Stock of this smallcap jewellery company has zoomed nearly 100% in 3 weeks

Shares of SKY Gold hit a new high of Rs 590.20, and have rallied 97 per cent in three weeks from a level of Rs 299.15 on September 25, 2023.

Shares of SKY Gold were locked in the 10 per cent upper circuit at Rs 590.20, hitting a new high on the BSE at 01:12 PM; in an otherwise range-bound market. In comparison, the S&P BSE Sensex was down 0.05 per cent at 66,252.

In past three weeks, the stock price of SKY Gold has nearly doubled or zoomed 97 per cent from a level of Rs 299.15 on September 25, 2023. Thus far in the calendar year 2023, it has rallied 169 per cent, as compared to 8.4 per cent gain on the BSE benchmark index.

On regarding significant movement in the price of the security of the company, SKY Gold last week clarified that significant movement in the share price of the company are purely market driven and due to market conditions. As on date there is no information /announcement (including impending announcement) which in our opinion may have the price / volume behavior in the scrip, the company had said.

SKY Gold has a market cap of Rs 634 crore. As on September 30, 2023, the promoters held 73.55 per cent stake in the company. Of the remaining 26.45 per cent holding, retail investors held 22.29 per cent stake in SKY Gold, the shareholding pattern data shows.

SKY Gold spent around more than 4 years in BSE’s SME platform and then successfully migrated to the Main Board of BSE & listed its securities on NSE Limited on January 06, 2023.

SKY Gold is engaged in the business of importers, exporters, manufacturers, buyers, sellers, dealers, distributors, wholesalers, assembles, designers, cutters, polishers, and labor jobs in all kinds of gold and silver Jewellery.

The company provides an extensive range of designs and also use studded American diamonds and / or coloured stones in many of its jewellery products. Currently, the company caters to a large number of wholesalers showrooms and retailers who buy its products in bulk quantities.

The Indian jewellery retail sector is currently valued at approximately $76.3 billion in FY23 and is expected to grow substantially. This market is expected to grow at a CAGR of 5.54 per cent by 2027. This projection signifies the sector’s potential for significant expansion and economic impact in the coming years.

Gold jewellery demand in India is primarily driven by weddings’ significant role in the culture. Weddings in India holds immense importance and is marked by grand celebrations and traditions. Gold jewellery is essential to Indian weddings, representing prosperity, blessings, and the eternal bond between couples.

The demand for gold jewellery remains resilient in India due to the enduring wedding demand. Families consider gold jewellery as a valuable asset, both financially and emotionally, and often pass it down through generations. This cultural significance and belief in the auspiciousness of gold ensure its continued demand in the Indian market, SKY Gold said in its FY23 annual report.