Examining the financial trend, Sky Industries recorded its highest quarterly net sales at ₹24.89 crores, accompanied by a peak PBDIT of ₹3.11 crores. The operating profit margin relative to net sales reached 12.49%, while profit before tax excluding other income stood at ₹2.28 crores. These figures reflect a positive trajectory compared to the previous three months, where the financial trend was flat. However, certain metrics such as the dividend payout ratio at 12.90% and the debtors turnover ratio at 5.80 times indicate areas where operational efficiency remains constrained.
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On the valuation front, Sky Industries’ metrics suggest an attractive profile relative to its peers. The price-to-earnings ratio stands at 13.96, supported by a price-to-book value of 1.55. Enterprise value to EBITDA is recorded at 9.18, while the enterprise value to capital employed ratio is 1.44. Return on capital employed (ROCE) is noted at 12.28%, with return on equity (ROE) at 11.07%. Dividend yield remains modest at 1.08%. These valuation indicators position the stock favourably within its industry, especially when compared to competitors such as Sterling Tools and Simm. Marshall, which exhibit higher PE ratios and EV/EBITDA multiples.
Technically, the trend for Sky Industries has shifted from bearish to mildly bearish. Weekly MACD readings suggest a mildly bullish stance, whereas monthly MACD and Bollinger Bands indicate a mildly bearish outlook. The relative strength index (RSI) on both weekly and monthly charts does not signal a definitive trend. Daily moving averages and the KST indicator reflect a mildly bearish to bearish sentiment. Dow Theory analysis shows no clear trend on weekly or monthly timeframes. Price action today ranged between ₹91.00 and ₹93.75, with the current price at ₹92.52, marking a 3.79% change from the previous close of ₹89.14.
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Looking at returns, Sky Industries has delivered mixed performance over various time horizons. The stock returned 1.21% over the past week and 2.72% over the last month, outperforming the Sensex’s respective returns of 0.96% and 0.86%. However, year-to-date and one-year returns show a decline of -46.21% and -40.65%, respectively, contrasting with Sensex gains of 8.36% and 9.48%. Over longer periods, the stock has generated 3.14% over three years, 167.79% over five years, and 323.63% over ten years, though these figures trail the Sensex’s 37.31%, 91.65%, and 232.28% returns for the same durations.
Despite recent positive quarterly financial results, the company’s long-term fundamentals remain subdued, with a compound annual growth rate (CAGR) of 4.72% in net sales over the past five years. Profitability has also seen a contraction, with profits falling by 13.3% over the last year. These factors contribute to the overall assessment of Sky Industries’ investment profile within the Garments & Apparels sector.
Majority ownership remains with promoters, underscoring stable shareholding patterns. The stock’s 52-week price range spans from ₹80.10 to ₹173.50, indicating significant volatility within the past year. Investors should weigh these factors alongside the recent adjustment in the company’s evaluation metrics.
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