Sky Gold & Diamonds Ltd (SKYGOLD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Thangamayil Jew.

Sky Gold & Diam.

Senco Gold

P N Gadgil Jewe.

Goldiam Intl.

Vaibhav Global

Timex Group

PC Jeweller

Ethos

Bluestone Jewel

KDDL Ltd

Why is Sky Gold & Diamonds Ltd ?

High Management Efficiency with a high ROCE of 17.03%

Healthy long term growth as Net Sales has grown by an annual rate of 70.31% and Operating profit at 119.35%

With a growth in Operating Profit of 20.33%, the company declared Very Positive results in Dec 25

The company has declared positive results for the last 11 consecutive quarters
NET SALES(Q) At Rs 1,767.68 cr has Grown at 51.3% (vs previous 4Q average)
OPERATING PROFIT TO INTEREST(Q) Highest at 5.78 times
PBDIT(Q) Highest at Rs 122.38 cr.

With ROCE of 17.2, it has a Fair valuation with a 3.4 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 3.38%, its profits have risen by 112.1% ; the PEG ratio of the company is 0.2

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 2.87% over the previous quarter and collectively hold 12.44% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sky Gold & Diam. should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Sky Gold & Diam. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Sky Gold & Diam.

3.38%

0.07

45.29%

Sensex

-3.8%

-0.29

13.30%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

70.31%

EBIT Growth (5y)

119.35%

EBIT to Interest (avg)

4.03

Debt to EBITDA (avg)

3.92

Net Debt to Equity (avg)

0.56

Sales to Capital Employed (avg)

3.34

Tax Ratio

24.36%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

12.44%

ROCE (avg)

15.17%

ROE (avg)

22.56%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.71

EV to EBIT

15.86

EV to EBITDA

15.32

EV to Capital Employed

3.37

EV to Sales

1.00

PEG Ratio

0.21

Dividend Yield

ROCE (Latest)

17.21%

ROE (Latest)

17.87%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

38What is working for the Company

NET SALES(Q)

At Rs 1,767.68 cr has Grown at 51.3% (vs previous 4Q average

OPERATING PROFIT TO INTEREST(Q)

Highest at 5.78 times

PBDIT(Q)

Highest at Rs 122.38 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 6.92%

PBT LESS OI(Q)

At Rs 98.69 cr has Grown at 77.8% (vs previous 4Q average

PAT(Q)

At Rs 80.54 cr has Grown at 73.9% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Lowest at 0.79 times

EPS(Q)

Highest at Rs 5.20

-10What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.34 times

INTEREST(Q)

Highest at Rs 21.18 cr

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Here's what is working for Sky Gold & Diam.

Net Sales - Quarterly

Highest at Rs 1,767.68 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 1,767.68 cr has Grown at 51.3% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 1,167.96 Cr

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 5.78 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Highest at Rs 122.38 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 6.92% and Grown

each quarter in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 98.69 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 98.69 cr has Grown at 77.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 55.51 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 80.54 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 80.54 cr has Grown at 73.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 46.32 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 5.20

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Lowest at 0.79 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Sky Gold & Diam.

Interest - Quarterly

Highest at Rs 21.18 cr

in the last five quarters and Increased by 20.48 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 7.34 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio