Su-Raj Diamond and Jewellery - Rs.61.00

Incpororated in 1985, Su-Raj Diamonds and Jewellery Limited (SDJL) is the flagship company of the Su-Raj Group founded in the early Sixties. It went public in 1986 and was the first diamond company to do so. SDJL’s core business includes manufacture and export of gold, silver & platinum jewellery studded with diamonds, colour stones and semi-precious stones as well as plain jewellery. In fact, it is one of the country’s largest manufacturer and exporter of polished diamonds and also a leading player in the international fine gold jewellery market.

SDJL has nine state-of-the-art manufacturing facilities across the country equipped with machining, facilities and processors that ensure quality merchandise and timely delivery. Its new plants at Bangalore, Kolkatta and Goa boast of the most modern facilities like latest casting machines, CAD/CAM design tools, laser engraving and welding, RPT machine for model making etc. Its team of nearly 100 passionate professionals churns out more than 700 new designs every month making its jewellery comparable with the best standards prevailing in Europe and USA. Besides, all its products are ‘Hallmarked’ guaranteeing its purity. SDJL is a ‘star trading house’ with a global footprint and a marketing network spanning New York , Antwerp , Bangkok , Hong Kong, UAE and Los Angeles. Presently, the company is focusing more on markets like the oil rich middle. Visualising the huge domestic potential, SDJL is also positioning itself in the domestic retail segment through its subsidiary and associate companies. Su-Raj Diamond Dealers Ltd. and Forever Precious Jewellery and Diamonds Ltd. Forever Precious is a major player in the B2B jewellery market in India. For the overseas market, its acquisition of Koradiam N.V. in Antwerp in Belgium is being used as its jewellery retail face. The company is also setting up jewellery manufacturing units in special economic zones (SEZs) in Kochi and Kolkata.

Since the early Nineties, Jewellery has averaged a growth of over 30%, making India the fastest growing Jewellery exporter in the world. In an industry where market reputation is the key asset, the company has carved a niche for itself with its professional set-up and transparent operations. It has an unmatched dividend paying record and has even paid as high as 40% dividend. For FY06, company is expected to clock a turnover of Rs.1175 cr. and NP of Rs.36 cr. which translates into EPS of Rs.9. For FY07, it can report Rs.11~12 EPS. Apart from this, it has huge reserves of more than Rs.450 cr. i.e. a book value of around Rs.125. With the Gems and Jewellery sector buzzing along with the listing of Gitanjali Gems, investors can accumulate this scrip with a price target of Rs.100 in 12~15 months.