At a Glance
International Gemmological Institute (IGI) India has turned its labs into cash machines. Q2 FY25 EBITDA up 37%, revenue grew 16% to ₹301 Cr, and PAT clocked ₹127 Cr. With a mind-blowing ROE of 54% and ROCE of 68%, this is not just certification—it’s a money-minting operation. But wait, stock trades at 36x P/E and 14x book, so investors better wear sunglasses because valuations are sparkling blindingly bright.
1. Introduction
Imagine charging customers to tell them their diamonds are real—and making more profit than some diamond miners. That’s IGI India for you. The world’s largest independent diamond certification house has found the perfect way to monetize trust. With an expanding network of 31 labs and 18 gemology schools, it’s scaling globally while enjoying margins north of 50%. But with valuations that glitter, is it all shine and no substance?
2. Business Model (WTF Do They Even Do?)
- Core Business: Certification of natural & lab-grown diamonds, colored stones, and studded jewelry.
- Education: Gemology courses via 18 schools.
- Global Network: Presence in 10 countries.
Revenue is fee-based, asset-light, and high margin—essentially a SaaS-like model in the gem world. The downside? Growth depends on diamond trade volumes, a cyclical market.
3. Financials Overview
Q2 FY25 Snapshot
- Revenue: ₹301 Cr (+16% YoY)
- EBITDA: ₹174 Cr (+37% YoY)
- OPM: 58%
- PAT: ₹127 Cr (+62% YoY)
- EPS: ₹2.93
TTM Snapshot
- Revenue: ₹1,121 Cr
- PAT: ₹491 Cr
- Margins: OPM 60%, ROE 54%, ROCE 68%.
4. Valuation
- P/E: 36x – premium like a flawless diamond.
- P/B: 14.2x – the market loves this bling.
- EV/EBITDA: ~22x.
Fair Value Range: ₹350 – ₹420 (current ₹407 is fair, but pricey for risk-takers).
5. What’s Cooking – News, Triggers, Drama
- EBITDA margins at 58-64% – luxury-level profitability.
- Global Expansion continues; labs opening in emerging markets.
- Working Capital Days jumped to 113 – a crack in the diamond?
- Dividend Yield at 0.6% – pocket change, but they prefer reinvesting.
6. Balance Sheet
| (₹ Cr) | Dec 2023 | Dec 2024 | Jun 2025 |
|---|---|---|---|
| Assets | 603 | 1,504 | 1,552 |
| Liabilities | 95 | 441 | 315 |
| Net Worth | 509 | 976 | 1,151 |
| Borrowings | 31 | 145 | 132 |
Comment: Healthy equity buildup, low borrowings, scaling fast.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | Dec 2022 | Dec 2023 | Dec 2024 |
|---|---|---|---|
| Operating | 194 | 303 | 393 |
| Investing | -43 | -85 | -1,634 |
| Financing | -154 | -162 | 1,188 |
Observation: Huge capex (investing outflow) funded by equity raise—growth phase confirmed.
8. Ratios – Sexy or Stressy?
| Ratio | 2023 | 2024 | TTM |
|---|---|---|---|
| ROE | 99% | 68% | 54% |
| ROCE | 99% | 68% | 68% |
| PAT Margin | 49% | 41% | 44% |
| D/E | 0.05 | 0.15 | 0.11 |
Verdict: Ratios sexier than a Cartier ad.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | 2023 | 2024 | TTM |
|---|---|---|---|
| Revenue | 639 | 1,053 | 1,121 |
| Operating Profit | 450 | 600 | 669 |
| PAT | 325 | 427 | 491 |
Comment: Doubling profits in two years—impressive runway.
10. Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| IGI India | 1,121 | 491 | 36 |
| NESCO | 732 | 390 | 22 |
| CMS Info | 2,453 | 375 | 21 |
Verdict: IGI’s margins are king, but valuations scream “luxury pricing”.
11. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 76.55% – very high control.
- FIIs: 10.2% (rising).
- DIIs: 5.4% (stable).
- Public: 7.8%.
12. EduInvesting Verdict™
IGI India is a rare gem—scalable, high-margin, and global. However, the stock’s valuation premium leaves little room for error. If diamond certification demand dips or working capital pressures rise, margins could lose some sparkle.
SWOT Analysis
- Strengths: Asset-light, strong brand, global footprint, insane ROE.
- Weaknesses: High valuation, working capital stress.
- Opportunities: Growth in lab-grown diamonds, new markets.
- Threats: Regulatory changes, competition from GIA & others.
Final Word: If you like luxury and can handle volatility, IGI India shines bright. For value hunters, this jewel may be too polished.
Written by EduInvesting Team | 29 July 2025
SEO Tags: International Gemmological Institute, IGI India, Q2 FY25 Results, Diamond Certification
