May 22, 2005

Analysing Goldiam industries

Heard of this company some time back. I have started looking at it. This company is into Diamond and gold jewelry exports. It's main market is US . It is into designing jewelry, managing the logisitics etc . Some positives

- Good ROE
- Very low fixed assets
- moderate WCAP requirement. Mainly in the Raw material inventory
- 10 % plus Net margins
- No debt
- 40 Rs / share of cash on the balance sheet

Some points which i need to figure
- what is the nature of the 'investments' in the balance sheet.
- what are the long term plans of the company
- nature of competition ?
- How good is the management. The company seems to have good Fresh cash flow. Other than some captial required for WCAP , the FA requirements are very low. So most of the Net profit is free cash for the company. Need to figure out what the company would be doing with the cash.

The biggest pain however is that the company's website does not have their annual report or detail financial results. That is could be real dampener !!

2 comments:

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rajourigardener said...

Hi (? - i wasnt able to find your name/intro on the blog?),
I faintly remember this cheap stock coming up on our radar last year.
We discussed Goldiam with our internal group of VI - the most interesting point that arised out of the discussion was - "The value of the entire company resides in handful of diamonds - which one can stack in the pocket of one's trousers, and can vanish!"

Overall I found your blog very interesting and one of the kinds on Indian markets.


Regds