The shares of the gold jewelry manufacturer gained up to 5 percent after the company board approved the issue of bonus shares in the ratio of 9:1.
Sky Gold Ltd has a market capitalization of Rs 4,896.27 crore, the shares of Sky Gold Ltd were trading at Rs 3,341.25 per share, decrease around 3%, as compared to the previous closing price of Rs 3,434.35 apiece.
Reason for rise:-
According to the company filing, the Sky Gold Ltd board approved the issue of bonus shares at a ratio of 9:1 which means 9 new bonus equity shares of Rs. 10 each for every 1 existing equity share of Rs. 10 each fully paid up to the eligible shareholders of the company as on the record date.
Financial performance:-
The company’s revenue saw a 92% rise, growing from ₹376 crore in Q1 FY24 to ₹723 crore in Q1 FY25. Net profit surged by 91%, shifting from ₹11 crore to ₹21 crore, reflecting strong revenue and profitability growth.
The company’s gross margin for the quarter was 6.4%, expected to reach 7-8% through a better product mix and increased exports. EBITDA doubled to Rs 37.3 crores from Rs 18.6 crores, with an EBITDA margin of 5.2%, reflecting strong margin growth.
Industry Insight:-
The jewelry market is experiencing strong growth, expanding at 15%-16% annually, and is projected to reach INR 145 billion by 2028. The organized segment, growing at 18%-19%, benefits from rising disposable incomes and enhanced consumer experiences, further boosting industry prospects.
Government announcements on import duty reductions are positively influencing the jewelry sector by lowering raw material costs. This change makes gold jewelry more affordable and accessible, driving demand and enabling companies to offer competitive pricing, thus further stimulating market growth.
Strategic Initiatives:-
The company derives 65% of its business from corporate clients, aiming for 100% corporate business within three years. Recent acquisitions of Star Mangalsutra Pvt. Ltd. and Sparkling Chains Pvt. Ltd. have expanded its total addressable market to 65%, enhancing product diversity.
Production and Capacity:-
The company’s monthly production turnover increased to 349 kgs, up from 270 kgs last quarter and 200 kgs a year prior. Current capacity utilization is at 45% (excluding recent acquisitions), with plans underway to boost production and maximize capacity utilization.
Financial Guidance and Future Outlook:-
The company targets Rs 6,300 crore revenue by FY27, aiming for Rs 2,700 crore from the parent company and Rs 500-600 crore from subsidiaries in FY25. Achieving Rs 5,000 crore in revenue by the end of 2026 is expected to drive positive cash flow.
A planned Rs 270 crore fundraising will support inventory expansion, R&D, and entry into diamond jewelry and 18-carat segments. These strategic investments are expected to enhance the product portfolio, catering to diverse market demands and supporting long-term growth.
Company profile:-
Sky Gold Limited designs, manufactures, and markets gold jewelry. The company operates on a B2B basis, with items mostly marketed to mid-range jewelers and boutique retailers, which sell them via online platforms and retail storefronts.
Written by:-Abhishek Singh
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