Buy Gitanjali Gems, says Rajesh Agarwal

Buy Gitanjali Gems, says Rajesh Agarwal of Eastern Financers.

Agarwal told CNBC-TV18, "One can buy Gitanjali Gems with a stoploss of Rs 302 and a target of Rs 321. With the concept of branded jewellery gaining momentum, we think the company is going to do well in the coming years. In the current quarter also, the numbers have been quite good. PAT has increased to Rs 123 crore versus Rs 79 crore." He further added, "We expect the company to report an EPS of 40-45 in FY12. Currently the stock is trading at less than 7 PE which we think is highly undervalued. One can buy this stock with a long term target of Rs 480-500. For intra day, a target of Rs 321 and stop loss of Rs 302 has to be maintained." Click HERE to know the rules and follow the score card