Sky Gold & Diam. (SKYGOLD)
Fast GrowerFairStock Score: 55/100 — STEADY
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹773.4 |
| Market Cap | ₹11,977.95 Cr |
| P/E Ratio | 35.59 |
| ROCE | 21.21% |
| ROE | 50.09% |
| Dividend Yield | 0% |
| Profit Growth | 124.2% |
| Debt/Equity | 0.72 |
| Sales Growth | 77.9% |
| Promoter Holding | 51.74% |
| 52-Week Range | ₹259 — ₹849.9 |
| Sector | Consumer Durables |
| Book Value | ₹77.36 |
Strengths
- Exceptional growth: sales up 77.13% and profit up 120.42%.
- High return on equity of 50.09% and ROCE of 21.21%.
- Piotroski F-Score of 7/9 suggests solid financial health.
- PEG of 0.25 indicates reasonable valuation if growth is sustained.
- Latest quarter shows strong momentum with ₹1,768 Cr sales and ₹81 Cr net profit.
Concerns
- Valuation is rich: P/E of 24.41 and P/B of 18.54 leave little margin of safety.
- Debt/Equity of 0.78 and zero dividend mean growth must keep funding itself.
- Jewellery industry is cyclical and highly sensitive to gold prices and demand shifts.
- Share price has been volatile: 52-week range of ₹259.00 to ₹840.00.
AI Analysis
When I look at Sky Gold & Diam., the numbers shout growth, but they also whisper caution. A 77% increase in sales and a 120% jump in profit are remarkable by any standard. Return on equity of 50.09% shows existing capital is being deployed efficiently, and ROCE of 21.21% is respectable. Yet I cannot ignore the price. At ₹411.65, with a book value of just ₹22.20, I am paying 18.54 times book for a company in a competitive, cyclical jewellery industry. The P/E of 24.41 is not outrageous for a fast grower, but it leaves little room for disappointment. The PEG of 0.25 suggests the market expects this growth to continue; Benjamin Graham would ask: can it endure? Jewellery demand is tied to gold prices, consumer sentiment, and discretionary spending — all unpredictable. Debt/equity of 0.78 is acceptable but not conservative, and with zero dividend, returns depend entirely on future earnings and share price. The latest quarter, with sales of ₹1,768 Cr and net profit of ₹81 Cr, is encouraging, but one quarter does not build a moat. Promoter holding of 51.74% is positive, but I would want evidence of honest capital allocation and sustainable margins. As a value investor, I would need a wider margin of safety before committing. This is a fast grower, but at this price, it is also a demanding one.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer