Idea Cellular Ltd recommended few days back at Rs.117, today touched Rs.124-plus on intra-day. The scrip closed at Rs.123.75, giving handsome gains to the investors.
Gitanjali Gems Ltd today touched Rs.37.60, before closing at Rs.36.85. Meanwhile, the government has given assurance that Ashok Lahiri Committee will consider the demands of jewelry manufacturers. On March 19 there was a extensive meeting by a number of trade bodies which was represented from the government side by Piyush Gupta, and subsequently Amit Shah also came into the meeting and it was agreed that certain draconian laws in the excise will not be levied on the gems and jewellery sector such as excise officers coming into the premises of the jeweller or the manufacturer and as the perception about these excises officers is, they tend to pickup random samples for themselves.
The jewellers had gone on a strike since March 2 after Finance Minister Arun Jaitley in his Budget announced a 1% percent excise tax on non-silver jewellery.
The introduction of stricter PAN card requirements for purchase of jewellery is unlikely to impact Gitanjali Gems in a major way, says Sanjeev Agarwal, CEO of Gitanjali Export Corp. "Unlike many other listed companies, Gitanjali Group is fully diversified across geographies, product categories and lines," he said.
"While jewellery accounts for 70 percent of our turnover, diamonds account for the remaining 30 percent, which is not impacted," he said.
"Within jewellery, 60 percent of sales are from the international market. For the domestic market also, a majority of our sales are through department stores or ecommerce companies," he added. "So the impact will be very less."
He added Gitanjali brands such as Gili, Nakshatra and Asmi are in the daily consumption and fashion space rather than wedding wear.
"Hence, the price point of sales is much lower than the typical jeweller. Hence, the PAN card norm will also not affect us much."
The scrip of Gitanjali Gems Ltd, will slowly move towards Rs.55-61-67-72, in the days to come; as according to the experts, the fundamental demand for jewellery is still intact.