Goldiam: LGD Growth Versus Valuation Risk

$GOLDIAM Goldiam International is benefiting from the growing acceptance of lab-grown diamond (LGD) jewellery. The company controls much of the value chain, from diamond cultivation and jewellery design to manufacturing and exports. It supplies large US retailers and is expanding in India through its ORIGEM retail brand. LGD jewellery contributed 90.7% of B2B export sales in Q1FY27, up from 87.8% in Q1FY26. Its LGD realisation stood at $722 per piece, well above $495 for mined diamonds, supporting profitability. The financial performance was strong. Total income rose 54% year-on-year to ₹363.7 crore, while EBITDA jumped 120.5% to ₹103.9 crore. The EBITDA margin improved to 28.6% from 20%, and adjusted for tariff refunds, it still stood at 24%. Net profit more than doubled to ₹74 crore. The order book was ₹225 crore as of June 30, 2026, with execution expected within four months. Goldiam’s hybrid casting model could reduce exposure to US tariffs. Unfinished jewellery is produced in the US, sent to India for polishing and diamond setting, and may qualify as a US-origin product. ORIGEM provides an additional growth opportunity. Goldiam had 26 stores and planned seven more, with a long-term target of 100 outlets. However, the business generated only ₹8.2 crore revenue and suffered an operating loss of ₹5–6 crore in Q1FY27. Execution and store profitability will therefore be crucial. The company’s share with its largest US retail customer remains below 2%, leaving room for expansion. However, valuation is a concern. At 26.5 times earnings, the stock trades above its five-year median of 22.8 times and the industry median of 20.3 times. ROCE of 23.9% and ROE of 18.5% are healthy but do not fully justify an expensive valuation.