India, Sept. 25 -- Sky Gold & Diamonds has entered FY27 with a sharp acceleration in both revenue and profitability, while its stock has also undergone a major re-rating. The company is increasingly moving beyond its traditional gold jewellery business into lightweight, lower-karat, studded, Advance Gold and export-led opportunities.

The timing is important. Management expects the second and third quarters to benefit from Navratri-Diwali and the marriage season, while exports, higher-margin products and better working-capital management are becoming larger parts of the business. The question after the stock's roughly 150% rally, therefore, is whether earnings can continue catching up with the valuation. Management's Q1 commentary provid...