Broken Jewelry Stocks up to 50% , Make Such Investment Strategies

Rudra Investment SEBI Registered Stock Market Advisory

Jewellery stocks have broken more than 50% in the past one month. Due to fall in jewellery stocks, due to lack of trend in buying investors' gold, the import duty cut in the budget and gold prices remain stable. On the other hand, the disclosure of jewellery companies in the fraud of 11,356 crore rupees in PNB has come under the scanner of the entire sector, which is a bad news for this sector. Experts say there are still concerns about the jewellery sector. In such a situation, investors should stay away from this sector at the moment.

Broken Jewellery Stocks up to 50%

Jewellery stocks have declined by 50 percent in one month. The highest decline has been 50.81 percent in Gitanjali James. Besides, PC Jewelers dropped 34.16 percent.

Company fall (in percent)

• Gitanjali James 50.81%
• PC Jeweler 34.16%
• Radhika Jeweltec 24.94%
• TBZ 24.15%
• Thongamyl Jewelery 17.44%

Gitanjali James's name came in PNB fraud

The name of Gitanjali James owner Mehloo Vakasi is coming in the PNB fraud case. The stock has broken 40% in this three days. Investors lost 300 crores in three days due to declining stock. On February 12, the company's market cap was Rs 745.49 crores. The owner of this company, Mehul Chowki, is also being named in the fraud case.

These are worries of the jewellery sector

Other companies may also come under investigation

Jagdish Thakkar, director of Fortune Fiscal, said that due to the name of Gitanjali James in PNB fraud, the difficulties of other jewellery companies have increased. Other companies also work on this module. Now they will also be examined. The problems of the jewellery sector are going to increase. In addition to Gitanjali, if there is such a case in any other company, the investigation will have a negative effect on the jewellery sector.

Issue of Corporate Governance

Sandeep Jain, Director of Trade Swift Broking, says that corporate governance is the issue of jewellery companies. A few days ago this was seen in PC Jeweler. The news of selling a stake in the company promoter got a fall in stocks.

The whole sector came in grip

Rudra Investment Stock Market Expert says the effect of the fraud in PNB lies on the jewellery sector. Jewellery stocks have seen the decline since last three days. However, after the fraud was highlighted, the government quickly came into action mode, which is a good step. ED has seized assets worth more than Rs. 5 thousand crores. At the moment, the sentiments of investors have worsened, which has led to the fall in stocks. Those stocks that have been broken will be better in the long term.