Editor’s Note
This article highlights a significant market movement for Mini Diamonds (India) Ltd, driven by a new contract win. While such news can influence short-term trading, investors should consider the company’s fundamentals and broader market conditions before making investment decisions.
Shares of Mini Diamonds (India) Ltd surged over 8% after the company secured a new order worth Rs 12 crore. This contract from a Mumbai-based company has strengthened the company’s order book and boosted investor confidence. This small-cap stock, priced below Rs 30, has delivered multibagger returns in past years.
Shares of the lab-grown diamond maker witnessed strong momentum on Monday, 23 February. The stock jumped 8.3% to an intraday high of Rs 24.40, significantly above its previous close of Rs 22.54. The current price of the company’s share is Rs 23.08. Its 52-week high is Rs 43.60 and low is Rs 19.50. The new order is expected to further strengthen the company’s order book, and its impact may continue to be seen in this penny stock priced below Rs 30.
The company has received a domestic purchase order worth Rs 12 crore from AB Diamonds India Private Limited, a major player based in Mumbai. Under this order, Mini Diamonds is to supply lab-grown polished diamonds. The company must complete the delivery within four months from the order date. Payment will be made within 150 days of order completion.
Competition in the lab-grown diamond segment is intense, and this order could strengthen the company’s credibility and market hold. It is also expected to make the domestic demand pipeline more stable.
Established in 1987, Mini Diamonds has a strong track record in the import-export business. The company has a manufacturing facility in Mumbai where diamond cutting and polishing are done using advanced technology. The company also manufactures lab-grown diamond jewelry and supplies to both domestic and international markets through B2B and B2C channels.
The company’s market capitalization is Rs 272 crore. The share’s P/E is approximately 50 times and ROE is around 13%. In terms of returns, the stock has delivered a massive 482% return over 3 years and about 3407% over 5 years. However, over the past year, it has given a negative return of 4 percent.