Hope you are doing well.
In order to recommend the best stock ideas to our members, we keep looking for new opportunities and add them to our watch list.
One industry we keep reading about whenever we get an opportunity is - Lab Grown Diamonds (LGDs). As per our understanding, currently Goldiam International is the only major listed company dealing in LGDs.
Did you know? The market share of Lab Grown Diamonds (LGDs) is forecast to increase to 10% (of the worldwide diamond market) by 2030 from 3% currently. LGDs also cost up to 40-50% less than natural ones.
We believe these facts alone make it up for an interesting sector to study about and find potential investment opportunities, if any.
Recently, we released our latest Special situation opportunity for our Alpha + members.
For the latest special situation recommendation, the expected holding period is 3-4 months with maximum upside potential of 25% and margin of safety of around 20-25%. You can get it along with our other recommendations by subscribing HERE
- What are LGDs? - Lab grown diamonds (lab created, man-made, engineered diamonds) are chemically, optically and physically identical to earth mined diamonds, but are more affordable than mined diamonds.
- Are LGDs real diamonds? - Even the most sophisticated gem laboratories certify them as diamonds. Only difference is the origin as they are grown under controlled environment in a lab and not mined from earth.
- How are LGDs made? - Natural diamonds grow through intense heat and pressure which over millions of years transforms carbon atoms into diamonds.
LGDs begin a with tiny piece of diamond, known as diamond seed. This seed is placed inside a special chamber designed to mimic conditions within Earth’s crust. The seed coated in pure carbon transforms into a synthetic diamond, chemically identical to natural diamond
- Latest industry information -
- Electricity charges account for almost 70% of the cost of manufacturing of LGDs
- Gujarat govt. has decided to wave electricity duty on production process of LGDs
- At present, units using HT (high tension) connection are paying 15% electricity duty and LT (low tension) connections 10% duty
- Over the last few years, no. of LGD machines in Surat has increased from 20-25 to over 1,000
- As per GJEPC data, provisional gross exports of polished LGDs for H1 FY 23 has increased by 60% YOY to Rs 7,400 crore
- China is world's largest producer of LGDs with 56% market share
- India, US and Singapore have market share of 15%, 13% and 10% respectively
Recently, we released our new stock recommendation for our Premium Members. It's a leading Pharmaceutical company with global leadership in its product segment, net debt free and available at very reasonable valuations. Can read about the company HERE
Disclaimer: This is not a recommendation to buy/sell Goldiam International. These notes are as announced by the companies on exchanges and only for the purpose of information and education.
SEBI Research Analyst Registration No. INH100001690
Research Analyst Details
Name: Ekansh Mittal Email Id: [email protected] Ph: +91 727 5050062
Details of Associate: Not Applicable
Analyst Certification: The Analyst certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report.
The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision
This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. Ekansh Mittal/Mittal Consulting/Katalyst Wealth is not soliciting any action based upon it. This report is not for public distribution and has been furnished to you solely for your information and should not be reproduced or redistributed to any other person in any form. This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Ekansh Mittal or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Neither Ekansh Mittal, nor its employees, agents nor representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. Ekansh Mittal/Mittal Consulting or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement.
The recipients of this report should rely on their own investigations. Ekansh Mittal/Mittal Consulting and/or its affiliates and/or employees may have interests/ positions, financial or otherwise in the securities mentioned in this report. Mittal Consulting has incorporated adequate disclosures in this document. This should, however, not be treated as endorsement of the views expressed in the report.
We submit that no material disciplinary action has been taken on Ekansh Mittal by any regulatory authority impacting Equity Research Analysis.
Disclaimer: You can access it here - LINK
Whether the research analyst or research entity or his associate or his relative has any financial interest in the subject company/companies and the nature of such financial interest – No
Whether the research analyst or research entity or his associates or his relatives have actual/beneficial ownership of 1% or more securities of the subject company (at the end of the month immediately preceding the date of publication of the research report or date of the public appearance) – No
Whether the research analyst or research entity or his associate or his relative has any other material conflict of interest at the time of publication of the research report or at the time of public appearance – No
Whether it or its associates have received any compensation from the subject company in the past twelve months – No
Whether it or its associates have managed or co-managed public offering of securities for the subject company in the past 12 months – No
Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No
Whether it or its associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No
Whether the subject company is or was a client during twelve months preceding the date of distribution of the research report and the types of services provided – No
Whether the research analyst has served as an officer, director or employee of the subject company – No
Whether the research analyst or research entity has been engaged in market making activity for the subject company – No