Kalpesh’s Portfolio

Would like to share some perspective on some of the points posted here:

The TG for LGD is likely to be different from that for natural diamonds… Today, 4% of Indian customers have purchased diamonds… So it opens up a huge market of potential customers, who are looking to purchase something as special as a diamond at an affordable price point. Lot of aspirational customers and millennials who would want to own / gift a diamond as price is 40 to 50% cheaper than that of natural diamonds.
Its more about where the demand is coming from or what customers ask for that will decide what orders they will place… Leading jewellery chains in US like Signet, De Beers have not only accepted but are now betting big on LGD space; after initial skepticism… Forbes article Link –

More on LGDs in this podcast . Key points

• Huge acceptance and demand for LGD coming from millenials
• Same 5 Cs in LGDs as that in natural diamonds – Cut, Carat, clarity , colour, and also conflict free (since not mined). So its identical to natural diamonds. which implies that there are lesser barriers to acceptance
• Preferred option among millennials – getting to own a bigger size diamond for the same price… eco friendly and pocket friendly as well, than natural diamonds.
• 4% of Indian customers have purchased diamonds… So opens up a huge market of aspirational customers wanting to own a diamond at a much lower price point

Someone can start their diamond manufacturing but to get the designs, cut, colour, etc in LGD with precision, will take some time – one or two years; and this is the lead time that Goldiam enjoys over competition.

They are the only integrated manufacturer in lab grown diamonds right from growing diamond to cutting lab created diamonds to manufacturing it into jewelry of own designs and distributing it to the end retailers. A key differentiator which protects their margins is technology (significant time spent in R & D to get the right formula) and distribution capabilities (being end to end integrated and selling to their distribution)
Besides 10 years is a long timeframe, very difficult to predict. One must keep monitoring the increase or decrease in margins – underlying reasons for the same.

This is speculation. So no comments.
The management has guided for a modest growth of 5 to 10% for current FY owing to the inflationary pressure; but FY 24 should see the higher growth figures returning…
A key risk in the business is the cyclicality involved as it’s a discretionary spend and a prolonged recessionary phase may result in a slightly longer phase of subdued growth.

Disc: Invested