India’s organised jewellery manufacturing industry is witnessing a structural shift as retailers increasingly outsource production to specialised B2B manufacturers. According to BOBCapital Markets, this transition, along with capacity expansion, customer additions and growing demand for value-added jewellery, is creating a long-term opportunity for organised players such as Shanti Gold International and Sky Gold & Diamonds. The brokerage initiated coverage on Shanti Gold with a BUY rating and upgraded Sky Gold to BUY, citing their growth potential, manufacturing scale and increasing participation in the organised jewellery ecosystem.
BOBCapital has a target price of ₹474 for Shanti Gold, against its market price of ₹304, implying 56% upside. For Sky Gold, it set a target of ₹1,068, compared with ₹824.75, implying about 30% upside.
Shanti Gold vs Sky Gold: Rationale comparison
BOBCapital said Shanti Gold was entering a key growth phase, supported by significant capacity additions, expanding customer relationships and rising outsourcing opportunities. The brokerage highlighted the ramp-up of the Marol facility and the upcoming Jaipur expansion, which would take capacity to around 7,900 kg per annum, or 4.5 times FY26 volumes. It expects better utilisation to support earnings growth and margin expansion.
“Shanti Gold is entering a key growth phase, supported by significant capacity additions, expanding customer relationships, and rising outsourcing opportunities in the organized jewellery manufacturing industry,” BOBCapital said.
The brokerage also pointed to Shanti Gold’s product mix as a differentiating factor. The company has a greater presence in design-intensive CZ-studded jewellery, necklaces, earrings, rings and jewellery sets. These categories generally command higher making charges than chains and bangles, supporting better realisations and margin potential.
Sky Gold, meanwhile, offers greater scale and diversification. BOBCapital highlighted its 14,400 kg annual manufacturing capacity, broader product portfolio, more than five lakh designs and pan-India distribution network. The company is also expanding its export business. Its asset-light, order-linked gold procurement model is expected to limit inventory-price risk, while higher utilisation could support operating leverage.
“Sky Gold remains well positioned to capitalize on the ongoing formalization of India’s jewellery industry, backed by sustained capacity expansion, continued customer additions, and a widening product portfolio,” the brokerage said.
Estimates for Shanti Gold and Sky Gold
For Shanti Gold, BOBCapital estimated revenue would rise from ₹20,187 million in FY26 to ₹32,294 million in FY27E and ₹41,675 million in FY28E, with adjusted net profit projected at ₹1,499 million and ₹1,977 million, respectively. Adjusted EPS was estimated at ₹21.1 in FY27E and ₹27.8 in FY28E. The brokerage expects revenue and earnings CAGR of 39% and 24%, respectively, over FY26-29E.
BOBCapital valued Shanti Gold at 15 times September 2028 EPS and arrived at a target price of ₹474. It applied a 32% discount to Sky Gold’s multiple, citing Shanti Gold’s smaller scale, shorter listed history and execution risks linked to capacity expansion.
For Sky Gold, the brokerage projected revenue of ₹87,901 million in FY27E, ₹115,370 million in FY28E and ₹152,865 million in FY29E. Adjusted PAT was estimated at ₹4,465 million, ₹6,194 million and ₹8,686 million, respectively. Adjusted EPS estimates stood at ₹31.78, ₹44.09 and ₹61.83 for the three years. BOBCapital expects revenue and earnings CAGR of 34% and 45%, respectively, during FY26-29E.
The brokerage raised its valuation multiple for Sky Gold to 22 times September 2028 EPS from 20 times, citing stronger earnings visibility, successful capacity monetisation and sustained growth momentum, and set a target price of ₹1,067/1,068.
BOBCapital said India’s jewellery industry was shifting steadily from fragmented, family-owned manufacturers towards organised and technology-enabled players. Organised retailers are increasingly outsourcing manufacturing, creating opportunities for scaled B2B jewellery manufacturers. The brokerage said automated manufacturing, CAD-enabled design capabilities and dedicated product development can enable faster design refreshes, stronger execution and higher customer retention.
The brokerage identified retailer expansion, market-share gains, efficient inventory management and cash conversion as key drivers of premium valuations in the B2B jewellery segment. Increasing exports and outsourcing by organised retailers could provide additional growth avenues, while industry formalisation could benefit manufacturers with established customer relationships and manufacturing capabilities.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
