1092
companies
in the Retail - Cyclical industry
Industry Median: 1.03
vs NSE:GOLDKART: 2.51
Goldkart Jewels (NSE:GOLDKART) Degree of Financial Leverage Explanation
Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.
The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.
Be Aware
The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.
Goldkart Jewels Degree of Financial Leverage Related Terms
Goldkart Jewels Degree of Financial Leverage Historical Data
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The historical data trend for Goldkart Jewels's Degree of Financial Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Goldkart Jewels Degree of Financial Leverage Chart
NSE:GOLDKART vs TPR: Degree of Financial Leverage Comparison
For the Luxury Goods subindustry, Goldkart Jewels's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Goldkart Jewels Degree of Financial Leverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Goldkart Jewels's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Goldkart Jewels's Degree of Financial Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Financial Leverage of 2.51 mean?
Goldkart Jewels (NSE:GOLDKART) has a Degree of Financial Leverage of 2.51 as of Mar. 2025. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Goldkart Jewels and its competitors. According to the industry distribution chart, Goldkart Jewels ranks #963 out of 1092 companies in the Retail - Cyclical industry, placing it in the top 88.2%.
Is Goldkart Jewels' Degree of Financial Leverage too high?
Goldkart Jewels' current Degree of Financial Leverage is 2.51. The Retail - Cyclical industry median Degree of Financial Leverage is 1.03. Goldkart Jewels' value of 2.51 is 143.7% above this industry median. Based on the distribution chart, Goldkart Jewels ranks #963 out of 1092 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Goldkart Jewels has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Goldkart Jewels' Degree of Financial Leverage compare to TPR?
According to the Retail - Cyclical industry distribution chart, Goldkart Jewels ranks #963 out of 1092 companies for Degree of Financial Leverage. This places Goldkart Jewels in the lower half of its industry. The industry median Degree of Financial Leverage is 1.03. Goldkart Jewels' value of 2.51 is 143.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Financial Leverage for a Retail - Cyclical company?
The median Degree of Financial Leverage among Retail - Cyclical companies is 1.03, based on 1,092 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Goldkart Jewels's current Degree of Financial Leverage of 2.51 is 143.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Goldkart Jewels and its competitors. For the Retail - Cyclical industry, the median Degree of Financial Leverage is 1.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Goldkart Jewels's current Degree of Financial Leverage is 2.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Goldkart Jewels stock overvalued right now?
Based on GuruFocus' analysis, Goldkart Jewels (NSE:GOLDKART) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹104.42, compared to a current price of ₹136.90 — trading 31.1% above its estimated fair value. The current Degree of Financial Leverage is 2.51 and 143.7% above the Retail - Cyclical industry median of 1.03. Goldkart Jewels' overall GF Score™ is 61/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For Goldkart Jewels (NSE:GOLDKART), the current Degree of Financial Leverage is 2.51 as of Mar. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Goldkart Jewels (NSE:GOLDKART) Overvalued in 2026?
Based on GuruFocus' analysis, Goldkart Jewels stock appears to be overvalued.
The current stock price of ₹136.90 is trading 31.1% above its estimated GF Value™ of ₹104.42.
GuruFocus considers Goldkart Jewels to be Significantly Overvalued.
Key valuation signals for NSE:GOLDKART:
Degree of Financial Leverage: 2.51
GF Value™: ₹104.42 vs. price of ₹136.90 (31.1% above fair value)
Industry Position: 143.7% above the Retail - Cyclical median (#963 of 1092)
No single metric tells the full story. See the NSE:GOLDKART stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Goldkart Jewels Ltd is engaged in the manufacturing and trading business. It manufactures gold and ornaments from gold bullion. The company also purchase gold ornaments, silver ornaments, silver utensils, diamond jewellery, platinum, and sale them. The Company is engaged in one business segment, namely the development of gold and Silver Ornaments.
61GF Score
Get the complete analysis for NSE:GOLDKART
Degree of Financial Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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