Buy Gitanjali Gems; target of Rs 145: Way2Wealth

CMP: Rs.90.85

Way2Wealth is bullish on Gitanjali Gems and has recommended buy rating on the stock with a target of Rs.145 in its June 10, 2014 research report. Moreover, in May, 2014, Gitanjali Gems Ltd invested USD 15.5 million in overseas operations. 

Also, MV SCIF Mauritius, part of US-based asset management company Van Eck Associates Corporation, on 20th June, 2014 picked up 4.97 lakh shares of Gitanjali Gems Ltd, through open market route. Van Eck Global offers investment choices in a broad range of asset classes, including commodities and natural resource equities, emerging market equities and debt. 

Besides, though monsoon season is considered lean period for gold demand due to lack of festivals and weddings, Gitanjali Gems Ltd, Rajesh Exports Ltd and Kalyan Jewellers Ltd are promising everything from discounts to an opportunity to dine with Bollywood celebrities, to ramp up sales.

"Gitanjali Gems Ltd, will announce a rain and shine plan next month, offering discounts on ornaments and jewelry making charges. Sales are flattish at the moment because stocks are less and people are waiting for new policies to be unveiled by the new government. We expect demand to pick up because of these offers and the restrictions being eased as well", the Chairman Mehul Choksi said in an interview with Swansy Afonso of DNA India.

"With the kind of promotions and expectation of a change in import tax, we should see some normalcy in demand," C P Krishnan, a director at Geojit Comtrade Ltd, said. 

According to a report published in online portal, Eco-Business, the world’s fastest growing diamond and jewellery company is India's Gitanjali Gems Ltd. They have made employment of disabled a central part of their talent development and human resource strategies.

This initiative started because of a shortage of labour in Hyderabad that made it necessary for the company to hire local disabled people. Result: lower staff turnover, greater employee loyalty, an increase in productivity and more.

In short, what started out as an HR crisis became a competitive advantage. The disabled turned out to be undiscovered resources, and hiring disabled youth is no longer “just a CSR initiative” but an integral part of Gitanjali Gem’s talent management strategy.