Check Before You Invest : Sky Gold and Diamonds Ltd

Snapshot

Q.1 Which industry/sub-sector does Sky Gold and Diamonds Ltd belong to?

Sky Gold and Diamonds Ltd belongs to the Consumer Durables sector, operating specifically within the Diamond & Jewellery segment.

Q.2 Is Sky Gold and Diamonds Ltd a good quality company?

Sky Gold and Diamonds Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Sky Gold and Diamonds Ltd undervalued or overvalued?

Sky Gold and Diamonds Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Sky Gold and Diamonds Ltd a good buy now?

Sky Gold and Diamonds Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Sky Gold and Diamonds Ltd?

Sky Gold and Diamonds Ltd revenue growth is 67.6% for FY-2025, which is above its 5-year CAGR of 32.29%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Sky Gold and Diamonds Ltd?

Sky Gold and Diamonds Ltd Return on capital employed is 21.43% for FY-2025, which is above its 5-year historical median of 18.61%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Sky Gold and Diamonds Ltd?

Sky Gold and Diamonds Ltd Return on Asset is 12.31%, which is above its 5-year historical median of 9.66%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Sky Gold and Diamonds Ltd?

Sky Gold and Diamonds Ltd Return on equity is 24.71% for FY-2025, which is in line with its 5-year historical median of 24.04%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Sky Gold and Diamonds Ltd?

Sky Gold and Diamonds Ltd Cash conversion cycle is 60 days, above its 5-year historical median of 48 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	3.24	5.22
ROE	24.71	24.04
ROCE	21.43	18.61
Cash Conversion Cycle	60 days	48 days

Q.6 Gross Profit margin of Sky Gold and Diamonds Ltd?

Sky Gold and Diamonds Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.3% for FY-2025, which is above its 5-year median of 2.9%, indicating increasing margins.

Q.7 Operating Profit Margin of Sky Gold and Diamonds Ltd?

Sky Gold and Diamonds Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.71% for FY-2025, which is above its 5-year median of 3.17% indicating increasing margins.

Q.8 Net Profit Margin of Sky Gold and Diamonds Ltd?

Sky Gold and Diamonds Ltd Net Profit Margin is 3.8% for FY-2025, is above with its 5-year median of 2.16%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	5.3	2.9
Operating Profit Margin	5.71	3.17
Net Profit Margin	3.8	2.16

Q.9 Debt to Equity ratio of Sky Gold and Diamonds Ltd?

Sky Gold and Diamonds Ltd Debt-to-Equity ratio is 0.77, which is above with the industry average of 0.58, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sky Gold and Diamonds Ltd?

Sky Gold and Diamonds Ltd Debt to cash flow from operations is -4.58, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sky Gold and Diamonds Ltd?

Promoters hold 51.74% of the Sky Gold and Diamonds Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sky Gold and Diamonds Ltd vs industry peers?

Sky Gold and Diamonds Ltd revenue CAGR is 32.29%, compared to the industry median CAGR of 11.19%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	67.6	11.2
Gross Profit Growth	158.3	14.9
Operating Profit Growth	114.1	17.5
Net Profit Growth	177.5	13.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	3.24	1.44
ROE	24.71	7.96
ROCE	21.43	8.31
Cash Conversion Cycle (days)	60.04	132

Valuation & price assessment

Q.1 Stock return of Sky Gold and Diamonds Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 119.07% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	119.1%	136.5%	51.6%

Q.3 Valuation ratios of Sky Gold and Diamonds Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	40.17	34.45	27.79
Price to Book	6.64	4.96	1.96
Price to Sales	1.72	0.94	1.27
EV to EBITDA	25.7	21.65	16.05

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