Tribhovandas is a good buy for portfolio investors

The gems and jewellery sector plays a significant role in the Indian economy, contributing around 6-7% of the country’s GDP. It is one of the fastest growing sectors, being extremely export oriented and labour intensive. Seeing the potential for growth and value addition, Government of India has declared the gems and jewellery sector as a focus area for export promotion. It has recently undertaken various measures to promote investment and to upgrade technology and skills to promote “Brand India” in the international market. India is deemed to be a hub of the global jewellery market because of its low cost and availability of high-skilled labour. It is also the world’s largest cutting and polishing centre for diamonds. Moreover, India exports 95% of the world’s diamonds, as per statistics from the Gems and Jewellery Export Promotion Council, and has been contributing in a big way to the country’s foreign exchange earnings. The Indian government presently allows 100% foreign direct investment (FDI) in the sector through the automatic route. The US, Russia, Singapore, Hong Kong, UAE, Latin America and China are the biggest importers of Indian jewellery, with exports to the US rising 7.81% year-on-year in October-December 2016, due to a revival in the overall economic activity in the US. The overall net exports of gems and jewellery during April-December 2016 stood at Rs 175,879 crore, whereas exports of cut and polished diamonds stood at Rs 113,171.17 crore, while exports of gold coins and medallions stood at Rs 25,819.48 crore and silver jewellery export stood at Rs 18,010.72 crore.

Tribhovandas Bhimji Zaveri Limited is a 150-year-old jewellery manufacturer, which began operations from a single store at Zaveri Bazaar in Mumbai.

Tribhovandas Bhimji Zaveri Limited is a 150-year-old jewellery manufacturer, which began operations from a single store at Zaveri Bazaar in Mumbai. Over the years it has established itself to become one of the leading premium jewellery brands in the country. The company is renowned for its exclusive jewellery designs manufactured through world class processes and technology conforming to the highest specifications. The company’s in-house design strength, combined with traditional craftsmanship along with modern research and diamond jewellery manufacturing capability results in Tribhovandas Bhimji Zaveri being a market leader in the sector. The stock currently quoting at Rs 100 is an excellent buy with long term investment perspective for portfolio investors.

Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent.