Sky Gold, a gems and jewellery company, is going to turn ex-bonus on Monday, December 16, for the second biggest bonus issue of 2024. The company is going to reward investors with 9 free shares on the existing 1 piece. Sky Gold has emerged as a massive multibagger of 2024, with gains of a whopping more than 345%. Brokerage Nuvama has recommended BUY. Currently, the stock is near Nuvama's target.
Sky Gold Share Price:
Last week, on December 13th, the stock price closed at Rs 4435.30 apiece, up by 2.81% on BSE with a market cap of Rs 6,499.49 crore. The stock is near its 52-week high of Rs 4,680 apiece, while it has given nearly a 5-fold return compared to its 52-week low of Rs 902.10 apiece.
The stock's weekly performance is up by 6.11%. In a month, the stock rallied by 30%. While in six months, the performance is strong with a surge of 240.50%. YTD, Sky Gold stock has skyrocketed by 345.04% or Rs 3,438.70.
As per the reports, Ashish Kacholia is an investor in the Bengal Finance and Investment Pvt Ltd who is among the top public shareholders of Sky Gold. As of September 30, 2024, the data on shareholding patterns on BSE showed that Bengal Finance owns about 2,52,900 equity shares or a 1.73% stake in Sky Gold.
Sky Gold Bonus Issue:
Sky Gold has announced the issuance of Bonus Shares in the ratio of 9:1 i.e. 9 (Nine) New Bonus Equity Shares of Rs. 10/- each for every 1 (One) Existing Equity Share of Rs. 10/- each fully paid.
The company has fixed December 16 as the record date to determine eligible shareholders for bonus issues. The company has revealed that it plans to issue about Rs Rs. 1,33,89,19,290/- consisting of 13,38,91,929 equities as bonus shares.
Sky Gold aims to finish its bonus issuance within two months from the date of the Board approval i.e. on or before 24th December 2024.
The 9:1 bonus issue is the second largest issue by a listed company in 2024, with VST Industries 10:1 bonus issue being the largest of 2024.
BUY Sky Gold:
According to brokerage Nuvama, in Q2FY25, like-to-like revenue for SKY Gold (SKYGOLD) grew 81% YoY and 6% QoQ to INR717cr on higher volumes. Consolidated revenue stood at INR769cr (est. INR569cr) driven by volumes and higher gold prices. Also, gross profit surged by 137% YoY and 9% QoQ to INR50cr on higher sales and a superior product mix. Gross margin expanded by 120bp YoY to 6.5% on the back of a favourable product mix.
Further, the brokerage highlighted that Adjusted PAT, excluding other income, grew 166% YoY to INR19cr (est. INR16cr) on higher EBITDA. PAT, including other income, stood at INR37cr.
That being said, Nuvama added, "We reiterate 'BUY' with a revised TP of INR4,500 at 35x FY26E earnings."
In the quarter, the company raised about Rs 270 crore through a Qualified Institutional Placement (QIP) from renowned funds like Motilal Oswal Small Cap Fund, Kotak Mahindra Life Insurance and Bank Of India Flexi Cap among others. Also, the company added CaratLane and P N Gadgil Jewellers to its client portfolio, while its manufacturing margin-accretive 18-carat gold and diamond jewellery.
About Sky Gold:
Established in 2008, Sky Gold Limited (SGL) is one of the leading jewellery companies based in Mumbai. The Company specializes in lightweight jewellery of 18 & 22 Carat gold, manufacturing a variety of designs including plain gold jewellery, studded gold jewellery, diamond-studded jewellery, and Turkish jewellery. Operating on a B2B model, Sky Gold collaborates with leading jewellery retailers like Malabar Gold and Diamonds, Joyalukkas, Kalyan Jewellers, CaratLane, GRT Jewellers, and Senco Gold, making its products available in over 2000 showrooms across India.
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