Certification and accreditation services for diamonds, gemstones, and jewelry play a critical role in ensuring the authenticity, quality, and ethical sourcing of precious materials. These services verify factors like cut, color, clarity, and carat weight of diamonds and gemstones, providing consumers and businesses with confidence in their purchases.
The sector in India is poised for substantial growth due to the increasing demand for certified jewelry, both domestically and internationally, driven by rising consumer awareness and the expansion of the luxury market. Key players in this field include the Gemological Institute of America (GIA), Indian Gemological Institute (IGI), and the Bureau of Indian Standards (BIS).
As India continues to be a global hub for diamond and gemstone processing, the certification sector’s role in enhancing the integrity and trustworthiness of the industry will become even more crucial.
Share Price
The shares of International Gemological Institute (India) Ltd. are currently trading at Rs. 508 up by 2.32% from its previous close of Rs. 496.5 as of January 29, 2025. The stock also touched an intraday low of Rs. 493.3.
Recent Updates
Growth of Lab-Grown Diamond Industry
The lab-grown diamond industry is witnessing significant growth as consumers seek more affordable alternatives to traditional natural diamonds. Lab-grown diamonds offer the same physical properties and appearance at a fraction of the cost. This trend is expected to increase the demand for certifications, ensuring consumers receive genuine products. IGI India, with its expertise in certifying both natural and lab-grown diamonds, is poised to benefit from this rising demand, further strengthening its position in the evolving diamond industry.
Morgan Stanley’s Positive Outlook
Morgan Stanley recently initiated coverage on IGI India with an ‘Overweight’ rating and a price target of ₹617, implying a potential upside of 25%. The brokerage highlighted the company’s strong position in the lab-grown diamond sector, which has the potential to drive future growth. While acknowledging that the success of the lab-grown diamond industry is still evolving, Morgan Stanley believes IGI India is well-positioned to capitalize on the trend and its increasing market share.
Strong Market Position in India
IGI India holds a dominant 50% market share in diamond certification in India, operating 19 labs across the country and one in Turkey. This extensive network allows the company to cater to a diverse range of clients, consolidating its leadership position in the Indian market.
Financial Performance and Global Reach
In FY23, IGI achieved a 33% global market share, solidifying its place as the second-largest independent certification provider. Despite a slight dip in profits for the nine months ending September 2024, IGI India remains on track for long-term growth, driven by its leadership in both natural and lab-grown diamond certifications.
About the Company
International Gemmological Institute (IGI) India, part of the globally recognized IGI Group, is a prominent provider of certification services for diamonds, lab-grown diamonds, jewelry, and colored stones. The company has built a strong reputation for offering trustworthy and reliable evaluations of precious materials. By certifying the authenticity and quality of diamonds, IGI India plays a vital role in maintaining transparency in the diamond industry, supporting the growth of both natural and lab-grown diamonds.
Written By: Dipangshu Kundu
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any los
