SKY GOLD AND DIAMONDS LIMITED Intrinsic Value
SKYGOLD · Consumer Durables · Current price ₹1,065
Is SKY GOLD AND DIAMONDS LIMITED undervalued?
We estimate the fair value of SKY GOLD AND DIAMONDS LIMITED at ₹623 per share, against a market price of ₹827. That puts the share price about -24.7% above our estimate, at high confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 2 methods: Fair multiple (P/E) (₹617), PEG (growth-implied P/E) (₹649). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for SKY GOLD AND DIAMONDS LIMITED spans ₹561 to ₹686. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Margin of safety
Value investors look for a margin of safety: a discount to estimated value that absorbs being wrong. At ₹827 against an estimated value of ₹623, SKY GOLD AND DIAMONDS LIMITED trades at -24.7%, i.e. a premium to our estimate. How much margin to demand depends on how much you trust the inputs, which is what the confidence band below is for.
How we got this fair value
Every number below is part of the same estimate for SKY GOLD AND DIAMONDS LIMITED. Nothing here is a target price or a forecast of where the share price will go.
The models agree and the inputs are well covered. Treat this as our firmest estimate.
Estimate range ₹561 – ₹686
Why this method for this business
The business is asset-light and earns through brand power, so a P/E multiple based on normalized earnings and a PEG model that accounts for growth are the most relevant. DCF is not suitable due to the lack of stable cash flows and the high sensitivity to macroeconomic conditions.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
- dcf: Not suitable for a brand-driven business with erratic cash flows and high sensitivity to macroeconomic conditions
- relative_pe: Already used as the primary model
What was missing
- Lack of detailed information on brand strength and customer loyalty metrics
- Limited data on long-term growth sustainability beyond 2027
What drives it
17 inputs, grouped by how strong each claim is
- Sector-median P/E
- 18.7×
- Peers used
- 9
- EPS (TTM)
- 21.64 ₹/share
- Own-history median P/E
- 24.64×
- Earnings growth
- 145.8% CAGR
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
computed
- Term: quality
- -6.0%
- Term: growth
- +40.0%
- Term: capital_allocation
- +4.1%
- Term: financial_strength
- +0.3%
- Term: history
- +9.5%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 43/100 (weak/erratic returns) → discount
durable ~51% CAGR (ROCE 14% > hurdle) → premium
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: moderate leverage (D/E 0.6) → neutral
history: market paid +32% vs sector, dampened ×0.3 (one feature, not the anchor)
sector re-rating: no sector-norm history → not used
rates: risk-free 6.9% below ~7.1% normal → higher multiple
risk: no analyst-dispersion signal available → neutral (lowers confidence, not PE)
- Premium vs sector
- +52.4%
- Fair-multiple confidence
- 84%
- Fair P/E
- 28.49×
- Growth-implied P/E
- 30×
fundamentals + macro (not capped at own history)
data completeness + term agreement
sector median × ∏(1+term) — Dynamic Fair Multiple
min(growth, 30)
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for SKY GOLD AND DIAMONDS LIMITED: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyMore on SKY GOLD AND DIAMONDS LIMITED
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.