This Jewellery stock is engaged in the business of designing, manufacturing, and marketing gold jewellery, in focus after the company revised its revenue guidance to ₹7,200 crores for FY27.
Stock Price Movement:
With a market capitalization of Rs. 5,421.98 crores, the share of Sky Gold Limited has reached an intraday high of Rs. 377 per equity share, rising nearly around 1.63 percent from its previous day’s close price of Rs. 370.95. Since then, the stock has retreated and is currently trading at Rs. 370 per equity share.
Management Guidance:
The company has revised its revenue guidance to Rs. 5,700 crores for FY26 and Rs. 7,200 crores for FY27, driven by new client acquisitions, including P.N. Gadgil. The company expected PAT margins for FY27 are between 3.5-4 percent, with gross margins at 7 percent and EBITDA at 5.5 percent.
Additionally, the company has also updated its volume guidance for FY26 from 550-600 kg to 650-700 kg. For FY27, volumes are expected to exceed 1,050 kg. A new PPT guidance update will be released soon, reflecting these revised projections and strategic plans for future growth.
Strategic Initiatives:
The company is focusing on onboarding clients who supply raw materials, which will help reduce capital employed and improve Return on Capital Employed (ROCE). Additionally, it aims to convert 70-80 percent of its overall debt into Gold Metal Loans (GML), a strategy to lower finance costs and enhance profitability.
Capacity Expansion Plans:
The company plans to build a new facility after FY27 to meet growing client demands and production needs. Currently, the production capacity is 1 ton per month, but the company aims to expand this to 4 tons per month to accommodate future growth and increased orders.
Company Overview:
Sky Gold Limited was incorporated in 2008 and is based in Mumbai. The company specializes in designing, manufacturing, and marketing gold jewelry. The company produces a variety of jewelry types, including lightweight 22-carat gold pieces, studded jewelry, and Turkish designs. Sky Gold has a significant design library with over 500,000 unique designs and caters to regional tastes across India.
Recent quarter results and ratio:
Sky Gold Limited’s revenue has increased from Rs. 460 crore in Q3 FY24 to Rs. 998 crore in Q3 FY25, which has grown by 116.96 percent. The net profit has also grown by 311.11 percent from Rs. 9 crore in Q3 FY24 to Rs. 37 crore in Q3 FY25.
Sky Gold Limited’s revenue and net profit have grown at a CAGR of 49 percent and 53.39 percent, respectively, over the last two years.
In terms of return ratios, the company’s ROCE and ROE should be 18.6 percent and 23.2 percent, respectively. Sky Gold Limited’s EPS stands at Rs. 7.81.
Written By – Nikhil Naik
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