CARE Equity Research assigns Fundamental Grade of 3 to the shares of Gitanjali Gems

CARE Equity Research has assigned a Fundamental Grade of 3 [Three] and a Valuation Grade of 5/5 to the equity shares of Gitanjali Gems Ltd., indicating 'Good Fundamentals' and 'Considerable Upside Potential' respectively.

Key Takeaways from the Reportv
- CARE Equity Research values GGL at Rs. 532 per share.

- The valuation is arrived at by using the Sum of the Parts (SOTP) valuation methodology. GGL is present across the gems and jewellery value chain.

- We have divided GGL's business into three key segments i.e. 1) diamond processing, 2) domestic jewellery and 3) international jewellery.

- Since the dynamics of these segments are not exactly similar, we have valued these business segments individually by using the EV/EBITDA multiples methodology. At the Current Market Price (CMP) of Rs. 423 per share; we assign a valuation grade of 5/5 to GGL, indicating the shares of GGL have 'Considerable Upside Potential'

Source : Equity Bulls

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