Tuesday, February 23, 2010

GITANJALI GEMS: CLEAR VALUE BUY


Dear SirI want to invests in the shares of Gitanjali Gems for longterm ( 5years) ,kindly tell me it a good buy and at what price should i buy ?ask by shri Vivek Bajaj
1. gitanjali gems is a 10 rupees face value share and I like 10 rupees face value share instead of 1 and 2 rupees face value share because they have a chance to stock spilt rally in future.
2. EPS of gitanjali gems is near about 15 and share traded at P/E near 7-8 so this share is available at a reasonable price.
3. promoters holding 51.47 percent FII holding 19.24 percent is not bad .
4. gitanjali gems give dividends in last 4 years.
5. so fundamentally gitanjali gems is a good share and what is good price for buy? I think current price is under book value ( book value of gitanjali gems is 224.38) so current price is a value buying but I always buy in SIP method means you can fix a date and buy partial quantity in this date for atleast 1 year .
6. my view is positive on this share.
key:- gitanjali gitanjli gem gems buy sell book hold

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