Another Wealth Creator for 2017:

_Goldiam International Ltd_

100% EOU. No domestic sales. Hence, zero impact of Notebandi. *Big profit margin expansion due to weak Re*

Exports diamond jewellery directly to Retailers

Avlbl at 0.70x Book

Tdg @ 5.90xFY16 EPS

Avlbl @ 4.58xFY17Eeps

*Investments ( at cost, mkt value much higher) RS 108.40 cr works out to Rs 43/ share. Hence, biz avlbl just for Rs 44*

Mumbai based Goldiam belonging to Bhansali family, is engaged in production and exports of designer diamond jewellery. Co is exporting directly to big retailers in USA. Goldiam has been improving its financials ( DEBTFREE, takes short term borrowings only for working capital against security of its investments) and is definitely underpriced

           H1FY17. H1FY16

Sales     152.    160

PAT        17.14. 160

Equity.    24.94

EPSRs    6.84.   4.17

BValueRs.          112

For FY16, Goldiam had reported NP of 33 cr on sales of 330cr, translating into EPS of 13.03.

*For H1 it's Pat has leapt by 60% with H1 EPS of 6.84*

_Goldiam can easily report Eps of 16 for FY17 as (a) H2 is always better due to Christmas/NY demand (b) to benefit from strong dollar_

It may be noted that co don't hedge it's dollars( of export revenue), hence full benefits of weak rupee will lead to margin expansion
But hedges dollar for gold imports
Co also benefits from rising gold prices( inventory gain). Family one of the oldest in this business, hence understand gold biz ( volatility) extremely well

*Investments in current, non-existent current asset class AT COST 108.40 cr which means RS 43/ share*

Goldiam trading at 0.70x,Book, PERatio 4.58, debt free, consistently profit making is grossly underpriced.

_Even if Goldiam gets modest PERatio of 12, stock price can be 170-200 in 12-15 months_

Definitely worthy of investment. Stock still below its recent high of 94 makes it safe buy at cmp