Sky Gold & Diam. (SKYGOLD)

FairStock Score: 55/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer