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This small-cap Jewellery Stock, engaged in designing, manufacturing, and exporting high-end gold and diamond jewellery, catering to both domestic and international markets with innovation, is in focus after management aims for Rs. 7,600 crore revenue and Rs. 340 crore PAT growth in FY27.

With a market capitalization of Rs. 4,661.35 crore, the shares of Sky Gold and Diamonds Limited were currently trading at Rs. 317.75 per equity share, up nearly 1.34 percent from its previous day’s close price of Rs. 313.55. 

Guidance: Sky Gold and Diamonds Limited has shared its business guidance for the coming years. The company expects its revenue to grow from Rs. 3,548 crore in FY25 to Rs. 5,400 crore in FY26, and further to Rs. 7,600 crore in FY27 (higher than the earlier Rs. 7,200 crore estimate), representing a growth of approximately 114 percent compared to FY25.

Currently, diamonds contribute just 1 percent of total revenue, but the company aims to increase this to 4 percent by FY27. It also plans to grow its advanced gold segment to 10 percent of revenue by FY27 and 30 percent by FY29–30. 

Additionally, the company has guided for a net profit (PAT) of Rs. 340 crore in FY27, representing a growth of approximately 156 percent compared to FY25, with a PAT margin of 4 percent in FY26, 4.5 percent in FY27, and a long-term goal of 5 percent. EBITDA margin is expected to reach 6.2–6.3 percent in FY27. 

Furthermore, Export volumes are targeted to form 20 percent of the total by FY27. The company also plans to improve its working capital cycle to under 55 days and aims to generate positive operating cash flow by FY27.

Sky Gold and Diamonds Limited was founded in 2005 and is an Indian company primarily engaged in the designing, manufacturing, and marketing of gold jewelry, operating mainly on a B2B model where products are sold to mid-range jewelers and boutique stores that retail both online and offline. Sky Gold and Diamonds Limited offers a wide range of high-end fashion jewelry, including necklaces, earrings, bracelets, and rings, mainly crafted in 22 KT gold. 

The company has a strong global presence, exporting its products to Asia, the Middle East, Europe, the UK, the US, and Australia, showcasing a perfect mix of craftsmanship and innovation.

Sky Gold and Diamonds Limited has a strong production and retail footprint. The company operates with a robust manufacturing capacity of 12.6 tonnes per year. Its products are widely available, with a presence in over 2,000 retail outlets across India and more than 500 outlets globally, ensuring strong market reach and customer accessibility.

Coming into financial highlights, Sky Gold and Diamonds Limited’s revenue has increased from Rs. 513 crore in Q4 FY24 to Rs. 1,058 crore in Q4 FY25, which has grown by 106.24 percent. The net profit has also grown by 171.43 percent, from Rs. 14 crore in Q4 FY24 to Rs. 38 crore in Q4 FY25. Sky Gold and Diamonds Limited’s revenue and net profit have grown at a CAGR of 65.27 percent and 98.52 percent, respectively, over the last three years.

In terms of return ratios, the company’s ROCE and ROE stand at 23.4 percent and 28.6 percent, respectively. Sky Gold and Diamonds Limited has an earnings per share (EPS) of Rs. 9.04, and its debt-to-equity ratio is 0.92x.

Written By – Nikhil Naik

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