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Gitanjali Gems Ltd.: Experts' corner
532715 GITANJALI Group (A) BSE data
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Management speaks
Abhishek Gupta
Abhishek Gupta
Manager, Corporate Strategy
Gitanjali Gems Ltd.
November 23, 2009, 6:49 pm
Why should an investor buy your company's stock?

Consistent attempt in building bookvalue, aggressive growth strategies for the future and long term returns on investment are the key drivers for any investors invest in our stocks.

Also currently the company’s market value is attractive compared to its PE ratio and EPS. This can be leveraged as a long term investment opportunity.

What events do you expect in your industry sector over the next few months? Are these hurdles or catalysts?

Gems and Jewellery Industry in India particularly is back on the high growth phase, the series of events could be impacting on the value chain at upstream moving to the retail levels. There could be ease of inventory flow and cash flow due to better season in Diwali. Moreover pick up in global demand will boost exports regain lost jobs of thousands of employees in this sector.

At a global level, US is still the largest consumption of Gems and Jewellery in the world followed by Japan and India. In US the highly competitive retailers will survive who have better or their own sourcing arrangement. The trend of sourcing from Low Cost Countries is going to continue.

What growth initiatives has your company planned?

Gitanjali Gems has strategically expanded in retail footprint to take advantage of affordable real-estate and available anchor space in most of the leading modern retail formats. There are two acquisitions

Besides the company has also introduced additional brands and catagories to offer a compherensive portfolio of Gems and Jewellery in the country. To leverage the presence in Luxury space and offer complementary products to its existing and new customers, the company has focused on its Lifestyle business comprising of watches, accessories and fashion jewellery. 

Who is your competition? What differentiates you from them?

Having all the leading diamond jewellery brands on PAN India basis, Gitanjali is positioned to be non-competitive with any major player for branded diamond jewellery is concerned. However there are regional family run jewellery stores which share the market with the Group.

In Gold Jewellery categories there are dominant competitors like Tanishq and TBZ, however Gitanjali is more focused on diamond jewellery categories.

How do you see your company performing over the next financial year?

With organic and inorganic expansion, there will be strong growth for Gitanjali in the next fiscal year. Shift of focus on retail sales as well as push for profitability, cost cutting and efficiency drive is bound to show significant increase in top and bottom line.