ValuePickr Forum

Goldiam International : A rare shareholder friendly and debt free Jewelry company

Quick Snapshot

CMP: 100.85 as of 27th June ( vs Average Buyback price of 154 on 26/2/2020)

Market Cap: 223Cr

P/E : 4.77

Div Yield: 6.45%

ROE: 11.58%

52W H-L: 184.8/72.2

Website:

India: http://www.goldiam.com/

International: https://www.goldiamint.com/

History

-1986: Started export of cut and polished diamond and studded gold jewelry

-1994: Company was converted into a Public limited company

-2007: Company entered into JV with Russian major retailers with its subsidiary Diagold

-2008: Company retail brand in silver jewelry segment “OLA” entered into a tie-up with leading groups like Total mall, Bengaluru, DLF Group for Kiosks, Aditya Birla more, etc

-2015: Reported Net profit > 20Cr for the first time and has been able to maintain that ever since.

-2019: Company introduced its first line of Lab-grown diamond jewelry in the US market. They were among the first exporting company to driven in this segment.

Lab-grown jewelry is almost 50% cheaper than the same quality mined diamond and has a better operating profit margin.

Segment

The company mainly operates on two-segment

(1) Jewel Manufacturing which contributes 95% roughly of company revenue and
(2) Investment activity

The Company is manufacturing high quality, luxurious and creative diamond jewelry and exporting to USA, Europe, and other countries. The Government of India and several other trade bodies have awarded the Company for its contribution to jewelry trade and being a pioneer and a role model in this industry.

Following are the achievements:-

• Outstanding Export Performance for studded Jewelry from EPZ for the years 1992; 1993; 1994;1996;1997;1998 and 1999 by Gem & Jewellery Export Promotion Council.

• Late Mr.Manhar R. Bhansali, Chairman of The company was awarded “PIONEER OF THE YEAR” award by IDCA (Indian Diamond & Colorstone Association) on June 5, 2010.

Below are some of the Jewelry company specialize in:

The company operates via below subsidiary mainly

In terms of a subsidiary, we can see that its subsidiary has a strong performance, particularly it’s USA business whereby it’s generating almost 9Cr out of its 43cr total revenue thereby supporting its diversified model quite well.

Its Indian business generates the majority of its revenue via Export and the USA continues to be a prime export market. This was the major reason for this stock being picked up as given the global pandemic, I do believe sectors like jewelry will take time to recover and companies which are the majority in the export market like the USA will be able to recover first.

Promoter Holding

  • Promoter holdings have increased by 2.2% in the last one quarter and promoter holding is quite good at 65.09% as of March-20 at average buyback price of ¬155.

  • Promoters have taken a very good shareholder-friendly approach of paying good dividends and doing continuous buyback giving faith to people on its model.

- In last 3yrs, it has increased its shareholding by >8% through consistent buyback in the markets.

- Star Investor Ramesh Damani has a holding of ¬1.3% on this company at an average price of 85.

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Buyback history

The company has adopted an extremely consistent shareholder-friendly approach to buyback the shares throughout the last few yrs.

As we can see the the average buyback price of the company has been in the range of 90-155 which gives strong support to the current market price esp a decent buyback in Feb around 155 levels.

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Financials

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  • Company profit was under pressure from COVID this year and rise in Gold prices in the Q4 where it resulted a poor result. In spite of that YoY profit is the highest ever

  • Raw material cost breakdown as we can see from the company annual report of 2019 is mainly driven by Gold which accounts for roughly 64% of the cost while Diamonds accounts for roughly 32%

We can clearly see the impact of high gold prices due to pandemic on the cost of the company. I expect the company to report similar Profit in Q1 of the year as compared to Q4 recently due to COVID situation and gold price still being high however as compared to other companies this company is well placed to capitalize on the growth.

The company has also paid a good dividend of 23.22 in the last 9yrs. It’s currently trading at a Dividend yield of 6.5%. These dividend payments are expected to continue given the growth of the company and consistent positive cash flow.

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It must be noted that company is Debt-free and it has managed to do so by repaying its loan every year from internal accrual. This is so important in times like this whereby fixed cost has killed so many sectors and business models.

As highlighted below, you can see the company has managed to use its strong internal accrual to

(1) repay debt and get debt free

(2) do buyback in both the years to increase shareholding

(3) Pay generous dividends to shareholders

Future growth drivers :

  1. Increasing range of products like Lab diamonds which makes it one of the first export-oriented company to enter this segment. Given strong margin and cheaper than mined diamond, it will be interesting to see how the company further grow in this space

  2. The development of a new export is key. The company has heavily relied on USA model for its growth. It’s now making progress in domestic India retail market and also the European market

Valuation as per different methods:

Looking at the valuation right now, we do have a chance of more than 50 to 100% upside. These evaluations are made under certain assumptions which are given below

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  1. EPS based valuation:

Goldiam International has been historically been trading at a P/E of 6 as an average over the last 2-3 yrs. Lowest P/E has been 2.9 vs 4.8 its currently trading at and highest has been around 15.

We have a fairly good upside of ~25% on this stock-based upon EPS remaining the same over the next few yrs ( which is quite a conservative assumption) and P/E reverting back to somewhat normal of 6 times instead of 4.8 times currently more inline with the past historical average. This also takes into account the COVID impact of the last quarter which is the same as COVID impact in Q1 this year.

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  1. Peer-Based Valuation

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Again we have got a 130% upside against Peer-Based valuation under a conservative 60% discounting to average P/E of the Peers. This I have done as I have highlighted risk earlier of COVID impacting consumption

  1. Graham

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Looking at the Graham, we will come up with a much higher valuation of INR 271. However, the Graham formula has certain flaws like P.E of 15 and P.B of 1.5 is assumed

this is obviously going to show the stock as massively undervalued. However, the core concept of Graham is still relevant, blind usage of the formula without understanding will not yield a correct result like below its yielding 271

In the below, I have modified the Graham formula to take a P/E of 6 which given the historical range of 2.6-15 and Median of ~6 P/E looks to be a much more reasonable and conservative P/E and P/B is assumed to be 1 given a growing company should always trade at least equal to its book value.

Given the modified Graham formula, I get a price of 140 which already takes into account next quarter Q1 company will just report 3.2cr P&L. It still shows an upside of 40% in relation to the current stock price.

  1. Intrinsic value

Intrinsic value also is very good given a very conservative assumption of 2% growth in Cashflow and 12% discount.
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Below is the historical growth rates in Sales and Profit of Goldiam. Given the impact on this year due to COVID it hasn’t been able to register growth we witnessed in FY 2019

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  1. Book value approach

Looking at the book value, this stock is trading much lower than its book value as compared to its peers. In this sector, a normal trend is to see P/B of ¬4-10 times. Due to the recent fall in price, its P/B has plunged to 0.55 times which is very cheap.

Risk:

  1. High Input prices like Gold always make things challenging for the company given its size to pass the effect of that to its customer. This was clearly visible in the Q4 result where it actually reported a loss for the first time in the last few yrs in a quarter. Times are unprecedented and will be interesting on how soon the company can come out of COVID. However given its large focus to export market i.e. the USA where it derive its revenue, it is well placed in my view to recovering quickly as compared to local players

  2. Currency risk arises from exposure to foreign currencies and the volatility associated with therewith. While the Company hedges majority of its receivables, any sharp fluctuation in currency is likely to affect the cash flow of the Company as well as its profitability

  3. Since the company mainly operates in the USA market, it faces challenges of a slowdown in the economy and risk of government policy changes.

Overall its a company with good historical growth, strong brand, and presence in the USA market with which it has benefited massively. With its past growth and recent crash in price from 180 levels to just 100 currently, it has now gone to become one of the lowest P/E in the Jewel Industry. Also, it must be noted that being a Debt-free and Cash rich company is very important during these COVID times and this company is a rare company with perfect parameters. Company new initiative of Lab Diamond is exciting and need to be seen how consumer takes it. Lastly, it’s rare to find a company that is consistent and shareholder-friendly esp in the micro-cap sector. With its consistent buyback and good dividend along with now it being debt-free, it’s expected to continue.

I have invested in this at the current market price of 100 for long term purposes given the above.

Disclosure:

  1. I have an investment in this stock so my views might be biased. I request you to take your own judgment call before you make any investment in this name.

  2. I am not a SEBI registered analyst so don’t have any recommendation service/Paid service. It’s an educational website that is just meant to share the analysis I do before I invest.

14 Likes

Did a bit check on screener.
This co has currently assest of around 150rs per share and the value is near 100.
That is an attractive part
Will dig deeper.

Disc- I am not invested.

Hi @smallcapvaluefind, thanks for doing such wonderful analysis.

I think this looks like a great company and definitely worth digging deeper into as a community to build more and more conviction about the company. A few things I observed through an hour of digging:

  1. I generally prefer small companies at a low dividend yield. A high dividend yield could potentially be indicative of company’s inability to reinvest profits successfully back into the business. In this case though, the high dividend yield is more due to the very low P/E multiple. The correct metric to check here is the dividend payout ratio. For this company this is around 16%, which is acceptable imo (i would still prefer seeing a small company hold extra cash on its balance sheet as a hedge against future unknown unknowns, but accept capital allocation as a subjective decision with multiple shareholder-friendly steps possible).
  2. the ROCE for the company has jumped in the last year:

    See the Mar’19 number and contrast it with older numbers. Do we know why? Do we know if this increase is sustainable or only a one-off increase? This needs more digging into. In the same picture, also observe that the debtor days has come down in 2019. Do we know why? Do we know if this is sustainable or only a one-off decrease?
  3. Looking at the cashflow statement:

    I see two interesting developments: The operating cashflow was negative in 2018 largely on account of “Other accounting Items” one-off. Do we know what this was and whether could recur in the future as well? From the same pic, “Investments purchased” has gone down dramatically from roughly -300cr to -90cr in 2019. Do we know whether this reduction is sustainable? Is this linked to capex? It seems like it should be tied to the ROCE going up as well (specially if some new manufacturing capacity came online in 2019). This needs to be dug deeper into.
  4. From the shareholding pattern:

    Looks like promoters have been raising stake for quite some time now. is this a result of direct open market purchase by promoters or more due to them not tendering shares in buyback programs?
  5. Have not gone through the 2019AR in much detail but was looking for top 10 public share-holders and here is what I found:
    the 7. number shareholder is Nimesh Piyush Mehta who as per google search is a Director at a private company CUPID DIAMONDS PRIVATE LIMITED. I could not find any mention of Cupid in Goldiam’s 2019AR. It is worth digging into whether there might be any other possible connections between the two companies and for example do they share any of the promoters, specially because Cupid is into diamond manufacturing as well.
    The 1 number public share-holder (8% holding) is Diajewel NV which is a company based out of belgium and “The Company’s line of business includes the wholesale distribution of jewelry, precious stones and metals, costume jewelry, watches, clocks, and silverware.”. I have sent a LinkedIn request to one of their employees to try and understand what their company’s relationship with goldiam is and why their company holds 3.5% stake in goldiam (Diajewel consistently reduced holding from 8% to 3.5% in 2018-19).
    The 3. (Chandrash Ashok Mehta) and 8. (Priyank Ashok Mehta) largest public shareholders are from Shining Star Jewellery India Private Limited
    which is described as "100 % family owned business which operates as diamond studded jewellery manufacturer. ".
    The 6. (Nishith Shah works at Goldiam International. What puzzles me is that Mr Nishith Shah has a gross remuneration of 9 lakhs PA (as per AR page 37 of pdf) but owns 131027 shares of the company. This is roughly 1.3cr rupees. Mr Nishith is 37 years old as per AR. I’m not saying that this is impossible, just a bit strange since the company does not seem to give any stock options to even the Company secretary or CFO. So does this mean Mr Nishith who joined the company 5 years ago has already developed enough conviction to buy such a large stake in the company he works at?
    This is not the case, Going back to FY2015AR (page 19) Mr Nishit Mehta has had 0.56% (roughly same as today) stake in company since 2014 at least (before he joined as an employee). What does this mean? imo (and this is only an opinion and not a fact) this means that he is close to the promoter family in some way and should be classifier as a promoter not a public shareholder.

I think we can see a pattern here. A Lot of companies/people in the diamond business own stakes in goldiam. Are any of these related parties? If not, why do so many of them own stakes in Glodiam?

PS: Mr Nishith Shah (used in 2019 AR) also spells his name as Nishit Shah (used in 2014 AR [the reason im convinced it is the same person is that the holding percent is roughly the same 0.5623% to 0.5653%]

9 Likes

if possible could you please point towards specific artifacts which provide proof for this (AR, any other artifact)? Im most interested in commentary on Gold and the large US orders which they had to fulfil in 3 months.

Sorry but I do not seem to find this drop in gold prices in the publicly available resources I’m looking up. For example, see:


The Gold price was roughly the same in FY18 and FY19. Then it is not clear how gold prices being low contributed to high ROCE.

Also, even if we believe that (i do not right now due to the charts I am reading, please do correct me if im reading the wrong charts), this seems to indicate that the company has little to no pricing power. This is surprising given the segment the company is in. Is the final output (jewellery) more like a commodity? Are they unable to pass on increase in raw material prices to buyers? This would be a serious drawback for the company imo. In the next 1-2 years, global economy is expected to remain fragile and volatile, meaning that gold prices are expected to remain elevated. In such a scenario an investor might not want to be in any kind of a rush to invest in the company (meaning even if one does want to invest, there can potentially be better entry points in the future when the performance is worse due to higher gold prices).

Can you please provide a source for this? Also what does this screenshot depict?

I am personally much more ok with the rest of the large public shareholders, but number 6 worries me since it can potentially be a bad governance practice. Having said that I do agree with you that smaller companies generally do not have as good corporate governance as large ones, but present much larger wealth creation opportunities for the investors.

It can either be positive (if the transactions are at an arm’s length, indicating skin in the game for the shareholders). Or it can be negative if indirectly promoters have a stake in these companies or if the goldiam does business with these companies because how can they be expected to be neutral when the transaction can potentially benefit a shareholder? Btw some of these things might be unknowable since we will have to trust the management’s word on it.

Thank you so much for doing this. I would also suggest participating in any virtual AGM they might hold. Would allow us to see how other shareholders are thinking and dynamically ask the management questions which help us build more conviction in the business.

A couple of other things i wanted your views on since you have already invested so much time in this:

  1. Mr Damani is a multi billionaire. But he only holds 1% stake in the company. To me this reflects his lack of full conviction in the company (admittedly many great investors build conviction incrementally over time and not all at once). How do you view this?
  2. As per the ART of valuation thread I think about companies i have started thinking about companies in terms of Value Addition. This does seem like the correct way to think (backtesting it on how companies have been valued in past). Is goldiam adding value for customers? Are its products differentiated versus their competitors? Who are Goldiam’s competitors and how much of a competitive advantage does Goldiam have? All of these become good questions in trying to think about what kind of valuations could Goldiam have in the future. A company selling jewellery to users should potentially have a high valuation IMO, but the degree of that high valuation is tied to the strength/longevity of the moat the company possesses. For example Tiffany’s in the US has a clear brand value moat and despite selling the same quality jewellery as the guy next door they can sell at a higher price and in fact to some extent, their products’ demands follows an inverse relation with price, the higher the price, the higher the demand! I know that Goldiam is way too small compared to Tiffany’s or even other jewellery manufacturers, but I wanted to see if we could get the management’s views on all of this. Do they seek to differentiate their products? how are they thinking about R&D? Do they have plans to make sure that they can protect margins against raw material price inflation?

All/Any of these questions if answered by the management would go a long way in helping investors build conviction and take even larger positions in the company.

Disc: I do not have any investment in the company but would look to add a small position if it comes back to near March-april lows.

1 Like

Goldiam International manufactures and exports diamonds to other retailers in international markets. It may have Indian clients who bought the stock of supplier.
Being B2B it may not get the premium valuation which Titan possess.

You might be confusing Mr. Ramesh Damani with Mr. Radhakrishan Damani (owner of Avenue Supermarts). Mr. Ramesh Damani has only one stock at present.

https://trendlyne.com/portfolio/superstar-shareholders/62728/latest/ramesh-damani/

I was following him after listening to his speech and interview. He was invested in Goldiam International and Garden rich shipbuilders at that time. After a quarter he exited both. He then reentered Goldiam after a quarter. I think it will be difficult to coattail him.

Disclosure: not invested. These are my personal opinions.

2 Likes

Looks interesting but can anybody throw some light why company is carrying so much cash in the books I.e. more than 270 crores…
If cash is real than it fits in typically Graham style Value investing…nd may give a good upside in good times…
But in such small nd jewellery companies finding these answers in very challenging…
Any more information is welcome…

From screener, this number is 55cr. Can you please give a source for the 270 cr number?

If u add cash+investment+loans and advances
P

Thanks! This is very fascinating, I went through their annual report to understand how they have 200cr worth of investments. A few interesting things I observed:

  1. Note 9 to balance sheet. This is the current investments. They held direct equity in a few companies in 2018 that they sold off between 2018 and 2019 (Note 9 to the balance sheet):

    Some of these are stocks I have directly tracked and owned at various points. They clearly have a “Value Investing” bend in owning equity which is encouraging to me personally. Although this might seem negative to a few folks since this is not the primary business of the company. Also strengthens the “cannot reinvest back into business” argument.
  2. Note 4. Non current investments. A lot of the investments are in venture capital funds and have blown up in value between 2018 and 2019:
    They have some 98 crores under “Investment in Venture capital funds” which has increased in value from being 33cr in 2018. 3x in 1 year. A few questions regarding this:
  3. Why is the management investing in such risky instruments like Venture capital funds? Is this a gold manufacturing company really? Can someone confirm that goldiam factories exist and ship gold to other countries?
  4. This is more for my own education. What is “Aggregate amount of unquoted investments”? This is worth 42cr in 2019 and was only 10cr in 2018. And there are no more details available in Note 4 about this.

All in all, either the management are investment geniuses, or (and i do not put this lightly), is this a shell corporation ?

Can someone please confirm if they have actually seen goldiam products or factories or talked to some employees who they know personally? I think this should be our next steps in trying to ascertain what kind of a company this is. @smallcapvaluefind in case you might know answers to some of these questions.

4 Likes

Hi all

Thanks for so much of wonderful questions and appreciating this find. Given it’s a extremely small company I had to personally spend a lot of time to dig informations

I find few of the questions very interesting and genuine and have send that to the investor email id asking for a call with management if they give me time . I have made a note of all the questions which has been raised .

I have decided to leave this forum for personal reasons however as my last reply to this forum , I will update my conversation with management as soon as I hear back on the above questions. Most likely will update by next week

Thanks again and way all of you think has certainly made me learn more :slight_smile:

Regards

5 Likes

Hi All

I have filed a complain with SEBI Scores as i havent heard back on management on my email ( even a simple acknowledgement ). Have any of you tried SEBI scores route before? i am trying to force management to answer but thought i should let you know as some of the question esp in regard to related party not being disclosed properly and investment they making as short of red flag

i will keep pushing management

Thanks

1 Like

I don’t think SCORES can be used to force management to reply to shareholder queries. Management is right in their own way. If bandwidth is used on answering every shareholder, then they would not be having time to run the business. I think that’s why we have AGMs where management can be asked questions.

I found a couple of relevant valuepickr threads which can be used to learn about and file sebi complaint.



And yes I do think retail investors can file complaint on sebi scores.

Ps: don’t have any personal experience with this.

https://www.goldiamint.com/about… GOLDIAM is a subsidiary of “Eli Zikri Diamonds Ltd.”, considered for over 50 years as one of the most important companies in Israel

so that is incorrect information .

How ever the company has done some new initiatives since 2019 and they have
hired industry sales and merchandising veteran Scott Sedlacek to be its new vice president, sales and business development… seems to be good initiative.

At the recently concluded JCK Las Vegas Jewelry Exhibition, Goldiam International Ltd has introduced its first line of lab-grown diamond jewelry to current and potential new customers. We are among the first jewelry exporting companies to dive into manufacturing & distribution of the new age lab-grown diamond jewelry.

Lab-grown diamonds are a new and highly disruptive product in the global diamond business. They are rapidly gaining appeal among US customers for the value they provide, being at least 50% cheaper than same quality mined diamonds. As the category is currently niche, but rapidly growing, there is potential to create a line of business that enjoys a higher margin than traditional mined-diamond jewelry manufacturing.


Promoter recently aquired 60k shares from open market on 30th June 2020
https://www.bseindia.com/stock-share-price/goldiam-international-ltd/goldiam/526729/disclosures-insider-trading-2015/
1 Like

I appreciate your views

I don’t want to be over bullish on this stock to be honest . Lab grown diamond is exciting development but questions asked by fellow members above cannot be ignored like which stores are they really sold ( I tried a lot but couldnot find ), recently they won order for 40cr but question is who ordered ? Why is company not giving details of that ? Also I know promoter has bought but it’s no secret that people have been caught due to promoter doing so in past in various companies ( Nandan denim is a classic example , dig and you will see that I mean. There was a time where promoter used to buy this at every level from 140 to 180 and Attracted lot of people)

I do have investment in this stock but it’s imp to get answer to few questions above which has been raised

Just to give another stock example , Renaissance jewellery I was researching on . It’s almost similar in every respect to goldiam like a small company , low pe , good profit etc however promoter are not as shareholder friendly as goldiam in terms of buyback and dividends etc

However renaissance stores can be found online in Mumbai and it has a reputed brand of Disney which you can see in China and US stores also in amazon . So we can’t say that small company always have problem of product not being visible online like I am seeing with Goldiam. If it’s present in major US retailer then why can’t I find on their site ? . I don’t see this issue in Renaissance so lately I am asking myself why Goldiam and not Renaissance? Anyone can answer that ?

There is no harm is being bullish on something as that’s the reason we buy but we can’t ignore red flags too

2 Likes

Hi

I am a shareholder of this question… I have 6 questions which I want to ask on this. Can i please get a reply on the below

Question 1 : The ROCE for the company has jumped in the last year:

Screenshot 2020-06-28 at 8.27.18 AM

Screenshot 2020-06-28 at 8.27.18 AM2996Ă—290 32.1 KB

See the Mar’19 number and contrast it with older numbers. Do we know why? Do we know if this increase is sustainable or only a one-off increase? In the same picture, also observe that the debtor days have come down in 2019. Do we know why? Do we know if this is sustainable or only a one-off decrease?

Question 2: Looking at the cash flow statement

I see two interesting developments: The operating cash flow was negative in 2018 largely on account of Increase in current assets and it seems it was due to Inter Corporate Loan. Can you please confirm and to whom it was? What was the interest rate and tenor along with the objective?

Question 3:

On the increase in shareholder , looks like promoters have been raising stake for quite some time now. is this a result of direct open market purchase by promoters or more due to them not tendering shares in buyback programs

Question 4 : On shareholding

  • Nimesh Piyush Mehta who as per google search is a Director at a private company CUPID DIAMONDS PRIVATE LIMITED

Th Diajewel NV which is a company based out of Belgium and “The Company’s line of business includes the wholesale distribution of jewelry, precious stones and metals, costume jewelry, watches, clocks, and silverware.”. What is the company’s relationship with goldiam is and why their company holds 3.5% stake in goldiam (Diajewel consistently reduced holding from 8% to 3.5% in 2018-19).

Nishith Shah works at Goldiam International. What puzzles me is that Mr Nishith Shah has a gross remuneration of 9 lakhs PA (as per AR page 37 of pdf) but owns 131027 shares of the company. This is roughly 1.3cr rupees. Mr Nishith is 37 years old as per AR. I’m not saying that this is impossible, just a bit strange since the company does not seem to give any stock options to even the Company secretary or CFO. So does this mean Mr Nishith who joined the company 5 years ago has already developed enough conviction to buy such a large stake in the company he works at? This is not the case, Going back to FY2015AR (page 19) Mr Nishit Mehta has had 0.56% (roughly same as today) stake in the company since 2014 at least (before he joined as an employee). What does this mean? Does this mean that he is close to the promoter family in some way and should be classified as a promoter not a public shareholder. …please clarify this as it has a corporate governance angle

also is related party disclosure done properly

Question 5 Non current investments.

A lot of the investments are in venture capital funds and have blown up in value between 2018 and 201.

You have some 98 crores under “Investment in Venture capital funds” which has increased in value from being 33cr in 2018. 3x in 1 year. A few questions regarding this

  1. Why is the management investing in such risky instruments like Venture capital funds? Is this a gold manufacturing company really?
  2. This is more for my own education. What is “Aggregate amount of unquoted investments”? This is worth 42cr in 2019 and was only 10cr in 2018. And there are no more details available in Note 4 about this.

Please can you share details on this?

Question 6

Can you please give me the list of retailers in the USA where the products are actually sold. i have seen the website but would be keen to know the exact address of the stores please

Thanks again for your time and cooperation.

Thanks

Samllcapvapuefind

3 Likes

i finally got below reply on above questions

ok some good sign and fairly satisfactory reply. What do all think?

7 Likes

i would have personally liked some details on my question 6. Is there anyone from gold business industry in this forum who can explain me the issue with disclosing such information as asked in Question no 6 to the company?

My interpretation and tldr of company replies:
Question1: Satisfactory
Question2: Satisfactory
Question 3: Satisfactory
Question 4:
I think it is a large coincidence that there is a shareholder called Nishith and an employee called Nishit. But satisfactory as well.
Question 5: I find the reply unsatisfactory. It is still not clear why a Gold exporter company worth 100 cr would want to invest 100cr in Venture Capital. Also, 50cr out of this has no breakup, so we do not know at all what the company is doing with these funds. It requires further communication with company management imo (possibly during AGM/Future concalls).
Question 6: I can understand why they do not want to disclose the importers/distributors details for protecting business advantage. But not sure if this is unethical in any way. I know this is stretching this a bit, but could we request them to share details of the smallest importer by trade-value? Overall, im mildly satisfied. Many companies hide their clients and this is not an unheard of thing either.

All in all im satisfied with everything except question 5.

I suggest we invert the problem. We should look for a repository or listing or index of Gold/Diamond/Jewellery importers in USA and work backwards and see how many of them are supplied by goldiam (if this info is available online) There could possibly even be a way to prioritize the list and engage with each of them (on emails) if we really want to go into that level of detail/effort (I don’t).

3 Likes

i agree with you @sahil_vi
Let me do some more digging on this. Their recent actions like orders of 44cr and 60lakh of open market share purchase are again encouraging. I also have concerns on point 5.
Let me see if they can have a audio call with me. I might be better able to dig information on point 5 and 6

2 Likes