Editor’s Note
This article highlights a bullish outlook from Morgan Stanley on IGI, driven by its strategic acquisition, market diversification, and strong financial position. The analysis suggests significant upside potential for this small-cap gemology and certification firm.
Morgan Stanley maintains a bullish outlook on IGI, citing the AGL acquisition’s expansion into the US market, diversification into colored gemstones, strong cash position, and long-term revenue growth visibility, implying an upside potential of approximately 52% to its target price.
This small-cap stock, engaged in diamond and jewelry certification, lab-grown diamond grading, colored gemstone reports, and gemology education, is in focus after Jefferies set a target price of Rs. 466, representing a potential upside of 52.14 percent.
With a market capitalization of Rs. 13,237.05 crores, shares of International Gemmological Institute (India) Limited reached an intraday high of Rs. 310.40 per equity share, rising nearly 0.40 percent from the previous day’s closing price of Rs. 309.15. The stock has since retreated and is currently trading at Rs. 306.30 per share.
Prominent brokerage firm Morgan Stanley has recommended an “Overweight” rating on International Gemmological Institute (India) Limited with a target price of Rs. 466 per share, indicating an upside potential of 52.14 percent from its current market price.
Morgan Stanley remains positive on IGI because the acquisition of AGL strengthens IGI’s position in an important global market. The deal is expected to add modest but meaningful revenue to both consolidated and international business, improving IGI’s scale. AGL is a respected name in colored gemstone certification, and combining its expertise with IGI’s global reach creates a stronger platform in a fast-growing niche.
The acquisition also helps IGI diversify beyond diamonds into colored gemstones, reducing dependence on a single segment. The US is a key focus market, and AGL’s strong presence there gives IGI better access to high-value clients. Retaining AGL’s leadership team ensures continuity, credibility, and trust with customers.
Importantly, IGI is funding this expansion from a strong cash position, limiting financial risk. Morgan Stanley sees this as a disciplined growth move that supports long-term revenue expansion and strengthens IGI’s global brand.
International Gemmological Institute (India) Limited’s revenue increased from Rs. 1,053.16 crore in CY24 to Rs. 1,229.10 crore in CY25, representing growth of 16.71 percent. Net profit also grew by 24.41 percent from Rs. 531.60 crore in CY24 to Rs. 427.29 crore in CY25.
International Gemmological Institute (India) Limited was founded in 1999, is headquartered in Mumbai, and is a leading gem certification laboratory. The company specializes in grading natural and lab-grown diamonds, colored gemstones, and finished jewelry, issuing trusted reports that verify quality, authenticity, and value for the global trade.
Equipped with advanced laboratories, IGI uses technologies such as 3D imaging to deliver precise assessments of cut, color, clarity, and carat weight. Beyond certification, the institute provides gemology education through professional courses and digital learning platforms, helping train industry experts worldwide. IGI maintains a strong international presence across Asia, Europe, and North America.
Regarding financial highlights, International Gemmological Institute (India) Limited’s revenue increased from Rs. 265 crore in Q4 CY24 to Rs. 320 crore in Q4 CY25, representing growth of 20.75 percent. Net profit also grew by 18.42 percent from Rs. 114 crore in Q4 CY24 to Rs. 135 crore in Q4 CY25.
International Gemmological Institute (India) Limited’s revenue and net profit have grown at a CAGR of 35.78 percent and 30.03 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE stand at 53.6 percent and 43 percent, respectively. International Gemmological Institute (India) Limited has an earnings per share (EPS) of Rs. 12.3, and its debt-to-equity ratio is 0.10x.
