BOB Capital sees 56% upside in Shanti Gold, 30% in Sky Gold
BOB Capital initiated BUY coverage on Shanti Gold with a ₹474 target versus ₹304, and upgraded Sky Gold to BUY with a ₹1,068 target versus ₹824.75.
The development
BOBCapital set a ₹474 target for Shanti Gold, implying 56% upside from ₹304, and a ₹1,068 target for Sky Gold versus ₹824.75, implying about 30% upside. It initiated BUY coverage on Shanti Gold and upgraded Sky Gold to BUY.
The numbers
- ₹474
- ₹304
- 56%
- ₹1,068
- ₹824.75
- about 30%
- around 7,900 kg per annum
- 4.5 times FY26 volumes
- 14,400 kg annual manufacturing capacity
- more than five lakh designs
- ₹20,187 million
- ₹32,294 million
- ₹41,675 million
- ₹1,499 million
- ₹1,977 million
- ₹21.1
- ₹27.8
- 39%
- 24%
- 15 times September 2028 EPS
- 32%
- ₹87,901 million
- ₹115,370 million
- ₹152,865 million
- ₹4,465 million
- ₹6,194 million
- ₹8,686 million
- ₹31.78
- ₹44.09
- ₹61.83
- 34%
- 45%
- 22 times September 2028 EPS
- 20 times
- ₹1,067/1,068
Why it matters to operators and investors
The bullish targets may strengthen market sentiment toward jewellery companies, but they are not evidence of a change in deal valuations or strategic activity.
What to watch next
- Quarterly revenue growth, order flow, margins, and working-capital requirements
- Gold-price volatility and its effect on demand, inventory costs, and financing needs
- Share-price performance relative to the broker targets and jewellery-sector peers
- Any additional broker coverage, target revisions, or changes in company guidance
- Watch for a near-term increase in trading volume and whether gains hold after the initial reaction.
- Look for further analyst coverage or peer-stock moves that extend the read-through beyond Shanti Gold and Sky Gold.
- Compare subsequent earnings and management commentary with the growth and margin expectations implied by the rerating.
The counter-case
The stated upside is based on one broker's price targets, not a forecast or assurance of returns. Targets may rely on optimistic growth, margin, and valuation assumptions; execution setbacks, gold-price volatility, working-capital needs, or a broader market derating could erase the implied upside. The shares may also already reflect expectations for jewellery-sector growth.