Gold has long been valued in India as a sign of wealth and financial stability. Traditionally, people invested in gold mainly through physical items like jewellery. However, with the introduction of modern financial products, investors can now also buy gold stocks, allowing them to take advantage of the gold market’s performance. However, It’s important to check the recent market trends and gold stock price and understand the gold stock market before making any decision. In this article, let’s look at some of the best gold-related stocks in India for October 2024 based on the 5-year CAGR.
| Name | Market Cap (₹ in crore) | PE Ratio | 5Y CAGR (%) | 1Y Return (%) |
| Sky Gold Ltd | 3,659.72 | 90.39 | 96.67 | 726.76 |
| Thangamayil Jewellery Ltd | 6,515.02 | 52.86 | 69.54 | 88.43 |
| Sovereign Diamonds Ltd | 29.75 | 21.72 | 57.52 | 123.48 |
| Deep Diamond India Ltd | 45.46 | 108.23 | 56.43 | 63.39 |
| KDDL Ltd | 3,652.52 | 35.58 | 51.27 | 45.9 |
| Parshva Enterprises Ltd | 179.08 | 688.79 | 45.39 | -0.71 |
| Tribhovandas Bhimji Zaveri Ltd | 1,751.35 | 32.18 | 44.4 | 136.76 |
| Timex Group India Ltd | 1,311.85 | 62.95 | 30.41 | -16.35 |
| Titan Company Ltd | 3,25,560.46 | 93.12 | 24.02 | 15.9 |
| Renaissance Global Ltd | 1,251.63 | 17.3 | 20.9 | 27.46 |
Note: The best gold stocks listed in India listed in the stock market here are sorted as per the 5-yr CAGR as of October 07, 2024.
Sky Gold Limited specialises in designing, making, and selling gold jewellery. The company operates on a B2B (business-to-business) model, primarily selling its products to mid-range jewellers and boutique shops. These retailers then offer the jewellery through online platforms and their physical stores.
In the quarter ending June 2024, Sky Gold Limited’s revenue increased to ₹723.03 crore from ₹513.38 crore in the previous quarter. Its net profit also increased to ₹21.23 crore from ₹13.61 crore in the earlier quarter.
Key metrics:
Thangamayil Jewellery Limited runs a chain of retail jewellery stores in various districts of Tamil Nadu, which accounts for 40% of India’s total gold consumption. The company mainly sells four types of products: gold, silver, diamonds, and platinum, with gold sales being its largest source of revenue.
For the quarter ended June 2024, the company’s revenue increased to ₹1,220.33 crore from ₹981.16 crore in the preceding quarter. Meanwhile, the net profit increased to ₹56.56 crore from ₹28.24 crore in the previous quarter.
Key metrics:
Sovereign Diamonds Ltd was established in 1974 and specialises in manufacturing and selling gold jewellery, diamond-studded jewellery, and silver items. The company’s product range includes gold, diamonds, precious stones, semi-precious stones, and pearls. In the fiscal year 2022, approximately 97% of its revenue came from the sale of manufactured goods, while around 3% was generated from other income.
For the quarter ended June 2024, the company’s revenue decreased to ₹5.68 crore from ₹8.07 crore in the preceding quarter. Meanwhile, the net profit decreased to -₹0.07 crore from ₹0.33 crore in the previous quarter.
Key metrics:
Incorporated in 1993, Deep Diamond India Ltd specialises in gold and diamond-studded jewellery. The company offers a wide range of 18K real diamond jewellery manufactured at its own facility, along with a 100% buyback policy on all its real diamond products. This includes rings, earrings, pendants, mangal sutra pendants, bangles, bracelets, necklace sets, nose pins, studs, and solitaires.
For the quarter ended June 2024, the company’s revenue decreased to ₹0.51 crore from ₹1.70 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹0.29 crore from ₹-0.11 crore in the previous quarter.
Key metrics:
Incorporated in 1981, KDDL manufactures watch components such as dials and hands, as well as precision engineering goods under the brand name Eigen. In terms of geographical revenue, India contributed 79% in FY24, down from 82% in FY22, while Switzerland accounted for 16%, up from 13%. The company operates 63 retail stores across 24 cities in India as of May 2024, an increase from 50 stores in 17 cities in May 2022, with locations in major cities like New Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, and Kolkata.
For the quarter ended June 2024, the company’s revenue decreased to ₹81.40 crore from ₹88.01 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹9.76 crore from ₹176.62 crore in the previous quarter.
Key metrics:
India’s gems and jewellery export sector is one of the largest globally, accounting for 4.3% of the world’s jewellery consumption in 2022. India’s exports are projected to reach US$ 100 billion by 2027. Additionally, India is the second-largest consumer of gold, with demand anticipated to reach 800 to 900 tonnes in 2024.
From April to June 2024, India’s gems and jewellery exports totalled US$ 6.87 billion. Cut and polished diamonds made up the largest portion at 53.47%, followed by gold jewellery at 32.39% and silver jewellery at 3.36%. In June 2024 alone, gold jewellery exports were valued at US$ 608.01 million, while imports for the same month were only US$ 88.61 million.
India has 10 special economic zones (SEZ) dedicated to gems and jewellery, housing over 500 manufacturing units that contribute 30% to the country’s total exports. The Revised SEZ Act is expected to further enhance this sector.
In the Union Budget 2024, the government proposed lowering the basic customs duty on gold and silver to 6% and platinum to 6.4%. In the previous budget, the import duty on silver was increased to 10% to match gold and platinum rates.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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