This high-growth profitable Jewellery stock has given returns of over 2,000 percent in 2 years from January of 2023 to January of 2025. And the ever-growing demand for jewelry in India is showing no signs of slowing down, even after the recent surge in gold prices.
Stock Movement of 2 Years
Sky Gold was listed on the main board of NSE & BSE in January of 2023, shifting from the BSE SME platform. Since listing in the mainboard stock had given a return of 2021 percent, going from Rs. 23 to Rs. 488. Currently, the stock is trading at Rs. 325, a discount of 33 percent from its 52-week high.
Business Highlights
The company has a manufacturing facility of 81,000 sqft, with a manufacturing capacity of 9 tonnes per year, and is available in 2000 retail outlets across India & globally it has over 500 outlets.
To expand its capacity, the company has acquired Sparkling chians private limited & Starmangalsutra private limited. Both the companies sparkling and star will enable the company to foray into fast-moving segments of jewelry like chains and established mangalsutra business. The pre-acquisition capacity of the company was 750 Kg/month, with 2 lakh live designs post the acquisition capacity has increased to 1,050 Kg/month with 2.012 Lakh live designs.
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Sky Gold Vision 2.0
The company has given a guidance of Rs 6,300 Crore revenue by FY27 with a capacity utilization of 1,050 Kgs per month, a PAT Margin of 3 percent, and ROCE of over 25 percent. The company has taken some key initiatives to fulfill its FY27 guidance. Some of the initiatives taken are Capital infusion of Rs. 128 Crores, support for increased working capital requirement , having high liquidity for their high growth, and strengthening of the management team & Regional Sales team.
Financial Highlights
The company reported a 116.95 percent YoY increase in revenue from Rs. 460 Crore in Q3FY24 to Rs. 998 Crore in Q3FY25. On a QoQ basis, the company reported an increase of 29.77 percent in revenue from Rs. 769 Crore in the previous quarter.
Their Net profit saw an increase of 311.11 percent YoY from Rs. 9 Crore to Rs. 37 Crore for the same period. On a QoQ basis, Net profit remained same at Rs. 37 Crore.
About the Company
Sky Gold and Diamonds Limited, formerly known as Sky Gold Limited, is an Indian company specializing in the design, manufacture, and marketing of gold and silver jewelry. Established in 2008 and headquartered in Navi Mumbai, Maharashtra, the company offers an extensive range of jewelry products, including necklaces, rings, pendants, bracelets, earrings, and bangles, catering to various customer preferences.
Written By Abhishek Das
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