Microcap stock surged to its 5% upper circuit after experiencing a remarkable 368% increase in net profit quarter over quarter.
Microcap stock: A prominent jewelry manufacturer and retailer has shown impressive growth in its third-quarter results for FY25, demonstrating significant year-over-year and quarter-over-quarter performance. The company’s outstanding financial metrics, such as substantial revenue growth and profit surge, indicate a strong market position and effective business strategies in the luxury segment.
Share Price Movement
Golkunda Diamonds & Jewellery Limited saw its share price reach a 5 percent upper circuit of Rs. 186.55 per share on Tuesday, up from its previous close of Rs. 177.7 per share. The market capitalization now stands at approximately Rs. 129.91 crore as of January 13, 2025.
What is driving the price?
Golkunda Diamonds & Jewellery reported impressive Q3 FY25 results with a 5% upper circuit. Their revenue increased by 30% QoQ and 46% YoY, while profit surged by 368% QoQ and 54% YoY. This strong performance reflects the company’s robust growth trajectory.
Financial Highlights
According to its recent filing, in the quarter ending September 2024, Golkunda Diamonds & Jewellery’s consolidated revenue from operations increased by 46% YoY from Rs. 50.4 crore in Q3 FY24 to Rs. 73.8 crore in Q3 FY25 and increased by 30% QoQ from Rs. 56.8 crore in Q2 FY25.
The company’s consolidated net profit increased by 54% YoY, from Rs. 3.19 crore in Q3 FY24 to Rs. 4.92 crore in Q3 FY25. Compared to the last quarter of 2025, the company’s net profit increased by 368% QoQ from Rs. 1.05 crore.
The average price-to-earnings (P/E) ratio in the diamond cutting and jewelry industry is 39.51, which is higher than Golkunda Diamonds
Market Outlook
The Gems and Jewellery industry, in which India excels globally, is undergoing a transformation with the emergence of organized players such as our company. Situated in SEEPZ-SEZ, we are strategically positioned to take advantage of export policies and international partnerships. Despite facing challenges such as competition and government regulations, the sector is expected to experience moderate to robust growth.
Our company’s strong management team and strategic positioning instill confidence in our ability to capture a significant market share. The growth of this industry will be in sync with advancements in other sectors, promising steady progress and increased global engagement in the years to come.
Shareholding Pattern
As of September 2024, the shareholding pattern of Golkunda Diamonds & Jewellery Limited shows that the promoters hold 72.76 percent of the company, while the public holds 27.23 percent.
About the Company
Established in 1990, Golkunda Diamonds & Jewellery Limited is a prominent player in the Indian diamond and jewellery industry. Based in Andheri (East), Mumbai, we specialize in the manufacturing and export of polished gems and diamond-studded gold jewellery. Under the leadership of Managing Director Shri Arvind Dadha, our company is renowned for its craftsmanship and quality. With a global clientele and a strong reputation for design excellence, we continue to make a mark in the industry.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.