The shares of this smallcap company jumped around 5 percent in Thursday’s trading session after receiving an export order worth Rs. 50 crores for lab-grown diamonds. In one year, the stock has delivered more than a 50 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 2,069 crores, the shares of Goldiam International (BO:GOLI) Ltd started Thursday’s trading session on a flatter note at Rs. 187.50 compared to its previous close of Rs. 186.10. During the trading session, the shares hit a high of Rs. 196, gaining around 5 percent and are currently trading at Rs. 193 apiece.
Is Goldiam International a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had received the single largest purchase order for the export of lab-grown diamond studded gold jewellery for Rs.50 crores from a large retailer in the USA.
With this order, the company has aggregate booked orders for manufacturing and export of diamond studded gold jewellery for Rs.180 crores.
Financials:
Looking at the company’s financial performance, the revenue decreased by around 27 percent from Rs. 202 crores during the December quarter to Rs. 148 crores in the March quarter. On the other hand, the net profits declined by 44 percent from Rs. 32 crores to Rs. 18 crores during the same timeframe.
Order Book:
As of March 31, 2024, the company‘s order book size stood at Rs. 1,200 million. This order book is expected to be executed in the next four to six months.
Goldiam serves a global clientele, including major retailers and wholesalers in the American and European markets, and has a strong focus on customization and ethical practices in its operations.
Moreover, Goldiam International is focusing on expanding its online sales, which have shown growth from 25 percent in Q4 FY23 to 26 percent in Q4 FY24. This trend indicates a positive shift towards digital platforms, which could enhance revenue streams in the future.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 14.41 percent and a return on capital employed (RoCE) of 19.02 percent for the period spanning FY23-24. Further, the net profit margin stood at 15.07 percent during the same period.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters maintain ownership of 64.26 percent, while Foreign Institutional Investors possess 0.16 percent of the stake. The remaining 35.59 percent of shares are held by Retail Investors.
Company Profile:
Headquartered in Mumbai, Goldiam International Ltd was incorporated in 1986. The company is engaged in the business of manufacturing and exporting gold and diamond jewellery to global retailers.
Written By Vaibhav Patil
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