Goldiam International Ltd
(BSE Code: 526729) (CMP: Rs.69.40) (FV: Rs.10)
Incorporated in 1986, Mumbai based Goldiam International Ltd (GIL) together with its subsidiaries manufactures and distributes diamond studded gold, platinum and silver jewellery. It operates through two segments: Jewellery Manufacturing and Investment Activities. It invests its surplus funds in Mutual Funds, equities, etc. Its products include engagement rings, wedding bands, anniversary rings, bridal sets, earrings, pendants and necklaces. It is also engaged in exports.
GIL has an equity capital of Rs.24.95 crore supported by huge reserves of Rs.331.26 crore. The promoters hold 57.72% of the equity capital, which leaves 42.28% stake with the investing public. With a share book value of Rs.147.45, its P/BV ratio works out to just 0.47. For FY18, GIL reported marginally higher PAT of Rs.20.21 crore on higher sales of Rs.330.38 crore and an EPS of Rs.8.1. During Q1FY19, it reported 211% higher PAT of Rs.8.72 crore on 43% higher sales of Rs.105.84 crore and an EPS of Rs.3.5. It paid 15% dividend for FY18. Currently, the stock trades at a P/E of just 6.02x and looks quite attractive based on its performance parameters. Investors can buy this stock with a stop loss of Rs.60. On the upper side, it could zoom to Rs.90-100 in the medium-termto-long term.