Shares of jewellery company Goldiam International and garments & apparels company Pearl Global Industries (PGIL) have hit their respective new highs, as the scrips gained up to 9 per cent on the BSE in Thursday’s intra-day trade. In two months, the market price of these two smallcap stocks have zoomed up to 82 per cent.
Individually, Goldiam hit a new high of Rs 569.50, as it rallied 9 per cent in intra-day trade. Thus far in the month of January 2025, the stock price of diamond jewellery exporter has appreciated 47 per cent. In the past two months, it has zoomed 82 per cent.
The company functions as the manufacturer for many of the leading global branded retailers, departmental stores and wholesalers across American and European markets. Targeting the mid‐to‐affordable diamond & bridal jewellery segments, Goldiam has a dedicated sales office in New York, with design teams in both India and the USA. The company recently started its first retail store in India and plans to add many more stores in coming years.
Goldiam is geared to expand ORIGEM’s footprint with an aggressive retail launch strategy across key locations, positioning Goldiam to capture a larger share of the lab‐grown diamond jewellery market.
Meanwhile, Goldiam reported a robust 34 per cent growth in standalone revenue, and a 74 per cent increase in standalone profit after tax. Consolidated revenue for Q2, however, saw only a marginal increase, primarily due to shipment delays caused by flight alterations / cancellations to the US, impacting consolidated sales. Excluding the shipment delays, the company would have posted a significant 38 per cent revenue growth for Q2.
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With the onset of the festive season in the US, looking ahead, the management is confident that the upcoming quarter will be Goldiam's best to date, underscoring its belief in the sustained demand for lab‐grown diamonds among our US retail partners. Concerns regarding declines in lab‐grown diamond prices appear to be largely overstated, the management said.
On the other hand, shares of PGIL also hit a new high of Rs 1,718.05, gaining 6 per cent in intraday trade, and surging 14 per cent in three days. The share price of the company has zoomed 71 per cent in two months on strong earnings in the first half (April to September) of the financial year 2024-25 (H1FY25).
PGIL manufactures readymade garments, across categories (knits/woven/denim/non-denim/outerwear) and segments (men’s wear, women’s wear as well as children’s wear). PGIL is an approved vendor of renowned international brands and retailers like GAP, Kohl’s, Macy’s, Tommy Hilfiger, Ralph Lauren among others.
In H1FY25, the consolidated revenues grew about 22 per cent on a year-on-year (YoY) basis to Rs 2,277 crore on the back of an increase in sales volumes. While the operating margins remained flat at 9.5 per cent in H1FY25, an increase in the scale of operations supported a 23 per cent rise in the operating profits in value terms, on a YoY basis.
ICRA expects the company to sustain a healthy revenue growth with the likely shift in procurement by large customers from China to markets like India, led by its operational strengths, which provide it with a competitive edge, including long-term relationships with renowned international retailers, which have been facilitating repeat business.
PGIL’s geographically diversified manufacturing base across leading apparel exporting regions of India, Bangladesh, Vietnam, Indonesia and Guatemala keep it more favourably placed than its peers to benefit from the said potential shift, however, this also exposes its operations to geopolitical risks, the rating agency said in rationale.
PGIL has plans to increase its manufacturing capacity with a proposed capacity expansion of Rs 400-500 crore over FY2025-FY2027, to be funded through a mix of internal accrual and debt. Going forward, the company is expected to continue to report a gradual improvement in its financial risk profile on the back of healthy revenue growth, driven by its plans to widen its product portfolio, client portfolio and geographical diversification over the medium-to-long-term, ICRA said.