Gitanjali Gems has soared almost 10% at Rs 524, also its record high on the BSE, on the back of heavy volumes. The stock opened at Rs 480 and has seen a combined 1.05 million shares changing hands on the counter so far, against an average 960,000 shares that were traded daily in past ten trading sessions.
The stock of the world's largest branded jewellery manufacturer-retailer has outperformed the market by gaining 31% in past one month compared to 4.4% rise in benchmark index Sensex after announcing September quarter results (Q2FY13).
The company had reported 15% year-on-year (y-o-y) growth in its net profit at Rs 152 crore in September quarter driven by stable gold prices, expects better sales in current quarter due to festival and marriage seasons.
The research firm, CRISIL Research, positive about the prospects of branded jewellery retailing in India and Gitanjali’s track record of successful retail expansion and the working capital-intensive diamond processing business.
