BOB Capital Issues Buy Ratings on Jewellery Makers Shanti Gold and Sky Gold

Market Shift

India's organised jewellery manufacturing sector is undergoing a major structural change as large retailers move away from fragmented family units and increasingly outsource their production to specialised business-to-business makers. Brokerage firm BOBCapital Markets has started coverage on Shanti Gold International with a buy rating and also upgraded Sky Gold to buy, pointing to strong growth potential, better manufacturing scale, and rising participation in the formalised jewellery ecosystem.

Share Targets

For Shanti Gold, the brokerage set a target price of four hundred seventy-four rupees against its market price of three hundred four rupees, which points to a fifty-six percent upside. The firm highlighted that Shanti Gold is entering a rapid growth phase driven by capacity additions and new customer ties, including the ramp-up of its Marol facility and an upcoming Jaipur expansion. These moves will push total capacity to seven thousand nine hundred kilograms per annum, or four and a half times its financial year twenty-six volumes. BOBCapital projects Shanti Gold's revenue will jump from twenty thousand one hundred eighty-seven million rupees in financial year twenty-six to thirty-two thousand two hundred ninety-four million rupees in financial year twenty-seven, and reach forty-one thousand six hundred seventy-five million rupees by financial year twenty-eight.

Sky Gold Projections

For Sky Gold, BOBCapital raised its target price to one thousand sixty-eight rupees compared to its market price of eight hundred twenty-four point seventy-five rupees, offering about a thirty percent upside. Sky Gold brings a larger annual manufacturing capacity of fourteen thousand four hundred kilograms, a catalog of over five lakh designs, and a pan-India distribution network alongside a growing export business. The brokerage projects Sky Gold's revenue will hit eighty-seven thousand nine hundred one million rupees in financial year twenty-seven, one hundred fifteen thousand three hundred seventy million rupees in financial year twenty-eight, and one hundred fifty-two thousand eight hundred sixty-five million rupees in financial year twenty-nine, while lifting its valuation multiple to twenty-two times September twenty-twenty-eight earnings per share.

Context

Brokerage firms frequently issue buy ratings and price targets on specific listed companies after analyzing broader market trends like industry formalisation and outsourcing shifts. These target figures represent analyst predictions for future share prices over a specific horizon based on projected earnings, though actual market performance depends on many changing business conditions.