Shah told CNBC-TV18, "For Goenka Diamond the valuations were looking a little rich but if you see the pedigree of Shrenuj & Co and the kind of licence they have in Botswana and the kind of potential they are foreseeing for this industry over the next few years it looks very amazing. We have been recommending this stock since the levels of Rs 28-29-30."
He further added, "This year they are going to report about that is what we at Angel strongly believe that more than Rs 45 crore of profit and for the current year that is for the year just ended that is March 2011, I think the profit could go up at least 30%. While the management is talking about 15-20%, I think we at Angle are a little more optimistic than the management. We believe that Rs 8.5 kind of earnings is what Shrenuj can report. With the kind of board they have; absolutely amazing board and the market cap of this company is just about Rs 320 crore, so it is trading about 5 times the earnings. I strongly see a 50% upside in this company over the next 12 months."
