Goldiam Intl soars 14%, hits fresh record high; stock zooms 625% in 1 year

The Board of Goldiam International is scheduled to meet on September 13 to consider share buyback

Goldiam International delivered a stellar performance on Dalal Street on Wednesday as the company's shares skyrocketed to a fresh life-time high of Rs 842 on the National Stock Exchange (NSE), up 14 per cent in the intra-day trade.  
 

The strong buying at the counter can be attributed to company’s plan to consider share buyback. "A meeting of the board of directors of the Company will be held on Monday, September 13, 2021, to inter alia, consider a proposal for buyback of equity shares of the Company," the company had said on August 30. 

Share buyback is the acquisition of its own shares by a company with an objective to return surplus cash to the shareholders holding the equity shares. Buyback is a more efficient form of distributing surplus cash to the shareholders holding equity shares of the Company.

The Buyback would help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value. It would help in optimizing the capital structure.

That apart, a slew of positive announcements seem to be aiding the bullish sentiment at the counter for quite some time. The stock has almost doubled in the last three months, and has logged a superb 625 per cent appreciation in one year. 

Last month, the company had announced receipt of Rs 20 crore worth export orders for larger carat lab-grown diamonds jewellery from its international clients.

Prior to that, the company had reported strong set of earnings for the Q1FY22 quarter on the back of record total income. The company’s total income grew almost 9-fold to Rs 78.35 crore in the quarter ended June 2021, as against Rs 8.62 crore in the corresponding quarter a year. Net Profit jumped to Rs 14.68 crore from Rs 0.47 crore in the same period.