Gold prices have risen 45 percent in the last one year. Despite the boom in gold, jewelery companies are looking good. He is expected to stay in growth double digit. The volume has been slightly affected, but the prices have not affected the rapid realization. This will benefit companies like Sky Gold and Diamonds (SGDL). In the last one year, SGDL has expanded its product portfolio.
Increased focus on acquisition
SGDL has acquired the Starmangalasutra Private Limited, making it entry in the traditional and modern mangalsutra market. SGDL has also acquired the song Ann Gold. This has expanded the company’s product portfolio. SGDL is also entering diamond jewelery. This includes both natural and labs developed diamonds. The company is increasing its production capacity of 14 and 18 carat jewelery.
Extension of product portfolio
The company has focused on more innovative design on one side, on the other hand it is expanding in its product portfolio. This is helping him to attract new customers. In the last one year, he has acquired many big jewelery retailers. These include Idriya. It has also joined hands with PN Gadgil Jewelers and Carat Lane (part of Tata Company). It is also talking to big retailers like Reliance Group and Tanishish.
Emphasis on increasing production capacity
The company’s focus is also on the markets abroad. It is talking to the Middle East and Malaysia’s midsize jewelery chains. A large number of Indians live in these countries. The company is increasing its production capacity to four times. It has planned to set up a large plant, which will be located near the current plant. The company’s profit growth is expected to be good due to better product mix.
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Should you invest?
Last week, SGDL promoters sold 4.8 per cent stake in the company. The deal was average of the share at a price of Rs 348. Its impact was seen as a fall in the prices of shares. The market did not like the news of selling promoters’ share. However, basic things related to the company’s business are indicating a strong position. Currently, the company’s shares are trading at 20 times the estimated Ernings of FY27. This stock may be reatted.
