Equity Buff.

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.

 

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.