SP Tulsian of sptulsian.com told CNBC-TV18, "I will not be surprised to see Gitanjali Gems correcting to Rs 300 in the near-term and that is what has exactly happened. If you really see the quantum, about 75 lakh shares are offered on National Stock Exchange (NSE), Bombay Stock Exchange (BSE) at the lower level also. What I see more, it is not the business risk which is really bothering this company. this kind of negative perception which we have been seeing building up for all the jewellery stocks whether you talk of Tribhovandas Bhimji Zaveri (TBZ), PC Jeweller, Shree Ganesh Jewellery, that has not been the case with Gitanjali Gems."
He further said, "We may see the 10 percent lower circuit and I will not be surprised to see the value getting eroded to the level of maybe about Rs 200-220. We may see this company also going the way we have seen the value destruction having taken place in Core Education, Zylog Systems, Opto Circuits, because in case of all these companies we had very good financials posted by the company."
"So there is no point in taking the call on the business or the recent gold curbs having imposed by the Reserve Bank of India (RBI) or on the business model. This has more to do with the margin call pressure. This kind of fear we have seen in few other stocks also. Maybe this margin call pressure has started haunting some of the stocks again in this carnage," Tulsian added. Also Read: Gitanjali Gems down 40% in 2 days; recent RBI norms to hurt
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