Shanti Gold
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Shanti Gold International is positioned for robust growth, driven by strategic capacity expansions and diversification into new product lines. Management's commitment to nearly tripling production capacity through new facilities in Jaipur and Mumbai is a significant catalyst for future revenue growth, particularly as the company enters the high-volume machine-made jewellery segment. This aligns with Vista's forecast of moderated revenue growth, supported by stable margins and a favorable industry backdrop characterized by rising gold prices and strong wedding demand. However, potential headwinds include gold price volatility and execution risks associated with ramping up new production. The jewellery sector's resilience, coupled with Shanti Gold's strategic initiatives, suggests a positive long-term outlook, with expected upside reflected in Vista's target prices. Over the next 12-24 months, key opportunities lie in expanding market share in underpenetrated regions and enhancing export capabilities, while watchpoints include the successful execution of capacity expansions and managing cost pressures
Why We Like This Stock
- Strategic capacity expansion to nearly triple production capacity enhances revenue potential
- Diversification into machine-made jewellery aligns with market demand trends and consumer preferences
- Strong management optimism and planned capital raise support growth initiatives
Things To Watch Out For
- Gold price volatility poses risks to profitability and margin stability
- Execution challenges in ramping up new production facilities could impact growth timelines
- Weak cash conversion relative to the asset base may constrain operational flexibility
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 711 | 1,106 | 2,019 | 3,748 | 4,717 |
| Profit Before Tax (Cr.) | 36 | 73 | 184 | 335 | 399 |
| PBT Margin | 5.1% | 6.6% | 911.3% | 8.9% | 8.5% |
| Net Profit (Cr.) | 26 | 55 | 140 | 255 | 303 |
| Earnings Per Share | 3.6 | 7.6 | 19.4 | 35.3 | 42.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Choice Equity | ▲ Buy | 350 | 04-Jun-2026 |
| Moneycontrol | ▲ Overweight | nan | 26-May-2026 |
Company Overview
Show Company Profile
Shanti Gold International Limited engages in the design, manufacture, and wholesale of gold jewellery in India, the United States, the United Arab Emirates, Qatar, and Singapore. It offers bangles, rings, necklaces, chokers, pendants, chand balis, jhumkas, and jewellery sets. The company was founded in 2003 and is headquartered in Mumbai, India.