Gitanjali Gems Long Term Buy Call
Technical analyst Rajesh Agarwal of Eastern Financiers Ltd has maintained 'buy' rating on Gitanjali Gems Limited with a long-term target that lies between Rs 325-350.
Today, the stock of the company opened at Rs 271.70 on the Bombay Stock Exchange (BSE).
The share price has seen a 52-week high of Rs 395 and a low of Rs 95.10 on BSE.
Current EPS & P/E ratio stood at 20.80 and 12.31 respectively.
Country-based diversified jewellery manufacturer, Gitanjali Group is said to be making discussions with 3 private equity companies to divest equity stakes from the group.
The international private equity companies including Bain Capital, Advent International and Apax Partners are in the battle to purchase equity stakes in Gitanjali Group' arm, possessing jewellery brands, Nakshtra, Gilli and Asmi.
The Mumbai-based Gitanjali Group is also chewing over lifting up around $100 million from stake sales to slash arrears.
For the three month period ended September 2010, Gitanjali Gems recorded an increase of 54.62% in its consolidated net profit, which stood at Rs 80.4 crore.
Consolidated income remained up by 42.74% at Rs 2,509 crore as against Rs 1,757.7 crore (YoY).