1. At a Glance
IGI India is the kid in class who doesn’t own the diamonds but hands out the report cards. And oh boy, what a business model—₹1,121 Cr revenue, ₹491 Cr PAT, 60% OPM, and ROE north of 50%. Basically, auditors of diamonds are richer than most diamond merchants. Their stock debuted in December 2024 at IPO price, shot up to ₹642, and now trades at ₹340—because apparently, the market thinks margins this fat must be cholesterol, not profit.
2. Introduction
Imagine a world where you don’t make the jewelry, you just certify it—and people pay you handsomely for the privilege. That’s IGI. Born in Belgium, raised in Antwerp’s diamond lanes, now with 31 labs in 10 countries and 18 gem schools, the company turned “grading reports” into a billion-dollar industry.
India got its version in the form of International Gemmological Institute (India) Ltd, now listed after a ₹4,225 Cr IPO in Dec 2024. Unlike typical infra or PSU stocks, here the story is simple: every diamond sold globally needs a certificate. IGI makes those, plus they certify lab-grown diamonds (the new vegan avocado toast of jewelry).
And here’s the kicker: lab-grown diamonds already form59% of IGI’s revenue mix. So, while traditional jewelers debate “real vs fake,” IGI just counts the grading fees on both sides. Like the referee in a boxing match—you get paid whether Tyson wins or not.
3. Business Model (WTF Do They Even Do?)
IGI isn’t a jeweler; it’s a certifier. Services:
- Diamond grading:Cut, color, clarity, carat—the 4Cs, plus nerdy stuff like fluorescence and symmetry.
- Colored stone grading:Rubies, sapphires, emeralds. If it shines, IGI slaps a report on it.
- Jewelry certification:Finished jewelry assessment, including craftsmanship.
- Education:Gemology schools, training future graders.
Key customer base: 7,500+ across 10 countries—jewelers, wholesalers, retailers. Think Tiffany’s, Malabar Gold, and that shady Surat shop promising “100% authentic.”
Revenue mix FY24:
- Lab-grown diamonds: 59%
- Natural diamonds: 19%
- Studded jewelry/colored stones: 20%
- Education/ads/other: 2%
Basically, they don’t care if the diamond came from Botswana mines or a Surat lab—business sparkles either way.
4. Financials Overview
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹301 Cr | ₹260 Cr | ₹305 Cr | 15.7% | -1.3% |
| EBITDA | ₹174 Cr | ₹127 Cr | ₹196 Cr | 37.0% | -11.2% |
| PAT | ₹127 Cr | ₹78 Cr | ₹141 Cr | 62.6% | -9.9% |
| EPS (₹) | 2.93 | 1.96 | 3.26 | 49.5% | -10.1% |
Annualised EPS = ₹11.7P/E = ~29.
Commentary: A certification company pulling OPM near 60% is unheard of. Compare that to your bank FD (6%) and cry.
5. Valuation (Fair Value RANGE Only)
Method 1:P/EIndustry PE ~24. IGI trades at ~30. Annualised EPS = ₹11.7 → FV = 280–350.
Method 2:EV/EBITDAEV = ₹14,713 Cr. TTM EBITDA = ₹669 Cr. EV/EBITDA = 22x. Sector average18x → FV = ₹12,000–13,000 Cr (₹280–310/share).
Method 3:DCFIf revenue grows 20% CAGR and margins sustain, PAT could double in 4 years → FV₹20,000 Cr (₹450/share).
Educational FV Range:₹280 – ₹450.(This FV range is for educational purposes only and is not investment advice.)
6. What’s Cooking – News, Triggers, Drama
- IPO 2024:Raised ₹4,225 Cr, listed Dec 20th.
- Dividend 2025:First interim dividend of ₹2.50/share announced Aug 2025. Finally, a cash-back scheme that doesn’t involve credit cards.
- Expansion:2.1 lakh sq ft Surat mega lab under construction (2025 completion). Basically, the
