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Gitanjali Gems

Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=180
Printed Date: 28/Jul/2014 at 12:14pm


Topic: Gitanjali Gems
Posted By: Ajith
Subject: Gitanjali Gems
Date Posted: 15/Aug/2006 at 8:19am
 Gitanjali Gems has agressive growth plans on many fronts-domestic retail,foreign retail, exports,SEZ.But fund requirements may be large.Strong brand equity,a large adressable market and presnce in most retail chains are plus points.Recent quarterly was surprisingly good inspite of heavy advertising expenditure which seems to have been incurred on TV Channels.
         A risk factor could be a slowdown in the US.
       
        


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Ajith



Replies:
Posted By: basant
Date Posted: 17/Aug/2006 at 12:21pm

Gitanjali Gems – Some things that glitter could be gold.

Gitanjali Gems is engaged in the booming jewelery business. Out of the total Jewelery market of Rs 40,000 crores a major part is in the unorganized space with the organized sector making only 2% of the market. The scope for growth as with all companies that I like to follow is HUGE. The company sells jewelery in brands like DDmas, Gili, Asmi Nakshatra and Sangini.

Well-established brands could help the company take advantage of the shift in preference towards branded jewelery and ramp-up sales. The company is also engaged in Jewelery exports. Rising income levels and availability of affordable diamond jewelery (entry price is as  low as Rs 5,000) could drive sales. Gitanjali's plans to expand through brand kiosks in malls could provide its brands higher visibility.

Opening up retail outlets in smaller cities will provide  access to a relatively untapped market for branded jewelery. The company has an aggressive retail growth plan over the next few years. Clearly with organized retail taking off Gitanjali should be benefited.

The company has also obtained a SEZ approval from the government for a project at Hyderabad. The total investment outlay is at Rs 1200 crore estimated to be deployed over a period of next three years. Once completed the project should yield an annual income of Rs 250 – 300 crores Gitanjali has appointed Jurong of Singapore to execute the development plan which is expected to take off in this month.. The first phase will get completed in a year’s time.

The company buys gold against a line of credit from Banks and Institutions. As a policy they are always hedged against gold price movements. Thus the company would not benefit in case gold prices went up and would similarly they will be protected on the downside. The managements says that Gold price fluctuation do not affect jewelery sales.

Financial Snapshot

C.M.P

Rs 170

Market Capitalization

Rs 1003 crores

Sales Fy 07 Q1

Rs 498.15 crores

Net profit Fy 07 Q1

Rs 21.10 crores

EPS Fy 07 (E)

18

PE

9.5 times

 

 

 

 

The company came out with stunning numbers for the June quarter. Profits doubled from the March quarter inspite of higher marketing costs and the management sees the strong trend in growth continuing .The sales have gone up by 50% from Rs 332 crore to Rs 498.15 crore and Profit after tax  has gone up from Rs 9 crore to Rs 21 crore.

The jewelery sales went up by 140% and contribute to about 30% to the top line and more than 50% to the bottom-line.

Jewelery sales and luxury item sales  rise by about 50% during the during the festival/marriage season October – March. Assuming that the company will show a flat September quarter the EPS for the first half should be around Rs 7. Assuming a 50% jump in sales the second half should reflect an EPS of Rs 11 giving an annualized EPS of Rs 18

As a part of their retail initiative the company has announced a joint venture with Modern India. This JV shall expand the retail operations of the company. The company also announced the signing of a new joint venture agreement with Sanghavi Exports under which it will become a 50-50 partner in Spectrum Jewelery. The joint venture will manufacture and market the Sangini brand of diamond jewelery. The management says that in the changing retail scenario, there is a huge potential for growth in the branded jewelery segment,

Recommendation: While the business model is excellent and the company does own some very valuable brands Gitanjali gem’s proposed diversification into SEZ’s (exclusively for the gems and jewelery section) is adiversification that needs to be closely observed. I prefer companies that are focused and stick to their core activities. How Gitanjali can derive sunergies from this SEZ remains to be seen. On the other hand this venture if completed should add Rs 50 to the EPS that is Rs 500 at least to the stock price.As indicated above the management hopes to make Rs 250 - 300 crores each year from the SEZ venture.

Gitanjali trades at a current year PE of less then 10 compared to Titan’s (Tanishq). PE of 32.The RoE is how – ever very low but that could be because the IPO proceeds are yet to be deployed. There is a scope for a PE re-rating and the stock could handsomely reward shareholders. The stock also trades at a market cap to sales ratio of less then 0.5 for the current year. It could therefore be categorized as a growth cum value play which coulkd be a significant multibagger in the making.

Source: Media reports and company communication



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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: Ajith
Date Posted: 17/Aug/2006 at 3:17pm
My worries regarding the stock are:
1.Whether the jump in profits was due to some group company mergers which took place prior to IPO.
2.What proprtion of the sales comes from exports and how much US slowdown could affect sales.
3.whether SEZ plans require equity dilution
Going through the Annual Report will be important.


Posted By: basant
Date Posted: 17/Aug/2006 at 3:50pm
Management has gone on record to say that that there would not be equity dilution. But  things change  very fast as you would know.
 
Jewellery exports is less then 20% of total turnover as per media reports. Even otherwise Jewellery should remain immune to an economic
 
Slowdown also the time line of US slowdown is itself debatable so I would not be too concerned about this.
 
The Profits are all operating/business profits. that is as per the quarterly results.
 


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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: basant
Date Posted: 21/Aug/2006 at 11:41am
Ajit:
There was a news item in Business Standard today that Gitanjali will increase its overseas business income upto 50% of its retail sales by 2010 from the current level of 20%. The company would be investing Rs 50 crores to set up an international venture which would be based out of Dubai.The company also informed that they would be rolling out 20 shops in US, UK and Saudi Arabia by the end of the year.
 
Gitanjali is also on the hunt for a suitable brand in China as well as looking at possible take overs in the US.At the end of this year gitanjali hopes to have 170 shop in shops in India and 70 stand alone stores in India.
 
The stock was up in circuit at Rs 177.15


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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: reema
Date Posted: 22/Aug/2006 at 8:10am
Is this another Titan in the making?

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You should try to add wealth not multiply it


Posted By: basant
Date Posted: 28/Aug/2006 at 11:43pm

Too early to make that call but market grapewine is abuzz with news that the company is to announce an acquisition very soon.I hear that Kotak Mutual fund has turned very bullish on this stock.



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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: basant
Date Posted: 06/Sep/2006 at 10:40am

The economic times reported today that Gitanjali has finalised a US $ 40 million in the US. The proposed company runs about 100 stores and has annual sales of US $ 100 million. This acquisition could be very significant. The stock is up in circuit with over 1 lacs shares of outstanding buyers at Rs 206. Investors should continue to hold on.



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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: Ajith
Date Posted: 06/Sep/2006 at 11:40am
Gitanjali -business will really grow.I am a bit bothered about how they will raise equity.


Posted By: nikhil091
Date Posted: 10/Sep/2006 at 11:37am

What about new investors who want to purchase Gitanjali? Do you feel it still make sense to buy now or wait for some correction to pick the stock?



Posted By: Equity Buff
Date Posted: 12/Sep/2006 at 8:44pm
If you ask me, I think the story in Gitanjali gems is good and it can give good returns in the med to long term. FY07 EPS should be around Rs. 17 so it is trading at a P/E of approx 12 which is not expensive given growth visibility. I think one can buy part qty at this price and buy more incase the stock falls. It is finally your call.
 
Equity Buff.


Posted By: s_praharaj
Date Posted: 14/Sep/2006 at 10:13pm
Basant,
 
Let me congratulate you to start such a wonderful forum. You have made a interesting website and beleive me, I am quite impressed by your endeavours and equity analysis.
 
I would like to know a couple of things about Gitanjali Gems.
 
1. I do not know about the quality of Management, their integrity and sincerity to the shareholders.
 
2. Further, who are their suppliers, whether the present management also  are manufacturers and suppliers of the diamond jewellery through other companies.
 
3. Though it sales under four reputed brands, will it be able to give a good competition to Tanishq.
 
4. When the company will be able to reap the benefit from its SEEPZ operation of Hyderabad.
 
As of now it seems the company has a great future and the demand for diamond jewellery are increasing. Will it be OK to buy at this price or wait for a correction. 
 
Shashi S. Praharaj


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Shashi Praharaj


Posted By: basant
Date Posted: 14/Sep/2006 at 10:33pm
Thank you for your kind words. The management is fairly unknown to stock market circles. Privately management do various things but it is only after a shareholder has seen him for about one full business cycle that he can make up his mind of the integrity. So to me that remians an area where we would neither be positive nor negative.
 
Majority of their jewellery is manufactured internelly and they also get some from other suppliers.Gitanjali supplies to groups such as Sterling JC Penny etc in the exports market.
 
I would rate Tanishq on a higher scale simply because we have seen how Titan has gown. The Indian jewellery market is Rs 40,000 crores and the organized segment is only 10% of that. SO I do not think that there would be any big competitive pressures building up within the industry. Both should do very well.
 
SEZ is still 2 years away. In fact they plan to have jewellery manufacturers in their SEZ so that they could source their requirements from them.
 
This market listens to no one sir nor can we understand what it has in its mind. I would rather buy something and then as prices fall (whenever they do) I would buy more. In fact when ever I like a stock I take an initial exposure and then build it up from there. Now if you buy you may see prices falling and if you don't, prices could just keep going up. That is how strangely this market behaves at times.


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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: Equity Buff
Date Posted: 14/Sep/2006 at 8:43am
Dear Basant,
 
Yes, I completely agree. If one likes a stock and if it is reasonably priced(on valuation parameters) then one should immediately buy part quantity. Then if the price falls add more. As you rightly said the market does not wait for or listen to anyone. It has a mind of its own.
 
Rgds.
 


Posted By: ashwin.adsouza
Date Posted: 15/Sep/2006 at 1:26pm
Dear Basant,
 
Are other stocks like Goldiam, Vaibhav and Srenuj as good as Gitanjali? They all deal in Jewellery and have plans for retail ventures. Also the PE of most of these jewelery stocks are in single digits.
 
Do you like any other jewellery stocks?
 
Thanks,
Ashwin.


Posted By: basant
Date Posted: 15/Sep/2006 at 3:02pm
Goldiam is good but I have not studies it. On the other hand Titan and Gitanjali (in that order) have a great first mover advantage. The others I would try to avoid.
 
Now every one would try and get into jewellery retailing but the trick is to stay with the sector leaders (No. 1 and No. 2) only.
 
Generally while the PE ratio is important I would look at other things also. We discussed how http://www.theequitydesk.com/forum/forum_posts.asp?TID=264 - we missed Infosys by looking at the PE ratio.If a company can get its plan correct the PE would not matter because the EPS growth would make the stock cheap again. People have been blowing the whistle on Titan since it was at Rs 160 but the stock keeps moving up inspite of having a high PE.Same with HDFC bank.
 
High PE stocks do carry some inherrent risks and are sharply volatile at times.


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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: manoj
Date Posted: 04/Nov/2006 at 11:31pm
Basant ji what is your take on Suashish Diamond, its equity base is very small.


Posted By: Ajith
Date Posted: 04/Nov/2006 at 8:18am
I would agree that Titan with the TATA name might take a slice of the huge market because crediblity is very important.Also much depends on how the important Chennai market is tackled because that is the largest.Here in Kerala the fight will be fierce.The local players- Joy Alukkas(expected to list, they stock Gitanjali's products ),Sunny Jacob(superb Belgian-cut diamonds),Alappat,Josco,Sky,Malabar Gold...,have very very deep pockets(some of them have a base in the Gulf) and have cornered the most prime locations and are now venturing out to the metros.
 


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Ajith


Posted By: basant
Date Posted: 04/Nov/2006 at 9:33am
Suashish Diamond: Never looked at this but I prefer to be in the top two of each sector especially when the market cap is so low.

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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: Ajith
Date Posted: 04/Nov/2006 at 9:44am

Mr.Basant,you are right about sector leadership.Mcdowell results were stunning compared to the average performance of Radico.



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Ajith


Posted By: s_praharaj
Date Posted: 04/Nov/2006 at 11:38am
Is there any idea, whether Gitanjali 2nd Quarterly results are out.

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Shashi Praharaj


Posted By: marketbuzz
Date Posted: 05/Nov/2006 at 1:05pm
Vaibhav Gems has posted excellent numbers for Sep06 quater.
Also valaution seems correct. I m looking for buying it.


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I do it becoz I Like it!


Posted By: marketbuzz
Date Posted: 05/Nov/2006 at 1:07pm
Gitanjalee results are also out. It has posted 22Cr profit on sales of 499.5 Cr. Stock can see a upside.


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I do it becoz I Like it!


Posted By: nikhil090
Date Posted: 21/Nov/2006 at 1:19pm
I have brought Gitanjali in small quantities.However, I am having concern on the stock due to the following factors - (a) There is no information available about the company from the managment (I have not come across their website) (B) Traditionally, the jewellery companies have traded at very low P/E ratio - Suraj Dia etc are example (C) Though the promoter stake is high, I dont know anything about the promoter track record (D)Most of the jewellery industry does not exhibit strong corporate governance norms.
Pls guide so as to take appropriate decision


Posted By: basant
Date Posted: 21/Nov/2006 at 7:57pm
(a) There is no information available about the company from the managment (I have not come across their website)
 
Look at moneycontrol for management interviews. 
 
(B) Traditionally, the jewellery companies have traded at very low P/E ratio - Suraj Dia etc are example
Compare Gitanjali to Titan as it is in jewellery retailing so growth will be higher here.
 
(C) Though the promoter stake is high, I dont know anything about the promoter track record
New company track record is still to come out.
 
(D)Most of the jewellery industry does not exhibit strong corporate governance norms.
Yes, that is a concern but we should not make that a sweeping remark let us see if the company does somethingwrong first.


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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: varindermann
Date Posted: 24/Nov/2006 at 1:05pm
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Expecting Rs 3000 cr from SEZs: Gitanjali Gems

Gitanjali Gems has got a nod for setting up its second SEZ at Panvel, near Mumbai.

CMD of http://www.moneycontrol.com/india/stockpricequote/diamondjewellery/gitanjaligems/13/28/pricechartquote/marketprice/GG03 - Gitanjali Gems , Mehul Choksi says presently the company has applied for 25 acres land in Panvel, which will be expanded up to 100 acre. He gives further details on the same, along with the company's Hyderabad SEZ.

Excerpts from CNBC-TV18's exclusive interview with Mehul Choksi:

Q: What is the timetable, the cost for this new SEZ and how are you raising the money?

A: Presently, we have applied for 25 acres land for the Panvel SEZ, which we will expand up to 100 acre. The Hyderabad SEZ will be ready and functional by end of this year.

As far as Panvel SEZ is concerned, it will take next one and half years. We are expecting a total investment of nearly Rs 1,500 crore between the two SEZs and this is over two-three year's time. The infrastructure will be build up on a total of 13.5 million sq ft land.

Q: How are you raising this Rs 1500 crore?

A: That is through debt and equity, both together.

Q: Will the revenues of the Hyderabad SEZ essentially kick in the Q4 of this financial year, in the December to March quarter?

A: That’s correct.

Q: How much of an incremental revenue will you see from this for the financial year?

A: For this financial year, we are not expecting anything great, but when both these SEZs will be fully operational, we expect more than Rs 3,000 crore rental revenues from them.

Q: How much of the land acquisition is completed for the Hyderabad SEZ and how many tenants have you already got for it?

A: Between diamond and jewellery space, nearly 50 companies have shown interest to start-up their operations. Some are based in India, while some are international.

Q: What percentage of SEZ does that occupy; these 50 intentions?

A: Nearly 50% of the entire space.

Q: Any further fund raising plans that you have for the next financial year in mind?

A: Nothing decided as yet.     




Posted By: nikhil090
Date Posted: 27/Nov/2006 at 6:24pm
I saw some big trades happening at the Stock exchanges today in Gitanjali. shares traded were in excess of 50L on both exchanges. Any idea of who may be interested?
Thanks..


Posted By: India_Bull
Date Posted: 27/Nov/2006 at 8:17pm
All Jewellary stocks up substantially in the market today?
 
Any idea / development?


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India_Bull forever Bull !
www.kapilcomedynights.com


Posted By: nikhil090
Date Posted: 27/Nov/2006 at 9:44pm
The latest update from the company from the NSE website:
Gitanjali Gems Limited has informed the Exchange that the company (GGL), a Mumbai based diamond and jewellery manufacturing and retailing company, has issued USD 110.0 million (approx Rs.495 crores) of Foreign Currency Convertible Bonds (FCCBs). The proceeds of the issue shall be utilized to cater to the Company's capital expenditure requirements and acquisitions. The FCCBs will have a maturity of five years and one day and will be convertible into equity shares of the Company at a conversion price of Rs.275 per share, which is a premium of approximately 28%, on the Bombay Stock Exchange price (BSE) on November 24,2006. The FCCBs will mature on November 25,2011.
This dilution will increase equity by 18 crores to 76 crores(30% dilution). Also this announcement has come after the stock spurted 8% today. Any comments on this news? What does it mean for the stock and future potential?


Posted By: varindermann
Date Posted: 27/Nov/2006 at 11:37am
Hello Basant Ji,
 
I have recently bought into Gitanjali Gems.
 
Gitanjali Gems ltd. has come out with an FCCB issue convertible in to equity shares at Rs. 275/share after 5 years. This would result in equity dilution but if the money raised is wisely invested would result in higher profits ans thus higher share price. What is your view on this development?


Posted By: basant
Date Posted: 27/Nov/2006 at 11:44am
Absolutely. As long as they do not let the RoE drop from this excess cash raised i think it should be OK. This company looks good the sheer scale of opportunity is huge.

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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: varindermann
Date Posted: 20/Dec/2006 at 10:58am
Hi Basant Ji,
 
U might be already aware of the fact that Gitanjali Gems has acquired a 100 year old US jewellery retail chain with 97 stores. Gitanjali management believes no of stores can be incresed to 250 with the same management.  It stands at No. 8 in US in term of sales. The price Gitanjali paid is 100 crores plus Rs 100 crore they will put in it as working capital. Its last year saless were Rs. 450 crores with a net profit of arpund Rs. 22 crores. Gitanjali management is looking to improve its net profit margin from 5%-7% to 12%-15%. Please go through the management interview by clicking on the following hyperlink.  What is your view on the takeover ?
 
http://www.moneycontrol.com/india/news/business/gitanjaligems/buywillboostbottomlinegitanjaligems/market/stocks/article/257609 - http://www.moneycontrol.com/india/news/business/gitanjaligems/buywillboostbottomlinegitanjaligems/market/stocks/article/257609


Posted By: nikhil090
Date Posted: 04/Jan/2007 at 8:15pm
Gitanjali to start channel finance
Pradipta Mukherjee / Kolkata January 4, 2007
In an attempt to grow organized jewellery retailing in the country, the Rs 2,500 crore Gitanjali Gems would soon introduce channel finance for its existing business partners.
 
The company is talking to nationalised banks as well as private players to help its channel partners get financial help to reach bigger markets.
 
“This would open new vistas to trade and banking. We project increased growth of organized jewellery retail through this channel finance arrangement,” said Manjunath Jyothinagar, group president - jewellery business, Gitanjali group of companies.
 
The company is also consolidating its operations at the backend and has made stronger foray in the multi brand format store for all its brands, namely D’Damas, Asmi, Nakshatra, Sangini, Gili, Desire .
 
“By March-end, we will have 15 multi brand stores across the country with investment ranging from Rs 2.5 crore to Rs 5 crore per store. We plan to set up 72 stores across Tier I and II cities in the country by March 2008. We are also tying up for space in the prominent locations inside the malls and in high streets for augmenting our plans,” said Jyothinagar.
 
The company would continue to grow its business both organically and inorganically.
 
“The future acquisitions or collaborations would help forward integration as our strategy is to emerge as a global brand,” said Jyothinagar.


Posted By: manoj
Date Posted: 04/Jan/2007 at 9:44am
Dear board members pls guide/ help me where to find any info about "suashish diamond". This stock is hitting ckt for the last ten days and I am unable to decide what to do as I invested in this share long time back at Rs. 30/-


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manoj


Posted By: nikhil090
Date Posted: 06/Jan/2007 at 9:02pm
Gitanjali Gems Ltd has announced that Gitanjali Infratech Ltd (GIL) was incorporated under the Companies Act, 1956 as its wholly owned subsidiary.
This is for taking up the setting of SEZ for Gems and Jewellery


Posted By: nikhil090
Date Posted: 06/Jan/2007 at 9:04pm
Gitanjali Gems Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 05, 2007 have

1. Increase in Authorised Share Capital of the Company from Rs 75 Crores to Rs 120 Crores, and Alteration of Clause V of the Memorandum of Association of the Company.

2. Increase in Borrowing Powers of the Board under Section 293 (1)(d) of the Companies Act, 1956 upto Rs 2500 Crores.

5. Issue of 15,54,050 equity shares through Preferential Allotment on Private Placement Basis.
 
These are very big sums. i hope they dont have to use all of that, otherwise as shareholders we may have to wait for years.


Posted By: basant
Date Posted: 06/Jan/2007 at 6:54am
Does not matter as long as they maintain their RoCE and RoE. It is only when these ratios drop that shareholders start feeling the pinch.

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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: nikhil090
Date Posted: 06/Jan/2007 at 8:47am
I also meant the same. To usefully deploy all the money and start getting returns, it takes time. Till that time ROE will be depressed. Hence the waiting period could be longer.


Posted By: kulman
Date Posted: 06/Jan/2007 at 8:53am

Buffet, while answering a query on on ROE, had said this:

 
It is very hard to earn a lot as an investor when the business you are in doesn't earn very much money.-Warren Buffet
 
 


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Life can only be understood backwards—but it must be lived forwards


Posted By: basant
Date Posted: 06/Jan/2007 at 11:23am
WHile investing I tend to look at the RoE more then the PE. Also good companies never let the RoE fall to less then 20%. In case there is new business waiting to contribute to the bottomline the market never sells off the stock since its discounted in the price very quickly but if the gestation is longer then 12 - 18 months then there is a problem.

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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: nikhil090
Date Posted: 06/Jan/2007 at 11:47am
I agree. However, I have seen that many companies have not invested the entire money raised even in IPO and are looking for raising more capital/have raised more capital. For Gitanjali gems itself, they had 188 cr unutilized IPO funds as of Sept 2006. After that they raised more money through QIP and now provision for this big investment/fund raising. They have used some money in the acquisition but i dont know whether they can use all money fast enough, in good investments.
That is my only concern..


Posted By: basant
Date Posted: 07/Jan/2007 at 12:08pm
Very genuine reasons you have put up but sometimes companies keep some cash ready like TV18 keeps cash since it would need to do an all cash acquisition similarily with Infosys but we cannot compare Gitanjali to those.SOmehow Though Gitanjali has good potential I feel Titan is a better prick Gitanjali is all over the place you do not know what they are doing but Titan with Tanishq is more focussed.

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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: nikhil090
Date Posted: 07/Jan/2007 at 12:21pm
Gitanjali has an advantage over Titan i.e they do their own manufacturing/sourcing of diamonds and jewellery. They are much more backward integrated than Titan. I feel Mehul choksi is very smart in his business ( i will rate them over Tata). they have top5 brands, out of top 10 in the jewellery space. The only issue which bothers me is equity dilution and corporate governance (about which I do not know anything). I have burnt my fingers in Alok where in I Held the stock for 2 years ( 2 of the best years, Indian markets ever saw) and the stock moved no where. That was because their equity increased from 75-80 cr to 180 cr in this period. For same reason I sold Bartronics when the management ratified the plan to raise/fund 250 cr+ facility as it involved substantial dilution of equity and long gestation period.
Till now Gitanjali has been focussing on improving its jewellery business and tapping opportunities therewith through various means. But as soon as I get more information about the purpose of raising money and the gestation period I would review my holdings and then take a call.


Posted By: varindermann
Date Posted: 16/Jan/2007 at 6:06pm
Sir,
How to  calculate RoE ?


Posted By: basant
Date Posted: 16/Jan/2007 at 6:21pm
Net profit/Shareholders funds
 
              OR
 
      EPS/Book Value
 
SHareholder funds = Equity Share Capital plus All reserves.


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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: varindermann
Date Posted: 16/Jan/2007 at 6:24pm

 ive read somewhere  that RoE formula is    (Net Profit divided by shareholders equity) * 100

I am confused about how to calculate "Shareholder's Equity". Is it the networth of a company?  I would be really thankful to you if you can help me with that.


Posted By: basant
Date Posted: 16/Jan/2007 at 7:31pm
Ok I forgot to put that hundred but it does not matter because after you multiply it by 100 the answer that you get is in percentage. 80% also means 0.8.
 
Shareholders equity and Networth are one and the same.


-------------
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: nikhil090
Date Posted: 23/Jan/2007 at 10:45am
Gitanjali Gems have come out with good consolidated results for the quarter. They had sales of @800 cr (jewellery sales of 250 cr) and NP is around 31 cr which is double of what they did year earlier.. Assuming all FCCB's would be converted into shares, the equity however would increase to 77 cr..
Also there CFO has said in interview with CNBC that the resolution to raise 2500 cr is only an enabling resolution. There are no plans to raise more money as of now..
Overall good performance.. let see how they deliver in future..


Posted By: basant
Date Posted: 23/Jan/2007 at 10:53am
I have never seen a company let go an enabling resolution as a waste. They always find ways to raise that money and use it - courtesy our investment Bankers!!!

-------------
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: nikhil090
Date Posted: 23/Jan/2007 at 10:57am
I can only hope that they do not need all this money soon.. otherwise Mehul choksey will build an empire and I would still be holding shares without gain..


Posted By: varindermann
Date Posted: 23/Jan/2007 at 11:07am
Please tell me - What is "enabling resolution" ? How does it affect EPS ? Recently I have bought into Gitanjali around Rs. 200 .  Results are very good by growth in EPS is a lot less as compared to growth in Net profit - so thats a worry.


Posted By: nikhil090
Date Posted: 23/Jan/2007 at 11:16am
Here the enabling resolution will mean that the company has got permission from the board to raise a certain amount of money through the investments approved. I dont think the effect of equity dilution is coming as of now. They have raised 110 million USD through FCCB which would be converted over a period of time. At that time you can see that Net profit growth is higher than EPS growth. As of now it should be the same except when they diluted equit at the time of Public issue..


Posted By: nikhil090
Date Posted: 02/Feb/2007 at 11:08pm
Goldman Sachs has bought 29 Lakh shares at 245/-. Citigroup also bought 3 L shares. Big buying by Goldman..
On 2nd thought, GOldman Sachs has picked up more than 4% of the expanded equity.. I would say closer to 5%.


Posted By: nikhil090
Date Posted: 14/Feb/2007 at 2:32pm
Gitanjali Gems purchases majority stake in Tri-Star Worldwide LLC

News Body:
Gitanjali Gems Ltd has informed BSE that in line with the management’s perception on expansion and further acquisition, the Company has purchased a majority interest in Tri-Star Worldwide LLC.

Tri-Star Worldwide LLC is a BHP Billiton direct customer and a CANADMARK licensee. It's a manufacturer and global distributor of Canadia® brand diamonds and diamond jewelry.

Partnering with Tri-Star will provide the Company with an opportunity to be a part of the finest "Mined in Canada" branded offering available to the market today.

Tri-Star Worldwide LLC was founded by Beny Sofer & Sons, LLC in 2002. Canadia diamonds and diamond jewelry is sold by fine jewelry retailers around the world, including Australia, Canada, England, Ireland, Northern Ireland, New Zealand, Scotland, and the United States which began as a branded loose diamond from the recently discovered rich diamond resources in the Northwest Territories of Canada and was one of the first to offer country of origin certification, along with comprehensive marketing support.





Posted By: Mr. V
Date Posted: 02/Mar/2007 at 5:55am
Excellent discussion going on here.

Ever since my wife has been asking or should I say threatening me for a diamond ring for her next birthday, I have got interested in jewellery stocks :-) I am sure the market for such husbands is quite big.

Then again, the smart husbands gift a jewellery company stock that has the potential to evolve into a massive diamond jewellery set than buy the ring.

I have been trying to understand Gitanjili Gems' business and one of things that I am very intrigued about is their revenues. It seems like only 30-50% of their revenues is from the Jewellery business. Where does the rest come from ?

Also, there is the following quote from one of their management interviews.

Q: How much of an incremental revenue will you see from this for the financial year?

A: For this financial year, we are not expecting anything great, but when both these SEZs will be fully operational, we expect more than Rs 3,000 crore rental revenues from them.


What does this mean ? Are they trying to say that they are a real estate rental company ? 3000 crores is a massive amount and I don't quite get the logic behind such a revenue source for a Jewellery company.

Can't any player with sh*tload of cash get into the same business of acquiring SEZ land and renting it out ?
What's the comparitive advantage that Gitanjali has that others don't ?


Posted By: nikhil090
Date Posted: 02/Mar/2007 at 9:17am
The advantage of Gitanjali is
1. It is completely integrated from diamond cutting/polishing to jewellery retailing not only in India but in US also through the acquisitions
2. They own 5 of the top 10 brands in the Indian jewellery space - Asmi, Nakshatra etc
3. They are developing 2 SEZ's for the jewellery industry (I guess manufacturing) in Maharashtra and Andhra pradesh - it would be a sustainable source of rental income to them. I dont think it would be so big as highlighted by them but it would be significant.
4. They are as of now focussed only on Gems and Jewellery industry and that is their core competency.
 
The only question mark is whether they would be able to execute well and whether the management has the bandwith to handle all these initiatives and capitalise on them.


Posted By: Mr. V
Date Posted: 04/Mar/2007 at 2:57am
Thanks Nikhil.

It seems the management has been raising a lot of money through equity dilution. I have been finding a lot of conflicting numbers for the expanded equity.

Can some one please provide the exact equity capital, taking into consideration all future conversions.


Posted By: Equity Buff
Date Posted: 11/Mar/2007 at 4:29pm

Source: IRIS NEWS DIGEST (10 March 2007)

Gitanjali Group, the country`s leading diamond and jewellery manufacturer and retailer, is likely to foray into lifestyle retail, reports Economic Times. The Rs 30 billion gems and jewellery major plans to set up its own malls with a focus on the luxury segment.

For foraying into non-jewellery retail, Gitanjali Group is likely to set up a separate company Gitanjali Lifestyle. It is expected that the group would announce its lifestyle retail foray in the next two-three weeks.

Apart from launching luxury malls housing, high-end apparel and accessories brands, Gitanjali Lifestyle would also launch malls catering to the masses. It has begun talks with real estate developers for its proposed malls. The initial investment in the non-jewellery retail foray is estimated to be over Rs 1 billion.

Gitanjali Gems, the flagship company of the group, is a leading DTC sightholder in India and has brands like Nakshatra, Asmi, Gili, D`Damas, Collection, Gold Expressions and Vivaha Gold.

Last month, Gitanjali Gems acquired a majority interest in Tri-Star Worldwide, a manufacturer and global distributor of the Canadia brand diamonds and diamond jewellery, for an undisclosed sum.





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"Time is on your side when you own shares of superior companies". Peter Lynch.


Posted By: basant
Date Posted: 11/Mar/2007 at 4:37pm
Now why would they like to get into this new space. They neither have deep pockets nor have any first mover advantage!
 
 


-------------
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: nikhil090
Date Posted: 11/Mar/2007 at 4:49pm
Yes. It is intriguing.. They are trying to do too many things if they are serious about this one also... Management bandwith will become a constraint besides the complete logic itself.


Posted By: Equity Buff
Date Posted: 11/Mar/2007 at 4:52pm
Originally posted by basant

Now why would they like to get into this new space. They neither have deep pockets nor have any first mover advantage!
 
 
 
Even I was thinking the same thing .
 
Rgds.


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"Time is on your side when you own shares of superior companies". Peter Lynch.


Posted By: sunny_agarwal
Date Posted: 11/Mar/2007 at 5:40pm
gitanjali gems is one company which is trying to do too many things at the same time:
 
1) sez project which is expected to add significantly to its bottom line. but god knows when will  the revenues start flowing from. according to my findings it could be a long wait before the revenues actually start flowing in from this project.
 
2) company is aaggresively accquiring companys aborad and in india.
 
3) they have strong brands in india which are quite popular in almost every indian household.
 
4) now they are trying to create their own retail malls across cities by the name of gitanjali lifestyle...sounds interesting.
 
5) the management is also quite experienced and have a long history in this field. Mr. mehul choksi as i know is a great human being an a very hard working person.( hes too overweight but......should reduce otherwise it could lead to heart problems...which could prove fatal for sharholders).
 
 
it seems that the management is very aggresively trying to expand its operations but company should not try to diversify itself in too many businesses. but still the retail foray i believe should be a good move by the company and benefit to unlock and create shareholder value over the long term. we should also not forget that gitanjali gems is one of the largest branded jewellery company in india., where this industry is still in a nsacent stage and has a huge growth potential.
 
thanks and regards.
 
 


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Be the change you wish to see in this world!!!


Posted By: nikhil090
Date Posted: 11/Mar/2007 at 5:51pm
There are some concerns about Gitanjali which I have highlighted earlier in the thread..
if some one can throw some light on those, it would be helpful to understand the company.


Posted By: sunny_agarwal
Date Posted: 11/Mar/2007 at 5:56pm

generally the stock prices and its movements are not discussed in this forum but i would like to add a piece of small information in context to gitanjali gems:

the stock price of gitanjali gems has been moving in a range for quite a long time now. the range between 180 and 235 seems to be the one. generally this kind of behaviour of price reflects the accumulation and strength the counter is gaining to move toward higher levels. strong accumulation by FII,s in the past 4-5 months saya a lot about this script. see we all know that gitanjali gems deserves higher price levels and it is quite visible that gitanjali will trade at much higher levels in the months to come. smart money is clearly flowing in.
 
i think it could be a good buy at current market price for risk takers.
 
we investors having invested our money in stocks should not only focus on growth and value and only go by financial statements. we should consider all the aspects of stock markets and  focus on catalysts and movements of share prices also. it is an integral part of financial markets.i hope other members agree to it.
 


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Be the change you wish to see in this world!!!


Posted By: omshivaya
Date Posted: 11/Mar/2007 at 7:40pm

Originally posted by sunny_agarwal

 
we investors having invested our money in stocks should not only focus on growth and value and only go by financial statements. we should consider all the aspects of stock markets and  focus on catalysts and movements of share prices also. it is an integral part of financial markets.i hope other members agree to it.
 

With all due respect Sunny ji, I would like to point out what usually I do.
 
 
I consider these aspects while investing:
 
1) Management-credibility
2) Growth
3) Value
4) Financial Statements
5) Any fundamental change in the outlook, which may include some news-flow. (For e.g. ACOM order of Nucleus Software)
 
 
 
Any other aspects, including momentum of stocks, looking at prices(regularly) of stocks and how it has moved is what I totally DO NOT LIKE and will NEVER EVER LOOK FOR. So, I disagree with you, sorry. That is typically what TEDdies are trying to move away from, as far as my knowledge is concerned.
 
 


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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it


Posted By: nikhil090
Date Posted: 11/Mar/2007 at 9:01pm
Sunny,
 
I agree with you on some part of your argument. We should look at the overall stock market. It gives you a sense and prepares you for the next move. It also helps to understand the fear/greed component present in the stock market.
But at the end of the day, it is the fundamentals that matter. Technicals and associated movement do not change the fundamental business. Also it is very difficult to say anything about the market movements. Almost nobody gets it right consistently. for ex, Gitanjali fell to a low of 110 in may crash. Fundamentally at that point it became very attractive but not from technical viewpoint. Same now also.. If by March end market crashes by 1000 points and then Gitanjali falls to 160/- what should we do as fundamentals and technicals will oppose each other..
My view is that it is difficult to move with too many factors in your mind.. You can just follow one investment principle.. say value or growth or technical etc etc. If you follow many different views, then you will get confused and unable to take the right call consistently.


Posted By: sunny_agarwal
Date Posted: 11/Mar/2007 at 9:20pm

hello nikhil,

u r absolutely right in a way. but  what i am just trying to say is that an investor has to be flexible in his approach towards markets. obviously gitanjali gems at 140-150 would be a good buy and i would definitely go ahead and grab it at that price whether technicals allow me or not.

but as an active participant in markets and a intelligent and a smart investor one would  definitely want to identify and sense opportunities which others just fail to identify.
 
I my self am an value investor to the core but i also look out for extraordinary opportunities which can create significant wealth for me.
 
nikhil i must tell u that i really liked the way u expressed urself and replied to my post. ur reasoning was commendable.
 
thanks and regards
sunny


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Be the change you wish to see in this world!!!


Posted By: nikhil090
Date Posted: 11/Mar/2007 at 9:49pm
Hi sunny,
I would point out a quote from the Buffetologist of the forum (Mr. Kulman) at this moment
 
As Ben Graham said, “In the long run, the market is a weighing machine—in the short run, a voting machine.”
 
It is difficult to consistently profit from the short term aberations in the market. If you can manage to do it , it is great.. Best of Luck for that..


Posted By: sunny_agarwal
Date Posted: 11/Mar/2007 at 10:20pm
Mr NIKHIL JI,
 
I Really appreciate ur quote. Even I am a long term investor, but i also like to get flamboyant sometimes and look for some short term opportunities. I trade may be once a month and that too a stock within my circle of competence. I closely follow my stocks and look for opportunites to trade in them. otherwise even i am strictly against day trading and taking speculative delivery of shares., without having much information about them. i dont sell them easily nor i buy them so easily.
 
thanks and regards.
 


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Be the change you wish to see in this world!!!


Posted By: sunny_agarwal
Date Posted: 11/Mar/2007 at 10:24pm

Attn: Basant ji, Om Shivay Ji, and other respected members of The Equity

           Desk

 

I am really enlightened by looking at the bonding and the sense of understanding which has developed within the members of TED. It seems that all the members have very clear in their mind their approach towards market and their ways to invest, courtesy Basant ji.

 

But i must say that few members have got me wrong on my reasoning. Being an investor myself i always look forward to grab and create every possible opoortunity i can. I have never tried to criticize the viewoint of TED. I had been closely following  almost all the posts and messages in this site for the past six months and finally decided to join this forum after being simply mesmerized by the logic and thought process behind all ur reasonings. Me being  a member Of TED now  would not accept any call against it.

 

I never said that stocks followed here have no future. obviously all the companies discussed are great and have great future ahead. These stocks have huge scalability ahead. no doubt. I believe in investing in companies which people generally dont talk about and their potential are yet to be identified by markets. and must say that the return of finding such stocks are huge and highly rewarding.

 

See, to be successful as a team we all need to work and think in one direction but that direction is achieved after different minds express their views and if everybody has the same thinking and and mindset  then it becomes difficult to evaluate where the team stands.  Different views only lead to more questions and hence leads to more clarity in thind minds of team members.

 

Markets are all about identifying new ideas and that is what most of us do all the time. In short we must look for the next financial technologies and the next future pantaloons.

 

And now being a Part of TED family i will try my best and give it all to ensure the ethnicity of TED and Always be with Basant ji and all of you to take TED to new heights and make TED a bigger and better online portal than google and make it the largest viewing financial web page in the world.

 

    " I LOve The Equity Desk"

 



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Be the change you wish to see in this world!!!


Posted By: basant
Date Posted: 11/Mar/2007 at 10:40pm
Thanks for that very clear message but we did not take you to be wrong we were just expressing our point of view. ALso this bonding has come from investing reasons rather then anything else and surely we respect your opinion and are always open to any idea that you may generate.
 
Generally all of us want to look for the next Pantaloon or the next FT. Who wants to take a 5 bagger if he can get a 50-60 bagger but with the kind of markets that we are in it would need sopme special effort to look for that isolated idea since all stocks are priced in to their current performance. Money is made when the PE expands but from the present  state of things it would take some doing if we can identify a 50 bagger from these levels.
 
In cricket as they say when the pitch takes a lot of turn a run rate of 4.5 per over is considered good and ona  flat placid track a team can get a run rate of 7 an over and even lose a match.I hope you get the analogy correct.
 
Looking forward to your active participation in the days to come.


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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: sunny_agarwal
Date Posted: 11/Mar/2007 at 10:50pm
very well said sir..........i completely agree
 
thank u so much.
 
 " one has too loose many a battles to win a war"


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Be the change you wish to see in this world!!!


Posted By: nikhil090
Date Posted: 11/Mar/2007 at 10:51pm
Originally posted by sunny_agarwal

Mr NIKHIL JI,
 
I Really appreciate ur quote. Even I am a long term investor, but i also like to get flamboyant sometimes and look for some short term opportunities. I trade may be once a month and that too a stock within my circle of competence. I closely follow my stocks and look for opportunites to trade in them. otherwise even i am strictly against day trading and taking speculative delivery of shares., without having much information about them. i dont sell them easily nor i buy them so easily.
 
thanks and regards.
 
 
As said in this forum somewhere, people make money in this market by different strategies. However you should follow the strategy that works for you.
Best of Luck and happy investing.


Posted By: omshivaya
Date Posted: 11/Mar/2007 at 1:18am

Originally posted by sunny_agarwal

Attn: Basant ji, Om Shivay Ji, and other respected members of The Equity

           Desk

 

But i must say that few members have got me wrong on my reasoning. 

 
OmShivaya: I don't think anyone has. It's just that like the way you are sharing your thoughts, we are also doing so. That is what makes TED great. Please do not take things personally as that was not any TEDdy's motive I assure you.
 
 
Me being  a member Of TED now  would not accept any call against it.
OmShivaya: You should follow what your sound reasoning alongwith a pinch of heart, tells you to do. Don't do something just bcoz you are part of TED, bcoz that would take away the essence of TED. TED is very individualistic for each person but at the same time it has certain common core values too, such as value investing and long-term approach.

I never said that stocks followed here have no future.  

OmShivaya: No one ever said that you did. We are also discussing Sunny ji...it's all a part of the arguement. We love arguements...healthy arguements that is Big%20smile
 
See, to be successful as a team we all need to work and think in one direction but that direction is achieved after different minds express their views and if everybody has the same thinking and and mindset  then it becomes difficult to evaluate where the team stands.  Different views only lead to more questions and hence leads to more clarity in thind minds of team members.

OmShivaya: This is exactly what all TEDdies do, question and question and question and q....till it is all clear. In fact, I am more irritating at questioning than probably even you so don't pain yourself. Many a times I feel I should be kicked for asking even the most basic of questions, but fortunately for me, Basant sir has been kind enuff not to use his charan padukas on me hehe LOL

 
 

    " I LOve The Equity Desk"

OmShivaya: Oh boy, don't we all. Welcummmm Sanjay sir jiiiiii Wink. We are very deep and close friends, bonded with a common target: REAL INVESTING!

 



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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it


Posted By: BULLSEYE
Date Posted: 31/Mar/2007 at 6:41pm
NEW DELHI: Gems and jewellery major Gitanjali Group is close to tying up with a leading Australian health and beauty retail chain to introduce it in India. With its foray into healthcare retail, Gitanjali would join the ranks of FMCG major Dabur and Fortis HealthWorld, the new entrants in the health and wellness retail space.

While Fortis HealthWorld has already begun rolling out its stores across Delhi-NCR, Dabur recently announced its retail foray through a new subsidiary, H&B Stores Ltd, which plans to set up 350 stores in the next five years.

Gitanjali Group on Thursday announced its luxury retail foray through a new subsidiary, Luxury Connexions, which will set up luxury malls across the country at an initial investment of Rs 100 crore.

While wedding and luxury goods would be the focus of Luxury Connexions, Gitanjali Group is expected to sign a franchisee agreement with the $80-million Australian retail chain in another week or two, sources said. The chain is learnt to have a presence in New Zealand, too. Gitanjali chairman Mehul Choksi declined comment on the tie-up.

The first of Luxury Connexions’ malls is expected to come up before year-end in Hyderabad or Delhi. With wedding and luxury goods as the focus, these malls would have premium jewellery, apparel, accessories, fine dining and gifting brands.

Luxury Connexions has finalised talks with watch brand Saint Honore and leading jewellery brands Stefan Hafner and Iosi Scavia to be part of its luxury malls. The group’s own brands like Nakshatra, D’damas, Asmi and Sangini would also be retailed at outlets inside the malls.

Gitanjali would launch a high-end collection under the brands D’damas, Asmi and Sangini, available only in its luxury malls.

Apart from jewellery brands, it is also in talks with leading apparel brands in Denmark and the UK for its retail venture. The Indian luxury retail market is estimated to be about $500 million.

The group is also learnt to be in talks with a couple of US fast food chains to become their franchisee in India. Mr Choksi said that fine dining would be part of Luxury Connexions’ retail venture but refused to divulge further details
 
SOURCE.
http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Gitanjali_may_partner_Oz_retailer/articleshow/1835562.cms - http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Gitanjali_may_partner_Oz_retailer/articleshow/1835562.cms


Posted By: chic_1978
Date Posted: 11/Apr/2007 at 4:36pm
Similiarly all those who are banking heavily on so called performance of "Gitanjali Exports" beter be alert as all that shown & announced is a rosy picture.
 
This compnay was a junk couple of years back wherein their payments were late by almost 6-8 months to regular parties in diamond market. Trust me all the diamond guys know wot they are doing to show this huge turnover & profit on YOY basis.


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happy & wise investing


Posted By: BubbleVision
Date Posted: 11/Apr/2007 at 4:50pm
According to the GOI figures of monthly "Jewellery Exports"*, things are not looking good for this sector.
 
* Source CMIE monthly review of Indian Economy.


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You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer!


Posted By: chic_1978
Date Posted: 11/Apr/2007 at 7:17pm

The so called turnovers are nothing but simply branch transfers & back to fool investors & bankers....Basantjee chec with ne one working with UCO bank HQ in Kolkatta & they will tell you the facts about this company.



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happy & wise investing


Posted By: basant
Date Posted: 11/Apr/2007 at 7:24pm
I have no connection there but certainly we cannot discount anything in this world.

-------------
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: xbox
Date Posted: 11/Apr/2007 at 5:55am
This sector has oversupply Chore managements. Best avoidable.

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Don't bet on pig after all bull & bear in circle.


Posted By: Vivek Sukhani
Date Posted: 11/Apr/2007 at 8:48am
But tell me Chirag, how can one trick auditors ... there is specific accounting standard for revenue recognition.I think I saw its MD on NDTV's Boss' Day Out, some months back!!!! Didnt appear dishonest, but you know it better. True, the claims appear tall.... these are flashy businesses headed by flashy businessmen......but are comoanies like rajesh exports and Gitanjali also of the same league..... Goldiam looked very good to me at one point of time.
 
Good , you made me wake up at the right time...
 
Thanks Chirag,
 
Regards,
 
Vivek


Posted By: go4lalit
Date Posted: 11/Apr/2007 at 9:38am
I would like to avoid Gitanjali due to issues with management credibility. This kind of companies never create wealth in the long run.
 
The management have been giving contradictory info about their Hyd SEZ.
 
1. In this interview http://www.moneycontrol.com/india/news/business/gitanjaligemsgknair/havemarketshare/market/stocks/article/275210 - link . Management says SEZ work is as per schedule and will be fully functional in 3 years.

Q: One word on your SEZ plan. Could you tell us what the exact area of this SEZ is and by when it comes on stream?

A: As we have mentioned, we have 200 acres of land at Hyderabad's Shamshabad, which is 3 km away from the new airport that is coming up. All the plans that are being executed are quite as per what has been projected. We expect it to get up and running fully in the next three years time.

It will be in two phases - one is the non-processing sector, while the other is in the processing sector. The processing sector would be done first, work for which is already in full swing; the infrastructure development is happening and we see the target dates would be very much met.

 
2. In previous interview management said SEZ will be ready by 2007 and revenues will start flowing in Q4 2007. Here is the http://www.theequitydesk.com/forum/forum_posts.asp?TID=180&PN=4 - link

Q: What is the timetable, the cost for this new SEZ and how are you raising the money?

A. Presently, we have applied for 25 acres land for the Panvel SEZ, which we will expand up to 100 acre. The Hyderabad SEZ will be ready and functional by end of this year.

As far as Panvel SEZ is concerned, it will take next one and half years. We are expecting a total investment of nearly Rs 1,500 crore between the two SEZs and this is over two-three year's time. The infrastructure will be build up on a total of 13.5 million sq ft land.

Q: Will the revenues of the Hyderabad SEZ essentially kick in the Q4 of this financial year, in the December to March quarter?

A: That’s correct.

 
3. Their website http://www.gitanjaligroup.com - http://www.gitanjaligroup.com  refers in their
Future Growth -> Hyd SEZ section that SEZ will be ready by 2007.
 
 
In the recent interview when they say SEZ is goin in as per schedule and will be operational in 3 years, that puts serious question on the management credibility. Better to avoid such counters.
 


Posted By: chic_1978
Date Posted: 11/Apr/2007 at 9:53am

This sector has oversupply Chore managements. Best avoidable.

================================================
yes i agree with you, infact the general np that this sector shown is hardly 3%.  but the current generations coming in this sector are very smart & well educated....tr are really good companies as well but they are doing sufficient ground work before going public.....


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happy & wise investing


Posted By: chic_1978
Date Posted: 11/Apr/2007 at 9:56am

But tell me Chirag, how can one trick auditors ... there is specific accounting standard for revenue recognition

================================================
when i say branch tranfers it means not branch but tr own dummy co's.....so auditors & banks hv no objections as such....


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happy & wise investing


Posted By: s_praharaj
Date Posted: 12/Apr/2007 at 11:14pm
I have a token exposure in Gitanjali.
For sometime I was feeling a little uncomfortable seeing their spree of advertisement. My God, How much money they must be spending on advertisement and arranging beauty peagants. I don't know about the transfers and UCO Bank involvement discussed in this thread. But for last one month or so, there was a little apprehension. The report on slowing down of US spending on diamond jewellery added to my discomfort again.
 
True they have best brands, best stars advertising the product, maximum visibility through advertisements, so many sponsored shows, SEZs, acquisitions and so many other things, but of late I have a feel that they are going in a break neck speed.
 
Comming across the articles of last two days, I sold half of my holdings today at cost price. I don't know whether I have done right or wrong, but feeling a little better.
 
I know the management. They are just OK. but I don't know the younger generation.
 
Please post about any other developments.


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Shashi Praharaj


Posted By: basant
Date Posted: 12/Apr/2007 at 11:23pm
From whatever I know you will hear many things in  a market about any company. These are unsubstantiated. Gitanjali may go up or down that is another issue but acting on hearsay is certainly avoidable. There are several reasons to sell a stock and this should not be any of it.
 
Had I listened to it I would have sold off Pantaloon the moment I bought it because the biggest threat was proclaimed from one of the most reputed, media saavy, analysts of India. he said Biyani is interested in his stock price only and hence that investment is speculative. Now if a speculative investment can fetch a 50 bagger I would only invest in such companies each time.
 
This was a general comment without any reference to this any company.


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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: maveric
Date Posted: 24/Apr/2007 at 11:50am
Hi All
This is my first post, Gitanjali gems has informed exchange that they will declare only audited results by 30th June. Does any one know the reson for not declaring the unaudited result earlier

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Nothing is impossible


Posted By: basant
Date Posted: 24/Apr/2007 at 11:59am

Hi, No can't make any reason out of that.



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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: maveric
Date Posted: 25/Apr/2007 at 12:37pm
Hope bad performance is not the reason for delayed result anouncement.

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Nothing is impossible


Posted By: chic_1978
Date Posted: 25/Apr/2007 at 12:51pm
book adjustment my friend

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happy & wise investing


Posted By: basant
Date Posted: 09/May/2007 at 12:21pm
I think we should move this stock to the stock synopsis section. It has been making a lot of moves and creating headlines but they do appear to be non synchronised. We shall replace gitanjali with http://www.theequitydesk.com/forum/forum_posts.asp?TID=309&PN=1 - Titan in this section.

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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Posted By: varindermann
Date Posted: 15/Jun/2007 at 12:10pm
There is a news in economic times that Citigroup has acquired a 3.4% satake in Gitanjali Gems. Citigroup bought 1980000 shares at a price of 184.95/share.


Posted By: PKB2000
Date Posted: 22/Jun/2007 at 10:37pm
Originally posted by varindermann

There is a news in economic times that Citigroup has acquired a 3.4% satake in Gitanjali Gems. Citigroup bought 1980000 shares at a price of 184.95/share.
when there are sellers there must be some buyers  irrespective of it is PHOREN or DISI
 
Anyway do anyone have any news or information on Govt. consent/ approval on SEZ of GITJEM, please share.
 
 

June, 22 2007

News Subject:  

Gitanjali Gems - Disclosures under Reg.13(6) of SEBI (Prohibition of Insider Trading) Regulations, 1992

News Body:  

The Exchange has received the following disclosure under Regulation 13 (6) of SEBI (Prohibition of Insider Trading) Regulations, 1992:

Name & Address of Director / Officer / Shareholders

Date of acquisition / sale

Date of intimation to company

Mode of acquisition/sale

No. & % of shares of pre acquisition /sale Buy Qty Sell Qty

No. & % of shares of post acquisition/sale

Goldman Sachs Investments (Mauritius) I Ltd Apr 10, 2007 to Jun 14, 2007 Jun 18, 2007 Market 2,999,619 192,900 (0.32%) 2,388,341 (3.94%) 804,178 (1.33%)


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I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso


Posted By: kulman
Date Posted: 07/Sep/2007 at 3:53pm
Gitanjali Gems Ltd has informed BSE that the Company has made its foray into the software, technology and telecom business through the incorporation of a wholly owned subsidiary in the name of "Ivida Technologies Pvt Ltd", Mumbai.

Further the Company has informed that, the main objects of "Ivida Technologies Pvt Ltd" interalia includes Infrastructure Management viz. Hardware & Networking, Web Designing & Development, Enterprise Resource Planning, Media & Graphics, Software Exports, Knowledge Process Outsourcing etc.
 
 
-----------------------------------
 
Arey... Mehul bhai....kem chho? Shu karo chho?
 
 


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Life can only be understood backwards—but it must be lived forwards


Posted By: johnnybravo
Date Posted: 07/Sep/2007 at 6:44pm
[QUOTE]viz. Hardware & Networking, Web Designing & Development, Enterprise Resource Planning, Media & Graphics, Software Exports, Knowledge Process Outsourcing etc.[\QUOTE]

testing karwanu chee pachee coding karwanu chee....iamna business ma bahu profit chee ... patni bhai na joeea...LOL



Posted By: kulman
Date Posted: 07/Sep/2007 at 9:39am
Arey aapno Tushar bhai....tame pan Gujarati aawade chhe !!
 
 


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Life can only be understood backwards—but it must be lived forwards


Posted By: RITESH.KAMANI
Date Posted: 06/Nov/2007 at 9:52am
BUY GITANJALI GEMS
TITAN WITH 2200 CRORE TURNOVER HAS MARKET CAP OVER 7000 CRORE AND GITANJALI WITH 2200 CRORE TURNOVER HAS JUST 2000 CRORE MARKET CAP.
NO DOUBTS ON MAMAGEMENT.
1 YR TRGT==900

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Posted By: prashantmohta
Date Posted: 06/Nov/2007 at 11:20am
BUY GITANJALI GEMS
TITAN WITH 2200 CRORE TURNOVER HAS MARKET CAP OVER 7000 CRORE AND GITANJALI WITH 2200 CRORE TURNOVER HAS JUST 2000 CRORE MARKET CAP.
NO DOUBTS ON MAMAGEMENT.
1 YR TRGT==900

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this is may be because gitanjali gems has a net profit margin of 3.5%
titan has a net profit margin of..............................................  6%
 
it is my observation that higher the net profit margin higher the market cap to sales.


Posted By: kg
Date Posted: 09/Nov/2007 at 6:24pm
on the day of dhanteras i went to our jeweller and they were very apprehensive of gitanjali ...he mentioned tat the co is doing good in exports but dollar is biting in the profits and in their domestic business they are not able to pull customers thru their gili brand and the creditors are the worst hit lot ....he mentioned that no body wants to sell to mr choksi ..payments come only after an year !!!
 
 


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Lets rock


Posted By: basant
Date Posted: 09/Nov/2007 at 6:35pm
Originally posted by kg

he mentioned that no body wants to sell to mr choksi ..payments come only after an year !!!
 
 
 
ChokedWink.


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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in



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