Ace investor Ashish Kacholia-backed gems and jewellery company, Sky Gold emerges as a multibagger giving more than 220% returns to its investors in less than 11 months of 2024. The stock is going to be in focus ahead for its 9:1 bonus issue.
Also, Sky Gold has recorded a strong growth in Q2FY25 net profit.
Sky Gold Share Price:
Last week, on November 14, Sky Gold stock price froze at 5% upper circuit to Rs 3259.20 apiece on BSE, with market cap of Rs 4,776.03 crore. The stock’s 52-week high and low is at Rs 3,687 apiece and Rs 828.85 apiece respectively. The stock currently has one of the strongest return on equity at 32.63%.
Meanwhile, in six months, Sky Gold shares have advanced by a whopping 159% on BSE so far. Year-to-date, the surge is massive by 227.03% on the exchange. Sky Gold stock was merely at Rs 993.25 apiece at the start of January 2024.
As per the reports, Ashish Kacholia is an investor in the Bengal Finance and Investment Pvt Ltd who is among the top public shareholders of Sky Gold. As of September 30, 2024, the data on shareholding patterns on BSE showed that Bengal Finance owns about 2,52,900 equity shares or a 1.73% stake in Sky Gold.
Sky Gold Bonus Issue:
Sky Gold earlier in October month announced the issuance of Bonus Shares in the ratio of 9:1 i.e. 9 (Nine) New Bonus Equity Shares of Rs. 10/- each for every 1 (One) Existing Equity Share of Rs. 10/- each fully paid up to the eligible Shareholders of the Company as on the Record Date, subject to the approval of the Shareholders and other statutory/regulatory approvals, consents, permissions, conditions, and sanctions, as required.
The record date for the 9:1 bonus issue is yet to be announced. However, the company has revealed that it plans to issue about Rs Rs. 1,33,89,19,290/- consisting of 13,38,91,929 equities as bonus shares.
Sky Gold aims to finish its bonus issuance within two months from the date of the Board approval i.e. on or before 24th December 2024.
Sky Gold Earnings:
Last week, on November 15, Sky Gold announced its net profit recorded growth of 405.2% YoY to Rs 36.7 crore in Q2FY25, while its EBITDA skyrocketed by 154.3% YoY to Rs 38.8 crore. Revenue from operations stood strong at Rs 768.8 crore, recording a growth of 94.2% YoY.
In the quarter, the company raised about Rs 270 crore through a Qualified Institutional Placement (QIP) from renowned funds like Motilal Oswal Small Cap Fund, Kotak Mahindra Life Insurance and Bank Of India Flexi Cap among others. Also, the company added CaratLane and P N Gadgil Jewellers to its client portfolio, while its manufacturing margin-accretive 18-carat gold and diamond jewellery.
Sky Gold Ltd Outlook:
The company said its scaling of acquired companies i.e., Sparkling Chains and Starmangalsutra to achieve target sales of Rs. 500 crore by Q4FY25.
Looking ahead, Mangesh Chauhan, Managing Director and Chief Financial Officer said, “We’re optimistic about meeting our FY27 revenue goal of Rs. 6300 Cr, with the festive and wedding seasons in the December quarter which is set to be a period that traditionally sees peak jewellery sales and is exceptionally strong for corporates and suppliers. We anticipate 25-30% growth at the retail level.”
Chauhan added, “Together, India and China account for over half of global gold demand, but in India, gold holds deep cultural significance, symbolizing prosperity and tradition. India’s jewellery retail market, historically dominated by small, unorganized players, is evolving, presenting significant opportunities for our company as consumer preferences shift toward branded, quality-driven offerings.”
Sky Gold is positioning itself for long-term growth by embracing digital automation and optimizing cost efficiency in its production lines. With a strong management and leadership team, the company is set to build on its momentum and drive sustained value in the coming quarters, as per the filing.
About Sky Gold Limited:
Established in 2008, Sky Gold Limited (SGL) is one of the leading jewellery companies based in Mumbai. The Company specializes in lightweight jewellery of 18 & 22 Carat gold, manufacturing a variety of designs including plain gold jewellery, studded gold jewellery, diamond-studded jewellery, and Turkish jewellery. Operating on a B2B model, Sky Gold collaborates with leading jewellery retailers like Malabar Gold and Diamonds, Joyalukkas, Kalyan Jewellers, CaratLane, GRT Jewellers, and Senco Gold, making its products available in over 2000 showrooms across India.
