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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
LGD Industry
- 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
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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.
Best Regards,
Ekansh Mittal
Research Analyst
Web: https://www.katalystwealth.
SEBI Research Analyst Registration No. INH100001690
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Name: Ekansh Mittal Email Id: [email protected] Ph: +91 727 5050062
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