This Smallcap Jewellery stock, which is in the business of manufacturing, designing, and marketing gold jewellery hit a 5 percent upper circuit after the company reported a net profit increase of 405 percent.
Price Movement
In Thursday’s trading session, Sky Gold Limited stock hit a 5 percent upper circuit in the day’s trade after the company reported a net profit increase of 405 percent. The stock has delivered a return of around 267 percent in the past year outperforming the Nifty Index in the same period. The stock opened at Rs. 3,259.20 and stayed at the upper circuit limit which is 5 percent higher from the previous closing price of Rs. 3,104 per share.
What happened
Such a bullish movement in the scrip price was a result of an earnings update released by the company. The company posted a significant improvement in net profits and a jump in revenue in Q2FY25.
According to its recent filing, In Q2FY25, Sky Gold Ltd reported a 94 percent increase in revenue to Rs.769 crore in Q2FY25, compared to Rs.396 crore in Q2FY24. Furthermore, quarterly, the company saw an increase of 6.3 percent in revenue from Rs.723 crore in Q1FY25.
In the same period, the company reported a significant increase in net profit of 405 percent to Rs.36.71 crore in Q2FY25, up from Rs.7.26 crore in Q2FY24 and a 73 percent increase from Rs.21.22 crore in Q1FY25.
In terms of return ratios, return on capital employed (ROCE) is currently at 18.77 percent, while return on equity (ROE) is at 23.66 percent. The company has a current ratio of 16.27 and a debt-to-equity ratio of 1.33.
Also read….
Shareholding Pattern
As of 17th October 2024, the shareholding pattern includes promoters holding a major share of 58.24 percent stake in Sky Gold, Foreign Institutional Investors (FII) holding around 1.38 percent, Domestic Institutional investors (DII) standing at 6.31 percent, and public holdings standing at 34.07 percent.
Revenue Segment
According to the company’s quarterly September 2024 report, they considered revenue from Gold Jewellery manufacturing as of Q2FY25.
About the company
Sky Gold Limited was established in 2008 and based in Thane, Maharashtra which specializes in designing, marketing, and manufacturing gold jewellery. The company offers a diverse range of products including rings, necklaces, bracelets, and earrings, often featuring American diamonds and colored stones. Sky Gold primarily operates on a B2B model, supplying mid-range jewelers and boutique stores.
With annual revenues exceeding INR 500 crore and an EBITDA growth of 79%, they focus on catering to various market segments by providing customized designs for both special occasions and everyday wear, improving their competitive edge in the jewelry industry. Recently, the company has raised Rs. 270 crore through qualified institutional placement and this can further strengthen its balance sheet and increase confidence in the business.
Written by Santhosh S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
