Geetanjali Gems Ltd to double its retail footprint

Geetanjali Gems Ltd is expected to double the number of its stores in India and overseas from 5,000 to 10,000 in the next two years. The company owns brands like Asmi, D'damas, Nakshatra and Gili.

The company's efforts are aimed at consolidating its business and changing its business model to focus on diamond jewellery instead of gold and on exports as the business environment remains challenging locally. 

The revenue from gold was 60 per cent in the year 2011 and 40 per cent of the revenue was generated from the diamond segment. The contribution seems to have reversed with Diamond contributing 70 per cent of the revenue and gold contributing 30 per cent in the year 2015, thus indicating a shift in strategy for the company.

The company has in last one year merged about 9-10 different subsidiaries in order to form four large companies.

The stock was trading at Rs 61.55 per share at 10.30 am on Wednesday. The 52 week high for the stock is Rs 67.70 per share. The one-year returns for the stock stand at 62 per cent and for the period of one month, the returns delivered are 30.47 per cent.