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Gitanjali Gems gains on being close to snap acquisition deal in China

28 Feb 2012 Evaluate

Gitanjali Gems is currently trading at Rs. 401.00, up by 3.60 points or 0.91% from its previous closing of Rs. 397.40 on the BSE.

The scrip opened at Rs. 398.00 and has touched a high and low of Rs. 410.90 and Rs. 398.00 respectively. So far 757451 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 420.95 on 24-Feb-2012 and a 52 week low of Rs. 201.30 on 15-Mar-2011.

Last one week high and low of the scrip stood at Rs. 420.95 and Rs. 380.00 respectively. The current market cap of the company is Rs. 3649.44 crore.

The promoters holding in the company stood at 54.36% while Institutions and Non-Institutions held 24.28% and 21.36% respectively.

Gitanjali Gems, the country’s largest jewellery retailer, reportedly close to acquiring jewellery retail company in China and hopes to announce the deal in the next 2-3 months. The company plans to expand in China, India and the US in the coming fiscal that begins April 1, 2012. The United States accounts for 35% of the total diamond jewellery market, while China, Japan, India and the West Asia each account for 10% of global demand.

Gitanjali retails diamond jewellery under the brands Gili, Nakshatra, Asmi and D'Damas in India. It also manufactures and wholesales gold and diamond jewellery, and has signed a sourcing pact worth $10 million with a consortium of diamond miners.

Earlier in December 2011, it acquired Hong Kong based jewellery manufacturing company Crown Aim, but has so far not disclosed the financial details of the deal.

Peers
Company Name CMP
Titan Co 4385.95
Kalyan Jewell.India 412.55
Rajesh Exports 120.00
Senco Gold 313.20
Thangamayil Jeweller 3965.15
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