Morgan Stanley initiated coverage on International Gemmological Institute (IGI) India with an overweight rating and a target price of Rs 617, citing the growing potential of the lab-grown diamond (LGD) industry. The brokerage highlighted that while diamonds remain a symbol of luxury, affordability has been a key constraint for many consumers. The rise of LGDs, which are more cost-effective, could unlock significant demand in the diamond industry.
IGI India is a leading gem certification and grading institute specializing in diamonds and gemstones. With expertise in providing reliable and standardized quality certifications, IGI plays a crucial role in the diamond trade, ensuring trust and transparency between manufacturers, retailers, and consumers. The institute has been at the forefront of certifying lab-grown diamonds, a rapidly growing segment within the global gemstone market.
IGI is well-positioned to benefit from the expansion of LGDs, given its expertise in certification and quality assurance for diamonds. However, Morgan Stanley noted that the success of LGDs as a mainstream product is still in its early stages and proof of concept remains a work in progress. Despite this, the brokerage views IGI as an attractive way to capitalize on the growth potential of this emerging segment.
