Gold stocks represent shares of companies engaged in the mining, production, and trading of gold. These stocks provide investors with exposure to gold price movements without the need to own physical gold. In India, where gold has long been a cornerstone of wealth and financial security, investing in the best gold stocks in India has gained traction as an alternative to traditional gold purchases.
According to the World Gold Council (WGC), investment demand for gold has been growing at an average annual rate of 15% since 2001, highlighting the metal’s resilience and increasing investor interest. With India being the second-largest consumer of gold globally, the best gold stocks in India offer a promising opportunity for investors looking to capitalize on the gold market’s potential while avoiding the complexities of storing physical gold. In this article, we will explore some of the top gold stocks in India to watch right now, analyzing their performance, market trends, and long-term growth potential.
Overview of Contents
Top Best Gold Stocks in India
| Stock Name | Market Cap (₹ Cr) | 1-Year Return (%) |
|---|---|---|
| Goldiam International Ltd | 3,990.93 | 104.81 |
| Muthoot Finance Ltd | 88,669.32 | 56.04 |
| Tribhovandas Bhimji Zaveri Ltd | 1,146.23 | 43.97 |
| Thangamayil Jewellery Ltd | 5,970.23 | 32.47 |
| Kalyan Jewellers India Ltd | 48,394.95 | 15.92 |
| Manappuram Finance Ltd | 17,627.85 | 9.33 |
| Titan Company Ltd | 2,85,903.56 | -17.71 |
| Vaibhav Global Ltd | 3,779.98 | -45.68 |
| Rajesh Exports Ltd | 4,868.25 | -49.87 |
In-Depth Overview of the Best Gold Stocks in India
Investing in gold stocks in India offers a great way to benefit from the gold market’s growth without owning physical gold. Below, we provide a brief overview of the top gold stocks, covering their market presence, performance, and key highlights to help you make informed investment decisions.
1. Goldiam International Ltd
Founded in 1986, Goldiam International Ltd is a well-established player in the gold and diamond jewelry industry, specializing in manufacturing and exporting jewelry to global retailers. The company has made a significant shift towards Lab-Grown Diamonds (LGD), aligning with modern market trends and sustainability demands. With an omnichannel sales strategy, Goldiam caters to major international markets, including the USA, UK, Russia, Dubai, China, Hong Kong, and Australia, with the US contributing 95% of its total revenue.
Goldiam has also entered the retail space with its ORIGEM store, reinforcing its brand presence in India. Its backward integration strategy ensures complete control over its supply chain, from growing and cutting diamonds to manufacturing and distribution. With a robust order book of ₹270 Cr and increasing focus on online sales, the company is set for significant expansion in the coming years.
Key Growth Metrics
| Metric | 10 Years | 5 Years | 3 Years | TTM / Last Year |
|---|---|---|---|---|
| Compounded Sales Growth | 7% | 7% | 14% | 24% |
| Compounded Profit Growth | 20% | 15% | 21% | 25% |
| Stock Price CAGR | 56% | 89% | 34% | 123% |
| Return on Equity (ROE) | 13% | 15% | 17% | 15% |
2. Muthoot Finance Ltd
Muthoot Finance Ltd (MFL) is India’s largest gold financing company, with a strong presence across 4,800+ branches in 29 states and union territories. It primarily offers gold loans but has diversified into money transfer services, business loans, corporate loans, and loans against property. The company holds 202 tons of gold jewelry as security and serves over 2 lakh customers daily.
Additionally, Muthoot Finance has expanded its reach through subsidiaries such as Muthoot Homefin for affordable housing finance, Belstar Microfinance for microfinance solutions, Muthoot Insurance Brokers for insurance distribution, Asia Asset Finance in Sri Lanka, and Muthoot Money Ltd for additional gold loan services. The company has launched new products like personal loans and loan against property, with a focus on digital transformation through mobile apps, AI-powered chatbots, and partnerships with Google Pay and PhonePe. Muthoot Finance aims to increase the share of non-gold loan subsidiaries to 18%-20% by FY29.
Stock Performance
| Metric | Value |
|---|---|
| Market Cap | ₹91,052 Cr |
| Current Price | ₹2,268 |
| High / Low | ₹2,335 / ₹1,321 |
| Stock P/E | 19.2 |
| Book Value | ₹673 |
| Dividend Yield | 1.05% |
| ROCE | 13.2% |
| ROE | 17.9% |
| Face Value | ₹10.0 |
Growth Metrics
| Metric | 10 Years | 5 Years | 3 Years | TTM (Trailing Twelve Months) |
|---|---|---|---|---|
| Compounded Sales Growth | 10% | 13% | 6% | 30% |
| Compounded Profit Growth | 18% | 15% | 3% | 22% |
| Stock Price CAGR | 27% | 30% | 18% | 64% |
| Return on Equity (ROE) | 21% | 22% | 19% | 18% |
3. Tribhovandas Bhimji Zaveri Ltd
Incorporated in 2007, Tribhovandas Bhimji Zaveri Ltd (TBZ) is a 150-year-old Indian jewellery retailer specializing in gold, diamond, silver, platinum, and precious stone ornaments. TBZ was the first to introduce 100% BIS hallmarked 22-karat gold jewellery, certified solitaire diamonds, and a lifetime buyback scheme. The company pioneered lightweight jewellery designs and offers handcrafted gold, diamond, jadau, and platinum jewellery for various occasions, including daily wear.
Product Portfolio: The company offers rings, earrings, necklaces, mangalsutras, pendants, bangles, bracelets, and coins in various styles, including plain gold, diamond-studded platinum, solitaires, and precious/semi-precious stone-embedded designs.
Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | ₹1,099 Cr |
| Current Price | ₹165 |
| High / Low | ₹360 / ₹93 |
| Stock P/E | 15.3 |
| Book Value | ₹92.6 |
| Dividend Yield | 1.04% |
| ROCE | 10.9% |
| ROE | 9.33% |
| Face Value | ₹10.0 |
Growth Metrics
| Growth Metric | 10 Years | 5 Years | 3 Years | TTM |
|---|---|---|---|---|
| Compounded Sales Growth | 2% | 5% | 20% | 15% |
| Compounded Profit Growth | 0% | 28% | 8% | 34% |
| Stock Price CAGR | 1% | 51% | 31% | 58% |
| Return on Equity (ROE) | 4% | 7% | 7% | 9% |
4. Thangamayil Jewellery Ltd
Thangamayil Jewellery Limited (TMJL) operates a chain of retail jewellery stores across Tamil Nadu, a state that accounts for 40% of India’s total gold consumption. The company primarily deals in gold, silver, diamonds, and platinum, with gold jewellery contributing 75% of its revenue. TMJL has four in-house manufacturing units, where skilled goldsmiths craft designer jewellery in line with market trends. The company maintains a strong presence in tier-II and tier-III cities, with 58 stores as of FY24, and holds a dominant market position in Madurai.
To enhance operational efficiency, TMJL utilizes its manufacturing facilities at around 75% capacity, leading to reduced production costs through economies of scale. The company follows a robust hedging mechanism, increasing its gold inventory hedging from 76% in FY23 to 89% in FY24, minimizing the impact of price volatility. Additionally, it has adopted stock rotation strategies, monitoring slow and non-moving inventory, resulting in an improved gold ornaments turnover ratio of 3.52 times in FY24.
Looking ahead, TMJL plans to expand further within Tamil Nadu by opening nine new retail outlets in FY25, including a flagship store in Chennai, with an estimated capital expenditure of ₹40 crore. The company also aims to increase the high-value product mix by 2%-10% of overall sales, improve stock turnover to 3.75 times, and expand its customer base by 10%, which currently stands at 32.5 lakh customers.
Growth Performance
| Metric | 10 Years | 5 Years | 3 Years | TTM / Last Year |
|---|---|---|---|---|
| Compounded Sales Growth | 12% | 22% | 28% | 25% |
| Compounded Profit Growth | 28% | 32% | 12% | -8% |
| Stock Price CAGR | 34% | 64% | 46% | 56% |
| Return on Equity (ROE) | 18% | 24% | 22% | 28% |
5. Kalyan Jewellers India Ltd
Kalyan Jewellers India Ltd. is one of India’s largest jewellery retailers, holding a 6% market share in the organized sector. The company operates with a hyperlocal business model, sourcing jewellery from local artisans. It has expanded rapidly, with 204 Kalyan showrooms in India, 36 in the Middle East, and 13 Candere stores as of FY24. Its product mix consists of 73% gold jewellery and 25% studded jewellery under brands like Mahurat, Mudhra, and Candere.
Financially, Kalyan Jewellers saw a 46% revenue growth between FY22 and FY24, driven by new stores and higher same-store sales. It is shifting to a Franchisee Owned Company Operated (FOCO) model to optimize margins and currently operates 89 FOCO Kalyan and 16 FOCO Candere showrooms. The company plans to add 80 Kalyan, 50 Candere, and 6 overseas stores in FY25 while targeting metro and Tier 1-3 cities.
Kalyan is aggressively reducing debt, repaying ₹434 crore in non-GML loans in FY24, with a goal to reduce another ₹300-350 crore by March 2025.
Growth Performance
| Metric | 5 Years | 3 Years | TTM / Last Year |
|---|---|---|---|
| Sales Growth | 14% | 29% | 35% |
| Profit Growth | 176% | 367% | 21% |
| Stock Price CAGR | - | 92% | 16% |
| ROE | 10% | 12% | 15% |
Gold Companies in India Witness Strong Growth
Gold companies in India have consistently increased in value, with most recording double-digit gains. This growth is driven by key factors such as domestic demand, currency exchange rates, and government policies. As a result, major gold companies like Kalyan Jewellers, Rajesh Exports, and Goldiam International Ltd. have reported strong profits this quarter. Currently, the price of gold stands at Rs. 89,560 per 10 grams.
However, the sector has seen a mixed performance. While PC Jewellers and Uday Jewellers Industry have experienced notable growth in the past month, others like Senco Ltd. and Narbada Gems and Jewellery Ltd. have struggled to make a substantial impact.
Key Features of Leading Gold Stocks
1. Correlation with Gold Prices
Top gold stocks move in line with gold prices, allowing investors to benefit from increasing gold demand and value.
2. Global Market Exposure
Many top gold companies operate internationally, reducing regional risks and ensuring consistent growth.
3. Attractive Dividend Yields
Leading gold companies often offer strong dividend payouts, making them appealing for investors seeking steady income along with capital appreciation.
4. Low Correlation with Equity Markets
Gold stocks generally do not follow traditional stock market trends, making them an effective hedge against market volatility.
5. Stability During Economic Downturns
Since gold is considered a safe-haven asset, gold stocks tend to perform well during economic uncertainty or recessions.
6. Cost-Effective Alternative to Physical Gold
Investing in gold stocks provides exposure to gold without the hassle of buying and storing physical gold, making it a convenient investment option.
Ways to Invest in Gold Stocks in India
Investors can gain exposure to gold through multiple avenues:
1. Gold ETFs (Exchange-Traded Funds)
Gold ETFs track gold prices and allow investors to buy and sell shares like regular stocks. They invest in physical gold or gold futures, providing an easy and liquid way to invest.
2. Gold Mutual Funds
Gold mutual funds invest in gold mining companies and are impacted by both market conditions and company performance. These funds indirectly track gold prices while offering diversified exposure.
3. Gold Mining Stocks
Investing in gold mining companies is another option, as their performance is influenced by both gold prices and their operational efficiency.
With multiple investment options and strong market performance, gold stocks remain a valuable asset class for investors looking for growth, stability, and inflation protection.
Conclusion
Investing in gold stocks in India offers a lucrative opportunity for growth, stability, and diversification. Leading companies like Kalyan Jewellers, Rajesh Exports, and Goldiam International Ltd. have shown strong performance, while options like Gold ETFs, mutual funds, and mining stocks provide various ways to gain exposure. With gold acting as a hedge against inflation and economic uncertainty, investors can benefit from its rising value. However, market conditions and company-specific risks should be considered before investing.