Shares of this gold jewellery manufacturing company clocked 20 percent upper circuit in Tuesday’s trading session after announcing the quarterly results. The shares have delivered more than 80 percent returns in six months to its shareholders.
With a market capitalisation of Rs. 132 crores, the shares of Golkunda Diamonds & Jewellery Ltd started Tuesday’s trading session on a higher note at Rs. 189 compared to its previous close of Rs. 158.20. Within a few minutes of the opening bell, the shares clocked an upper circuit at Rs. 189.80, also recorded as the company’s fresh 52-week high.
Such a bullish movement in the share price was observed after the company in an exchange filing announced its quarterly results. The company’s revenue increased by 14 percent from Rs. 44.45 crores during Q2FY24 to Rs. 50.45 crores in Q3FY24. In addition, the net profits zoomed by 95 percent from Rs. 1.63 crores to Rs. 3.19 crores during the same timeframe.
Comparing these metrics on a YoY basis, the revenue declined by 10 percent from Rs. 55.86 crores during Q3FY23 to Rs. 50.45 crores in Q3FY24. On a contrasting note, the net profits zoomed by 45 percent from Rs. 2.20 crores to Rs. 3.19 crores during the same period.
The company has a unit in Mumbai with a manufacturing capacity of 15,000 units per month from more than 25,000 design banks. Furthermore, the company churns out 500 new designs every month.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 21.81 percent during FY 21-22 to 22.86 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 17.08 percent to 18.30 percent during the same timeframe. Furthermore, the net profit margin increased from 3.10 percent during FY21-22 to 4.04 percent during FY22-23.
Headquartered in Mumbai, Golkunda Diamonds & Jewellery was incorporated in 1990. The company manufactures diamond-studded gold jewellery and exports it to customers worldwide. It has expertise in products set in rounds, baguettes jewellery and makes jewellery from big-sized necklaces, and pendants to small stud earrings and rings.
Written By Vaibhav Patil
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