WealthBull
   
FAQ | Member Login
 
 
  • Home
  • About us
  • Workshop
  • Today's Market
  • Partner Us
  • Events
  • Contact Us
Today's Market
Gitanjali Gems moves up sharply!
21 Nov 12 07:10 AM

Gitanjali Gems retails branded gold and diamond jewellery and exports cut and polished diamonds.

When it was trading at Rs 310 we informed it as a good trading stock. The stock price has moved up by more than 45% since then. Though we have given an exit some of the members have reentered it when it came down to Rs 310! It is time to evaluate it as the stock price is moving up despite poor market conditions.


The results of the company are not encouraging. Gitanjali Gems net profit declines 8.17% to Rs 78.33 crore in the September 2012 as against Rs 85.30 crore during the previous quarter ended September 2011.  Interestingly, the sales rose 15.53% to Rs 2241.60 crore in the quarter ended September 2012 as against Rs 1940.25 crore during the previous quarter ended September 2011. The company’s high interest cost is hurting the bottom line which is why the net profit is down. Besides, higher gold price in rupee terms is hurting the profitability as well as the growth of the company. Though global gold price has cooled off, the price in rupee terms is up more than 10 per cent over the last year. Recently the board has given in-principle approval to merge Gitanjali Infratech, a 100% subsidiary of the company, into Gitanjali Gems. Probably that has driven the stock price to higher level. At current price the stock does not have any strength to move up. However technically one has to watch if the stock crosses Rs 455 and finally Rs 480. In case it does then it could touch Rs 600 in short span of time. However right now the stock does not offer margin of safety and one has to be careful with such kind of stocks where punters are active. To get into safe set of stocks please sign in for retire rich stocks. The last date for signing up is closing on 30th November, 2012, after which you have to wait for 1 year to sign up. If you need more details please write to This e-mail address is being protected from spambots. You need JavaScript enabled to view it now.


Market update:

The market may go in either way now. Charts indicate that the correction is over but we will have to check if bears resurface again at higher levels. The market should close above 5600 levels today otherwise the market may sink to 5400! Let us check it and inform you in the coming days.

 

Add comment


Security code
Refresh

Send
Cancel
JComments
 

Other Investment Advice

How is it going to be in the year 2018? 01 Jan 18 07:57 AM

Infosys completes buyback! 25 Dec 17 09:15 PM

This one quote of Peter Lynch can help you to make millions! 17 Dec 17 10:56 PM

December investors meet is scheduled on 17th! 10 Dec 17 10:16 PM

 

Client Speak

    Kalaimamani Sanjay Subramaniam, Carnatic Singer
    I was scared of the stock market for the last 15 years since I burnt my fingers ...
    Read all...
 
Site Designed and developed by Accel Frontline Limited
© Wealthbull 2010 Disclaimer | Contact us | About Us | Sitemap