Enter Gitanjali Gems around Rs 560-565, says SP Tulsian

SP Tulsian, sptulsian.com advises traders to enter Gitanjali Gems around Rs 560-565.

Tulsian told CNBC-TV18, “Gitanjali Gems, you have the value because if you see the stock and if you see their brand portfolio their presence even now the share is ruling after such a big run up share is ruling in a single digit, maybe in the PE multiple of 9-9.5 while we see the new entrants like Tribhovandas Bhimji Zaveri (TBZ) or maybe like the PC Jewellers which are also ruling in the same price-to-earnings (PE) multiple.”
He further added, “But what I did not like about Gitanjali Gems is too much volatility is seen in the share price and in fact it is learnt that the informed circle, who are close to the management are also quite active. So, sometimes that doesn’t get liked by the market. In fact that is my call that maybe at Rs 620-625 we will see the stock getting corrected maybe by Rs 60-70. So, that is not very positive for the retail traders or those who are purely traders and not investors. So, if you need to take some investment call on the stock looks for the share to dip maybe at a level of 560-565 where the entry can be made.”