1. At a Glance
Sky Gold & Diamonds Ltd is a ₹4,738 Cr B2B gold jewelry manufacturer with a design-obsessed, scale-hungry model. In FY25, it hit ₹3,548 Cr in revenue and ₹133 Cr in PAT — up 4X from FY22. The company runs a lean export-driven playbook with 80 in-house designers, 3 lakh SKUs, and zero retail shops. Basically, a gold factory in beast mode.
2. Intro with Hook
What if we told you there’s a jewelry company:
- That added ₹2,800 Cr in sales in 3 years 💰
- With a 23.4% ROCE
- That doesn’t run a single showroom 🏬
- But just acquired a bangle maker for ₹225 Cr
- Oh, and recently entered Dubai
Sky Gold isn’t shining, it’s blinding.
3. WTF Do They Even Do? (Business Model)
Sky Gold is a B2B jewelry powerhouse. They design, manufacture, and supply ready-to-sell gold ornaments to:
- 💎 Mid-sized retailers
- 🏬 Boutique stores
- 📦 Online marketplaces (via clients)
🪙 Core Segment: 22K Gold Jewellery
💡 14 Product Categories
🧠 80-member design team
🎯 2000–2500 new designs/month
🧾 3,00,000+ SKUs
🇮🇳 Made in India → Sold to the world
No retail drama, no brand-building headaches. Just scale + design + volume.
4. Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue | ₹786 Cr | ₹1,154 Cr | ₹1,745 Cr | ₹3,548 Cr |
| Net Profit | ₹17 Cr | ₹19 Cr | ₹40 Cr | ₹133 Cr |
| OPM | 3% | 3% | 4% | 6% |
| ROE | — | 19% | 21% | 29% |
| ROCE | — | 17% | 19% | 23.4% |
📈 3-Year Sales CAGR = 65%
📈 3-Year PAT CAGR = 145%
This is not just growth. This is compound swagger.
5. Valuation – Is It Cheap, Meh, or Crack?
- CMP = ₹323
- EPS FY25 = ₹9.04
- P/E = 35.7x
- Book Value = ₹46.6 → P/B = 6.93
- ROE = 28.6%
🧮 Fair Value Range:
- Sustainable EPS = ₹9–10
- Fair P/E range = 25x–32x
- FV = ₹225 – ₹320
📍 CMP = ₹323 → Fully valued at current scale
🔭 But if margins hold at 6% and FY26 EPS crosses ₹12+, rerating possible.
6. What’s Cooking – News, Triggers, Drama
🚀 FY25 revenue doubled YoY
🏗️ ₹225 Cr share swap acquisition of Ganna N Gold (bangle factory)
🌍 Dubai subsidiary SKY SOUK for Middle East exports
🛫 Export order of 200 KG/month secured
🏢 Dubai B2B office + land acquired for expansion
💰 ₹224.9 Cr preferential issue at ₹369/share
📈 Capacity expansion 4X underway
In short: expansion, M&A, global push, and growth — all firing.
7. Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Total Liabilities | ₹175 Cr | ₹252 Cr | ₹586 Cr | ₹1,357 Cr |
| Borrowings | ₹92 Cr | ₹146 Cr | ₹310 Cr | ₹630 Cr |
| Reserves | ₹71 Cr | ₹87 Cr | ₹231 Cr | ₹537 Cr |
| Fixed Assets | ₹8 Cr | ₹9 Cr | ₹35 Cr | ₹106 Cr |
⚠️ Debt is rising but so is asset base. Company is leveraging smartly to fund growth.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY24 | ₹-138 Cr | ₹-106 Cr | ₹+239 Cr | ₹-5 Cr |
| FY25 | ₹-273 Cr | ₹-157 Cr | ₹+427 Cr | ₹-3 Cr |
🧪 Operating cash flow negative due to WC build-up.
🚨 Keep an eye on working capital stretch.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 23.4% ✅ |
| ROE | 28.6% ✅ |
| OPM | 6% ✅ |
| Debtor Days | 47 ⚠️ |
| Inventory Days | 44 |
| CCC | 88 days 🔍 |
| P/E | 35.7 |
| P/B | 6.93 |
🔥 Profitability ratios = Sexy
⚠️ Working capital cycle = Stretchy
10. P&L Breakdown – Show Me the Money
- Revenue: ₹3,548 Cr
- Op Profit: ₹196 Cr
- Other Income: ₹33 Cr
- Interest: ₹44 Cr
- PAT: ₹133 Cr
- EPS: ₹9.04
🎯 Net profit up 3.3x YoY.
📢 Key trigger: Operating leverage kicking in.
11. Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | OPM | Sales (Cr) | PAT (Cr) |
|---|---|---|---|---|---|
| Titan | 91x | 31.7% | 9.4% | ₹60,456 | ₹3,336 |
| Kalyan | 85x | 15.8% | 6.1% | ₹25,045 | ₹714 |
| PNG | 37x | 20.9% | 4.4% | ₹7,693 | ₹218 |
| Thangamayil | 50x | 14.9% | 4.5% | ₹4,910 | ₹119 |
| Sky Gold | 35.7x | 28.6% | 6% | ₹3,548 | ₹133 |
👑 ROE king of the midcaps. Only Titan beats Sky on brand — not on bottom-line efficiency.
12. Misc – Shareholding, Promoters, etc.
- Promoter Holding: Down from 73.5% → 58.18%
- FII Holding: Now 0.39%
- DII Holding: Up from 0 → 7.13% (Big green flag)
- Public: ~34.3%
- Shareholders: From 127 → 79,872 in 3 years
📉 Promoters diluted via preferential issues and M&A
📈 But DII entry = institutional confidence
13. EduInvesting Verdict™
Sky Gold is scaling like a startup, managing like a factory, and executing like a pro. From ₹786 Cr in FY22 to ₹3,548 Cr in FY25? That’s not jewelry — that’s alchemy.
💎 6% margins + 28% ROE
📈 3 lakh SKUs
🌍 Dubai gateway
🛠️ Vertical integration via M&A
Verdict: If Titan is the Louis Vuitton of Indian jewelry, Sky Gold is the Shein with a balance sheet.
✍️ Written by Prashant | 📅 11 July 2025
Tags: Sky Gold Ltd, B2B Jewellery Stocks, Dubai Expansion, SME to Midcap, Gold Export India, ROE 28%, Jewelry Manufacturing, Ganna N Gold Acquisition, EduInvesting
