The shares of this smallcap company jumped around 4 percent in Thursday’s trading session after receiving an export order for diamonds worth Rs. 70 crores. In just one month, the stock has delivered more than a 90 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 3,729 crores, the shares of Goldiam International Ltd started Thursday’s trading session on a higher note at Rs. 340 compared to its previous close of Rs. 336.45.
During the trading session, the shares hit a high of Rs. 355, gaining around 4 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 346 apiece.
What Happened:
Such a positive movement in the share price was observed after the company, in an exchange filing, announced that it had received purchase orders of Rs. 70 crores from a large retailer in the USA for diamond-studded gold jewellery, 80 percent of which is lab-grown diamond jewellery. These orders are expected to be fulfilled over the next 3 to 4 months.
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Financials:
Looking at the company’s financial statements, the revenue jumped by 12 percent from Rs. 148 crores during the March quarter to Rs. 166 crores in the June quarter. In addition, the net profits zoomed by 22 percent from Rs. 18 crores to RS. 22 crores during the same period.
Order Book:
In Q1FY25, Goldiam secured new orders totalling Rs. 1,400 million. As of June 30, 2024, the company’s order book stands at Rs. 1,500 million, which is anticipated to be fulfilled over the next three to four months.
Lab Grown Diamond Jewellery:
Goldiam has been transitioning from a pure natural diamond in-store jewellery company to a major supplier of Lab Grown Diamond Jewellery, with an omnichannel sales strategy.
As per the company’s filing, the share of lab-grown diamonds has risen from 32.7 percent in Q1FY24 to 68.4 percent in Q1FY25. This increase in Lab Grown Diamond jewellery sales indicates a steady shift in US consumer preferences.
Prominent Investors:
According to the BSE data, Ace Investor Mr Ramesh Damani, entering the stock in June 2019, currently holds over 16.82 lakh equity shares equivalent to a 1.58 percent stake in this company. The current holding value of his investment amounts to Rs. 58.9 crores.
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Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 14.41 percent and a return on capital employed (RoCE) of 19.02 percent for the period spanning FY23-24. Further, the net profit margin stood at 15.07 percent during the same period.
Company Profile:
Headquartered in Mumbai, Goldiam International Ltd was incorporated in 1986. The company is engaged in the business of manufacturing and exporting gold and diamond jewellery to global retailers.
Written By Vaibhav Patil
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