Best Gold Stocks in India to Buy in 2024

India has always cherished the cultural significance of gold, a tradition dating back to historical eras. This deep-rooted sentiment has contributed to the gradual development of a gold-based financial market. Gold is pivotal in India, serving as a hedge against inflation and loan collateral. As the fifth-largest importer of gold, India's demand continues to rise, supported by one of the world's largest gold reserves.

Recent advancements in the digital sector have revolutionized gold investment. Gold can now be purchased digitally through Sovereign Gold Bonds (SGBs), Gold-backed Exchange Traded Funds (ETFs), and more. Additionally, investing in Gold company stocks related to mining, refining, and selling gold and jewellery offers a lucrative avenue. These gold-related stocks are aligned with gold prices, indirectly benefiting from the industry's profitability. In this article, we shall cover the 6 best gold stocks in India that are leading in the industry based on their market capitalization. So let’s get started!

List of Best Gold Stocks in India

Note: This ranking is based on market capitalization as of July 15, 2024. It is recommended to conduct a detailed analysis before investing, as market capitalizations can change daily.

Best Gold Stocks in India 2024 - Overview

1. Titan Company Ltd:

Titan Company Ltd is one of India's leading and most respected lifestyle companies. It was founded in the year 1984, as a joint venture between TATA Group and Tamilnadu Industrial Development.

The company has become the market leader with a 7% market share in the Jewellery segment which contributes to 88% of its revenue in FY24. Furthermore, its product segments are diversified into watches, and wearables which generate 8% of the revenue, the Eyecare business contributes 2% to its revenue, and the other 2% from emerging businesses. 

Further looking into the Jewellery segment Titan operates 472 stores under the ‘Tanishq’ brand, 274 stores under the ‘Caratlane’ brand, 192 stores under the brand ‘Mia’, and additionally 11 stores under its luxury brand ‘Zoya’.

During FY24, the company reported a revenue of Rs. 51,084 crores of which it retained a net profit of Rs. 3496 Crores. Based on the FY24 performance the company has generated a 5-year CAGR of 21% and 20% in its sales and profits, respectively.

2. Kalyan Jewellers

Kalyan Jewellers India Ltd. designs, manufactures, and sells a range of gold, studded, and other jewellery products across various price points. It is one of the largest jewellery retailers in India owning a 6% market share as of FY24. 

The company has 13 procurement centres based in India, through which the company supplies to the 5 countries where it's operating. Furthermore, the company owns more than 217 stores across pan India and 36 showrooms in the Middle Eastern countries. 

It is currently focusing on expanding its business to a customer-centric approach and has opened 1006 “My Kalyan” centres to enrich the customer database and build relationships with customers through various gold-related schemes.

The company has generated a Sales revenue of Rs. 18,548 crores and a Net profit of Rs. 596 Crores in FY 24. Based on its FY 24 performance, the company has generated a 5-year CAGR of 14% in Sales revenue, and 176% in its company profits, respectively.

3. Senco Gold Ltd.

Senco Gold Limited is a jewellery retailer that has branches all over India. Incorporated in 1994. It is the largest organized jewellery retail player in the Eastern region of India based on the number of stores. The company primarily sells gold, diamond, and silver jewellery and other precious stones.

This company has 159 retail stores across 16 states in India, out of which 63% is based only in West Bengal. It focuses on providing a customer experience through physical experience, and other online channels like websites, mobile apps, and e-commerce platforms

During FY24, the company reported a Sales revenue of Rs. 5,230 and a  Net profit of Rs.189 Crores which gives it a 5-year CAGR of 16% and 20% on its revenue and profit, respectively. 

4. Vaibhav Global 

Vaibhav Global Limited has created a niche in the global retail space, through its distinctive business model, especially in the jewellery, accessories, and lifestyle products segment. Jewellery manufacturing covers 7 different metals namely Silver, Gold, Platinum, Steel, Brass, Copper, Bronze. The company was incorporated in the year 1980 and listed in 1997.   

Its manufacturing units are set up in India and China. The company sells its products under jewellery brands including Rhapsody, Iliana, Luxoro, Bali Legacy, Lustro Stella, Karis, and more. It mainly focused on exporting gold and jewellery to three of the largest economies in the world i.e. The United Kingdom, The United States of America, and Germany.

The company has reported a Sales revenue of Rs. 3,041 and a  Net profit of Rs. 127 Crores in FY 24 which brings its 5-year CAGR to 11% and -3% on its revenue and profits, respectively. 

5. Thangamayil Jewellery Ltd.

Thangamayil Jewellery Limited (TMJL) is one leading retail jewellery company particularly known for its operations in Tamil Nadu. The company was incorporated in the year 2000 and listed in the year 2007. The company primarily deals with four product lines, i.e., Gold, Silver, Diamonds, and Platinum; the sale of gold being a predominant source of its income.

It has 54 stores established all over the state mainly focusing on the Tier II and Tier III cities by conducting their key operations in the city of Madurai. Thangamayil has several shareholders including mutual funds like SBI Magnum Children’s benefit fund, SBI Conservative hybrid fund, SBI small cap fund, and DSP small cap fund in its fold.

The company has reported a Sales revenue of Rs. 3,827 and a Net profit of Rs. 123 Crores in FY-24. On the basis of the FY24 results, the company has given a 5-year CAGR of 22% and 32% on its revenue and profits, respectively.

6. Sky Gold Ltd.

Sky Gold Ltd. started its way into manufacturing and sales of Gold Jewellery since the year 2005. This company is based in Navi Mumbai and mainly conducts activities in the exports of gold in global markets. They provide an extensive range of designs and also use studded American diamonds and coloured stones in many of their jewellery products.  

It has over 2000 retail stores across India and 500+ outlets globally. Furthermore, their client base consists of reputed brands including Malabar Gold, Joyalukkas, Senco, Khazana Jewellers, Khimji, Kalyan Jewellers, GRT, and Istaara.

The company reported a Sales revenue of Rs. 1,745 and a Net profit of Rs. 40 Crores in FY 24. During the year, the company’s 5-year CAGR stood at  17% and 68% on its revenue and profits, respectively. 

You can also start investing in these company directly from Rupeezy’s website or mobile application and do a detailed analysis and overview of the stock before investing

Factors to be considered before Investing in Gold Stocks in India

Now that we have discussed the company overview, let’s check out the things to consider before investing in the best gold stocks in India.

Company Performance

Before investing in any of the stocks it is necessary to conduct a background check of the company’s overall performance in the past years.

Stock Prices

You should check out the stock's previous prices and understand whether the stock is overvalued/undervalued at the time of investing.

Gold Prices

Prices in the market continuously fluctuate and without a proper understanding of these prices can affect your investments adversely. The price of gold can be affected due to various global economic conditions, which can affect the future performances of gold stocks and their returns.

Geographical presence

You can check for the company’s location and outlets where they operate, and asses the future potential of the stock. Increasing their number of outlets in different locations can help them gain more market access improve sales and attract more customers thereby earning higher returns.

Global Factors

You must identify the macroeconomic factors like inflation, interest rate fluctuations, and wars that can affect the overall gold prices and inversely affect the gold-related stocks, thereby making an informed investment decision.

How to Invest in Gold Stocks in India?

Follow these steps to invest in the best gold stocks in India:

• Research and find out the top-performing gold stocks in the market.

• Evaluate and assess your risk appetite and fix your financial goals.

• Determine the investment approach; either invest in gold-related stocks or gold-backed mutual funds.

• Shortlist the stocks based on your fundamental and technical analysis.

• Open Demat account and trading account through a trusted stockbroker.

• Invest in the shortlisted stocks and monitor them regularly.

Conclusion

Investing in gold stocks offers a promising opportunity to tap into India's deep-rooted affinity for gold, leveraging the financial growth of companies entrenched in the gold industry. Titan Company Ltd., Kalyan Jewellers, Senco Gold Ltd., Thangamayil Jewellery Ltd., and Sky Gold Ltd. each present unique strengths, from robust market capitalizations and impressive growth rates to extensive market reach and innovative business strategies. 

Gold is a haven for safe and good returns for the long term however, investors should conduct a thorough analysis and consider market volatility and individual financial goals before making investment decisions. 

It is to be noted that these stocks are not recommendations to buy/sell, it is solely ranked based on market capitalizations and they are subject to various risks. So it is necessary to do your research before investing so that you can make more informed decisions.