Buy Gitanjali Gems with target of Rs 325: Agarwal

Buy Gitanjali Gems with a target of Rs 325, says Rajesh Agarwal, Head of Research at Eastern Financiers.

Agarwal told CNBC-TV18, "One can buy Gitanjali Gems with a stoploss of Rs 300 and a target of Rs 325 for an intraday but for longer term one can hold this with a target of Rs 400. This company is a leading branded jewellery manufacturer in India with strong brands like Nakshatra, Gili, Asmi, etc with them. With the concept of branded jewellery increasing gaining momentum in India I think this company can do well in coming years also, has done well in recent past and can look well in future also."
He further added, "We expect a consolidated EPS of around Rs 35 for FY12 on the valuation parameter trading at less than 9 times its earnings. We think it is highly undervalued considering the brand value of this company." Click HERE to know the rules and follow the score card