Shrenuj & Co Ltd

CMP: Rs.2.17 (BSE)

Photo: India Today

Shrenuj & Company Ltd manufactures and markets high quality polished diamonds and diamond jewellery products. The company in June, 2016 said that as a part of strategy, it has undertaken an exercise to rationalise its manpower across all levels. As a result, some of employees have started tendering their resignations, it said. Shrenuj said it is putting its every effort to retain the best talent in the organisation. Alternative strategies are being considered to overcome the current challenges, the company said.

Shrenuj & Company reported net loss of Rs.38.32 crore in Q4 March 2016, compared with net profit of Rs.2.50 crore in Q4 March 2015. Net sales declined 62.9% to Rs.304.16 crore in Q4 March 2016 over Q4 March 2015. 

Some key statistics: 

(i) The Book Value of the shares of the company is Rs.47.38

(ii) The dividend yield per share at the CMP of Rs.2.17 is 9.22%.

(iii) Face value per share is Rs 2. 

(iv) 52-week Change or by how much the scrip fell: -96.32% (considering the 52-week low in NSE, of Rs.2.10)

(v) 50-Day Moving Average: Rs.3.15

(vi) 200-Day Moving Average: Rs.6.41

(vii) Float: 79.41 million

(ix) The Enterprise Value of Shrenuj & Co as of 20-Aug-2016 is Rs.34.79 billion (Rs.3479 Cr). This is against a market cap of only Rs.41.86 Cr.

(x) The small-cap company has equity capital of Rs 38.58 crore. 

There is some good news for the cash-strapped diamond industry in Surat and Mumbai. The midstream diamond and jewellery manufacturers are set to gain access to more than a billion dollars in loans from a New York-based lender.

The Excelsior Capital Ventures, founded by an Indian will start engaging with borrowers to pump in at least $1.5 billion by 2019. 

The target for the shares of Shrenuj & Co Ltd (BSE: Rs.2.17; NSE: Rs.2.25) in the medium term is Rs.15-17. However, if the diamond market improves or NDA government takes more pro-active measures, prices of Rs.22-27 cannot be ruled out.