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Last Updated : Apr 18, 2018 12:25 PM IST | Source: Moneycontrol.com

Buy Goldiam International, target Rs 82: Sumit Bilgaiyan

"Goldiam has unique business model and it’s current profitability doesn’t capture its true potential given the wide range of offerings and opportunity to rationalise cost structure. We are recommending a buy with target of Rs 82," says Sumit Bilgaiyan, Founder of Equity99.

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Sumit Bilgaiyan

Goldiam International (Goldiam) was incorporated in 1986 by M R Bhansali and K R Bhansali to export cut and polished diamonds and plain and studded gold jewellery. In addition to diamond cutting and polishing,

Goldiam also manufactures gold jewellery. The company has a state-of-the-art manufacturing facility in  Mumbai in an exclusive 100 percent export-oriented zone. Product range includes gold and diamond-studded rings, light-weight American cluster rings, cocktail rings, channel set bands, pendants, diamond and colour studded bracelets, earrings, etc.

In terms of geographical mix, the company is predominantly focused on

exports market. Export sales contributed to more than 90 percent of the Goldiam’s revenues.

Further, USA contributes around 70 percent of the Goldiam’s total exports and is the company’s prime export destination. Other regions to which Goldiam exports its products include Middle East, Thailand, UK, Russia and Japan.

The stock trades at P/E of just 10x. Market has lost it’s confidence in jewellary stocks due to Nirav Modi  scam but Goldiam has unique business model and it’s current profitability doesn’t capture its true potential given the wide range of offerings and opportunity to rationalise cost structure. We are recommending a buy with target of Rs 82.

Disclaimer: The author is Founder, Equity99. The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Apr 18, 2018 12:25 pm
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