Goldiam International sinks after buyback plan

Goldiam International sinks after buyback plan

Goldiam International declined 4.08% to Rs 62.30 at 13:46 IST on BSE after the company said on Monday, 25 February 2008, its board approved buyback of shares up to 5.5% of its capital at a price not above Rs 85 each.

The company made this announcement after market hours on Monday, 25 February 2008.

Meanwhile, BSE Sensex was up 47.36 points or 0.27% to 17,697.93 following overnight rally in US stocks. US stocks rose sharply on Monday, 25 February 2008, on signs the two largest bond insurers would stabilize, bringing a wave of relief to a market dogged by concerns of further bank write-downs.

On BSE, 18,567 shares were traded in the counter. The scrip had an average daily volume of 58,089 shares in the past one quarter.

The stock hit a high of Rs 67.40 and a low of Rs 61.85 so far during the day. The stock had a 52-week high of Rs 137 on 26 February 2007 and a 52-week low of Rs 48.70 on 13 February 2008.

The small-cap scrip had outperformed the market over the past one month till 25 February 2008, gaining 6.04% compared to the Sensex’s decline of 3.87%. It had also outperformed the market in the past one quarter, rising 2.44% compared to Sensex’s decline of 7.72%.

The company’s current equity is Rs 27.03 crore. Face value per share is Rs 10.

The current price of Rs 62.30 discounts its Q3 December 2007 annualized EPS of Rs 5.21, by a PE multiple of 11.96.

The total cost of the buyback would not exceed Rs 9.38 crore, the diamond and jewellery exporter said in a statement. The buyback would remain open till 31 December 2008, it added.

On 8 January 2008, Goldiam International entered into a contract worth $10 million with Socotra Diamonds, Dubai, U.A.E., for export of jewellery.

Goldiam International’s net profit declined 50.6% to Rs 3.52 crore on 30% fall in net sales to Rs 38.19 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing and exporting diamond and gold jewellery products.