Sky Gold & Diamonds Ltd Gains 16.42%: 6 Key Factors Driving the Surge

Feb 14 2026 11:04 AM IST
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Sky Gold & Diamonds Ltd delivered a remarkable weekly performance from 9 to 13 February 2026, surging 16.42% from Rs.319.50 to Rs.371.95, significantly outperforming the Sensex which declined 0.54% over the same period. The stock’s strong gains were driven by a combination of robust quarterly results, a technical momentum shift, and a valuation recalibration amid mixed market conditions.

Key Events This Week

Feb 9: Intraday high with 10.38% surge and Q3 FY26 profit jump of 120%

Feb 9: Upgraded to Buy by MarketsMOJO on strong financials and technical shift

Feb 12: Intraday high with 7.38% surge amid broader market weakness

Feb 13: Valuation shifts from attractive to fair amid strong price gains

Feb 13: Week closes at Rs.371.95, up 16.42% vs Sensex down 0.54%

Week Open
Rs.319.50
Week Close
Rs.371.95
+16.42%
Week High
Rs.383.60
vs Sensex
-0.54%

9 February: Intraday High and Stellar Quarterly Results Propel Stock

On 9 February 2026, Sky Gold & Diamonds Ltd surged impressively by 9.39% to close at Rs.349.50, reaching an intraday high of Rs.342 earlier in the session. This 10.38% intraday surge significantly outpaced the Sensex’s 1.04% gain and the Gems, Jewellery and Watches sector’s 2.19% rise, highlighting the stock’s standout momentum.

The day’s rally was underpinned by the company’s stellar Q3 FY26 financial results, which revealed a 120% surge in operating profit and a 53.68% increase in net profit. Net sales expanded at an annualised rate of 61.04%, reflecting strong demand and effective cost management. Despite these gains, concerns about growing debt were noted, adding a layer of caution to the otherwise positive outlook.

MarketsMOJO upgraded the stock’s rating from Hold to Buy on 6 February, citing improved financials and a shift to a mildly bullish technical trend. The Mojo Score stood at 77.0, reinforcing the positive sentiment. The stock traded above all key moving averages, signalling sustained upward momentum.

10 February: Profit Taking Leads to Correction

Following the sharp gains, the stock corrected on 10 February, falling 5.97% to close at Rs.328.65 amid lower volume. The Sensex continued its modest upward trend, gaining 0.25%. This pullback reflected profit booking after the prior day’s rally but did not significantly alter the stock’s positive technical setup.

11 February: Modest Recovery Amid Consolidation

On 11 February, Sky Gold & Diamonds Ltd recovered 1.87% to close at Rs.334.80, supported by subdued volume. The Sensex gained a marginal 0.13%. The stock’s trading above key moving averages and the weekly RSI turning bullish suggested growing buying interest despite mixed technical signals such as a bearish weekly MACD.

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12 February: Strong Intraday Surge Defies Market Weakness

Sky Gold & Diamonds Ltd rebounded strongly on 12 February, surging 9.81% intraday to a high of Rs.353.65 and closing at Rs.367.65, a 7.38% day gain. This performance was remarkable given the Sensex’s 0.56% decline that day. The stock outperformed its sector by 5.77%, extending a positive trend from the previous sessions.

Technical indicators remained supportive, with the stock trading above all major moving averages and maintaining a Mojo Score of 77.0. The sustained buying interest amid a broadly negative market highlighted the stock’s relative strength and resilience.

13 February: Valuation Recalibration Amid Continued Gains

On the final trading day of the week, the stock closed at Rs.371.95, up 1.17%, after reaching an intraday high of Rs.383.60. Despite the strong price appreciation, the company’s valuation metrics shifted from attractive to fair. The price-to-earnings ratio rose to 24.83 and the price-to-book value to 5.49, reflecting increased investor optimism but also signalling a more cautious valuation stance.

Compared to peers, Sky Gold & Diamonds remains competitively valued, with operational efficiency metrics such as ROCE at 17.21% and ROE at 17.87% supporting its premium. The PEG ratio of 0.25 further indicates reasonable pricing relative to earnings growth.

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Daily Price Comparison: Sky Gold & Diamonds Ltd vs Sensex

Date Stock Price Day Change Sensex Day Change
2026-02-09 Rs.349.50 +9.39% 37,113.23 +1.04%
2026-02-10 Rs.328.65 -5.97% 37,207.34 +0.25%
2026-02-11 Rs.334.80 +1.87% 37,256.72 +0.13%
2026-02-12 Rs.367.65 +9.81% 37,049.40 -0.56%
2026-02-13 Rs.371.95 +1.17% 36,532.48 -1.40%

Key Takeaways

Strong Financial Performance: The company’s Q3 FY26 results showcased exceptional profit growth, with operating profit surging 120% and net profit rising 53.68%, underpinning the stock’s rally.

Technical Momentum Shift: The upgrade to a Buy rating by MarketsMOJO and a Mojo Score of 77.0 reflect improved technical indicators, including bullish daily moving averages and weekly RSI, despite some mixed signals from MACD and KST.

Valuation Recalibration: The shift from attractive to fair valuation signals rising price multiples, with P/E at 24.83 and P/BV at 5.49, suggesting investors are pricing in growth but should remain mindful of valuation risks.

Market Outperformance: Sky Gold & Diamonds Ltd outperformed the Sensex by a wide margin, gaining 16.42% versus the index’s 0.54% decline, highlighting its resilience amid mixed market conditions.

Volume and Price Action: The stock experienced high volume spikes on key up days, notably on 12 February with over 2 million shares traded, supporting the strong price advances.

Sector Context: Operating in the Gems, Jewellery and Watches sector, the company’s mid-tier market capitalisation and operational efficiency position it well, though external risks such as gold price volatility remain relevant.

Conclusion

Sky Gold & Diamonds Ltd’s week was marked by robust financial results, a positive technical momentum shift, and a significant price rally that outpaced the broader market. The upgrade to a Buy rating and a strong Mojo Score reflect growing investor confidence, while the valuation shift to fair signals a more cautious stance amid elevated multiples. The stock’s ability to sustain gains will depend on continued operational performance and market conditions within the gems and jewellery sector. Investors should monitor upcoming developments closely, balancing the company’s strong fundamentals against valuation considerations and sector risks.

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