Gitanjali Gems Ltd
Previous update: Click here
As expected the stock is not able to sustain above the trend line and now the sharp down move can take the stock to 313.5 and 300.1. Fundamentally the company is not doing great with poor RoE of 10% thus not even having the PE of 7 where in the market leader Titan with RoE of 55% is enjoying the premium valuation of 35 PE. The current business model of the company is highly dependent on diamond sales but despite of full page advertisement it is not able to generate the expected level of business.
Only hope for the stock is some premium valuations for the stake sale post restructuring and continuous support of buying from the promoters.
Previous update: Click here
As expected the stock is not able to sustain above the trend line and now the sharp down move can take the stock to 313.5 and 300.1. Fundamentally the company is not doing great with poor RoE of 10% thus not even having the PE of 7 where in the market leader Titan with RoE of 55% is enjoying the premium valuation of 35 PE. The current business model of the company is highly dependent on diamond sales but despite of full page advertisement it is not able to generate the expected level of business.
Only hope for the stock is some premium valuations for the stake sale post restructuring and continuous support of buying from the promoters.
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