9:1 Bonus Share: Multibagger Gold & Diamond Stock In Focus As Company Purchases Land for Future Business Growth

The stock delivered multibagger returns of 220 per cent in just 1 year and a whopping 3,450 per cent in 3 years.

Sky Gold and Diamonds Limited has acquired a plot of land measuring 10,500 square meters to construct a 5,40,000 sq. ft. facility. This development aims to boost their production capacity by 4.5 tons KG per month, adding to their existing capacity of 1 ton KG per month. Currently, their capacity utilization is 0.55 tons KG per month. The proposed capacity addition is expected to be completed by the financial year 2027.

The investment required for this expansion is estimated to be over Rs 100 crore, financed through internal accruals. The rationale behind this acquisition and expansion is to increase in-house production capacity, be cost-competitive, and capitalize on market opportunities. The proposed capacity addition of 4.5 tons KG per month is expected to create a total capacity of 5.5 tons KG per month.

Earlier, shares of the company issued a bonus share issuance in the ratio of 9:1. The company distributed 9 new fully paid-up equity shares of Rs 10 each for every 1 existing fully paid-up equity share held by its shareholders. The ex-date was Monday, December 16, 2024.

Sky Gold and Diamonds Limited is engaged in the design, manufacturing, and marketing of gold jewellery. The company follows a B2B model, where the products are mainly sold to mid-range jewellers and boutique stores, which are sold through online platforms and retail stores.  

Sky Gold Ltd has a market cap of Rs 4,974 crore and a stock price CAGR of 230 per cent over the last 3 years. The stock delivered multibagger returns of 220 per cent in just 1 year and a whopping 3,450 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.