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Gitanjali tanks 61% in seven days, PC Jeweller plunges 42% in one month

SI Reporter/Mumbai 22 Feb 18 | 10:56 AM

ED(Enforcement Directorate) officials conduct raid at a Nakshatra store in connection with multi-crore Punjab National Bank scam (Photo: PTI)

Shares of gems and jewellery companies continued under pressure falling by up to 61% in past one month on concerns of tighter regulations after the fraud at the state-owned Punjab National Bank (PNB).

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Gitanjali Gems is locked in lower circuit for the sixth straight trading sessions, down 5% at Rs 26.10, also its fresh low on the BSE. In past seven trading sessions, it tanked 58% from Rs 62.85 on February 12, following the PNB's declaration of unearthing a fraud of Rs 113 billion involving diamantaire Nirav Modi.

The exchanges has changed circuit filter of the stock from 10% to 5% with effect from today.

On February 14, the PNB revealed some rogue employees had issued letters of undertaking (LoUs) via the SWIFT (Society for Worldwide Inter-Bank Financial Telecommunication) system on behalf of companies belonging to diamantaire Nirav Modi and associate Mehul Choksi, the promoter of Gitanjali Gems.

In past one month, Gitanjali Gems plunged 62% from Rs 26.10 on the BSE against 5.7% decline in the S&P BSE Sensex.

At 10:29 am; PC Jeweller was trading 3.5% at Rs 335, extending its previous day’s 4% decline on the BSE. The stock slipped 42% from Rs 582 during past one month.

PC Jeweller said it is not aware of the reason of sudden decrease in price of equity shares of the company.

“We would also like to clarify that the company does not use the instruments of LUT/LOC etc in its business transactions. The company does not have any international transactions in diamonds. It procures all its diamonds from local markets on cash basis only," PC Jeweller said with reference to decrease in price.

According to Business Standard report, the rising stress in the industry would mean a few more casualties in the next few quarters.

Three-four big gems and jewellery firms are showing financial weaknesses and might find it tough to withstand shocks; the report suggested quoting industry sources. CLICK HERE TO READ FULL REPORT.  

COMPANY LATEST ONE-MONTH BEFORE LOSS(%) GITANJALI GEMS 26.10 67.55 -61.36 PC JEWELLER 334.40 581.85 -42.53 RADHIKA JEWEL. 28.40 43.00 -33.95 TARA JEWELS 13.85 18.30 -24.32 T B Z 106.30 135.65 -21.64 THANGAMAYIL JEW. 492.05 612.00 -19.60 GOLKUNDA DIAMOND 16.70 20.50 -18.54 LYPSA GEMS 30.60 37.50 -18.40 SWARNSARITA GEMS 19.50 22.30 -12.56 GOLDIAM INTL. 71.75 81.65 -12.12 TITAN COMPANY 822.00 908.95 -9.57 RAJESH EXPORTS 798.10 823.60 -3.10

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