Shares of this smallcap company locked a 5 percent upper circuit in Thursday’s trading session after reporting an increase in net profits by 124 percent YoY. The shares have delivered a multi-bagger return of 196 percent to its shareholders in one year.
With a market capitalization of Rs. 1,635 crores, the shares of Sky Gold Ltd started Thursday’s trading session on a flatter note at Rs. 1,172 compared to its previous close of Rs. 1,173.90. During the trading session, the shares clocked 5 percent upper circuit at Rs. 1,232.55 apiece.
Such a bullish movement in the share price was observed after the company announced quarterly and financial year ended on 31st March 2024 results. Quarterly, the revenue jumped 11.4 percent from Rs. 460.44 crores during the December quarter to Rs. 513.37 crores in the March quarter. In addition, the net profits zoomed by 52 percent from Rs. 8.93 crores to Rs. 13.61 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue surged by 90 percent from Rs. 269.91 crores during Q4FY23 to Rs. 513.37 crores in Q4FY24. On the other hand, the net profits magnified by 124 percent from Rs. 6.08 crores to Rs. 13.61 crores during the same timeframe.
The company mainly deals in 22 Karat gold jewellery, offering a wide variety of designs to suit the preferences of the end customer. They provide an extensive range of designs and also use studded American diamonds and/or coloured stones in many of their jewellery products.
The company has reputed clients like Malabar Gold, Joyalukkas, Senco, Khazana Jewellers, Khimji, Kalyan Jewellers, GRT, Istaara and many more.
As per the latest data, by 2030 the company plans to double Product designs per month from 3000 to 7000 and also double the number of designers from 100 to 200 to 250. Also, the company wants to expand to SEA, MEA and the USA and add White Gold, Studded (Natural diamond and ruby emerald), and Platinum in its metal basket.
According to the BSE data, Ace Investor Mr Ashish Kacholia, entered the stock in December 2023 and currently holds over 4.04 lakh equity shares equivalent to a 3.05 percent stake in this company. The current holding value of his investment amounts to Rs. 49.9 crores.
Headquartered in Mumbai, Sky Gold was incorporated in 2008. The company is engaged in the business of designing, manufacturing, and marketing gold jewellery. It follows a B2B model where the products are mainly sold to mid-range jewellers and boutique stores that sell these products through online platforms and retail stores.
Written By Vaibhav Patil
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