Last Updated on Nov 5, 2024 by Vanessa Sequeira
Gold has always been a cherished asset in India, symbolising wealth and financial security. Traditionally, gold investments were limited to physical forms such as jewellery and bullion. However, with the advent of modern financial instruments, investors now have the option to invest in gold stocks, providing a unique avenue to benefit from the precious metal’s market performance. This article explores the best gold stocks in India, detailing how to invest in them, the benefits and risks involved, and the factors to consider before making an investment.
Table of Contents
Best Gold Stocks in India in 2024
Here is a gold stocks list in India based on their fundamental scores:
| Name | Market Cap (in Cr.) | Close Price (Rs.) | PE Ratio | 1Y Return (%) | Net Profit Margin (%) | Fundamental Score |
| Goldiam International Ltd | 3,780.76 | 358.60 | 41.63 | 179.17 | 14.72 | 9.37 |
| Thangamayil Jewellery Ltd | 6,269.12 | 2,292.25 | 50.87 | 78.04 | 3.22 | 8.70 |
| Tribhovandas Bhimji Zaveri Ltd | 1,796.32 | 270.90 | 33.01 | 128.90 | 2.35 | 6.58 |
| PC Jeweller Ltd | 7,809.43 | 157.15 | -12.41 | 427.35 | -93.95 | 6.30 |
| Rajesh Exports Ltd | 7,607.13 | 262.05 | 22.67 | -40.28 | 0.12 | 4.37 |
| Titan Company Ltd | 2,89,736.63 | 3,293.70 | 82.88 | 3.79 | 6.77 | 3.55 |
| Kanani Industries Ltd | 57.17 | 2.91 | 93.72 | -22.91 | 0.27 | 2.24 |
| KDDL Ltd | 3,190.82 | 2,649.45 | 31.08 | 14.62 | 7.23 | 2.21 |
| Kalyan Jewellers India Ltd | 67,752.12 | 670.80 | 113.42 | 125.59 | 3.21 | 1.61 |
| D P Abhushan Ltd | 4,014.34 | 1,795.55 | 64.89 | 195.27 | 2.64 |
Note: The data on this gold stocks list is noted on 4th November 2024. The list of best gold stocks in India are filtered on the basis of their Fundamental Score (high to low) on the Tickertape Stock Screener.
- Sector: Precious Metals, Jewellery & Watches
🚀 Pro Tip: Use Tickertape’s Portfolio Analysis to assess your investment portfolio’s diversification and performance.
A Brief on the Filters Used To Discover the Best Highest Dividend-Paying Stocks in India
Fundamental Score: It is a smallcase proprietary score between 1 and 10 which is assigned to stocks listed on NSE. The score helps rank the stock versus all other stocks in the respective sector. Higher the score, the better the company. The score is calculated taking into consideration factors like valuation, profitability, market share growth, financial health and earnings growth of the company.
How to Invest in Stocks with smallcase?
Find out how you can easily invest in electric vehicle stocks through professionally managed portfolios on smallcase.
But first, let’s explain what smallcase is all about.
smallcases are modern investment products that help investors build low-cost, long-term & diversified portfolios with ease. A smallcase is a basket or portfolio of stocks/ETFs representing an idea – an objective, theme, or strategy. They are created and managed by SEBI-registered experts.
Among 500+ smallcases, here’s the top smallcases you can check out:
Note: These smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.
- Disclosure for Equity & Gold
- Disclosure for Mi EverGreen
Overview of the Best Gold Stocks in India
Here are brief overviews of the best jewellery stocks in India mentioned in the gold sector stocks list above:
Goldiam International Ltd
Known for its expertise in the diamond and jewellery manufacturing industry, Goldiam International Ltd has built a reputation for precision and quality in its offerings. Over the last five years, the gold company in India’s net income has grown at an annual rate of 12.87%, surpassing the industry average of 8.21%. With a prudent approach to financial leverage, Goldiam has maintained a debt-to-equity ratio of just 1.69%, in contrast to the industry’s high average of 60.56%. This makes Goldiam one of the best gold stocks to buy in India for those seeking a dependable gold company with strong financials.
Thangamayil Jewellery Ltd
Thangamayil Jewellery Ltd, a popular jewellery retailer in South India, has demonstrated impressive growth, driven by a loyal customer base and expansive product offerings. Known for catering to diverse customer demands, Thangamayil has become a popular gold stock in India with revenue growth over the past five years at an impressive 21.52% annually, compared to the industry average of 10.25%. Its net income has surged to 32.44%, far exceeding the 8.21% industry average, placing it among the best jewellery stocks in India for growth potential.
Tribhovandas Bhimji Zaveri Ltd (TBZ)
A legacy gold company in India with over a century of experience, TBZ has continued to evolve with the changing dynamics of the jewellery market. Over the last five years, TBZ’s net income has seen substantial growth at 28.45% per annum, compared to the industry’s 8.21% average, reflecting strong operational efficiency. The company’s return on equity (ROE) of 9.37% strengthens its position and is appealing to investors interested in which gold shares to buy in India.
PC Jeweller Ltd
PC Jeweller, a well-established jewellery retailer with a significant presence across India, emphasises modern designs and customer satisfaction. PC Jeweller has earned a place among the best jewellery stocks in India due to its strong liquidity management. Over the last five years, it has maintained a current ratio of 178.05%, comfortably higher than the industry average of 168.81%.
Rajesh Exports Ltd
Rajesh Exports, one of the world’s largest gold refiners and jewellery manufacturers, is a major gold company in India. While the company has shown a mixed performance in recent years, its high expected return of 128.96% from the current price level shows why it’s considered among the best gold stocks to buy in India. This expected return surpasses its three-year compound annual growth rate (CAGR) of -16.06%. Rajesh Exports maintains a conservative debt-to-equity ratio of 7.4%, well below the industry’s 60.56% average.
Titan Company Ltd
As a market leader in the branded jewellery and watch segments in India, Titan Company Ltd has consistently outperformed its peers. Over the past five years, it has achieved a revenue growth rate of 20.93% annually, more than doubling the industry average of 10.25%. Its net income growth rate of 20.01%, compared to the industry’s 8.21%, reflects Titan’s solid business strategies and consumer appeal, making it one of the best jewellery stocks in India and a preferred option for those wondering which gold shares to buy in India.
Kanani Industries Ltd
Specialising in diamond-studded jewellery manufacturing, Kanani Industries Ltd has carved out a niche within the jewellery industry, emerging as a significant gold stock in India. Its prudent financial management is evident in its debt-to-equity ratio of 37.02%, much lower than the industry’s 60.56%, and a high current ratio of 221.67%, well above the industry’s 168.81%. This profile makes Kanani Industries one of the best gold stocks for financially conscious investors to buy in India.
KDDL Ltd
A leading supplier of precision components to the watch industry, KDDL Ltd has shown robust growth over the last five years, with revenue increasing at an annual rate of 17.73%, outpacing the industry average of 10.25%. As a reliable gold company with impressive profitability, KDDL’s net income growth at 35.91% annually compared to the industry’s 8.21% solidifies its position as a desirable gold stock in India.
Kalyan Jewellers India Ltd
Known for its wide product range and strong brand presence, Kalyan Jewellers stands out as a leading gold company in India. With steady revenue growth over the last five years at 13.67% annually, Kalyan Jewellers surpasses the industry average of 10.25%. Its expected revenue growth of 32.17% next year, exceeding its three-year CAGR of 29.28%, makes Kalyan Jewellers a promising gold stock in India.
D P Abhushan Ltd
Primarily catering to the North Indian market, D P Abhushan Ltd has expanded its revenue and profit base rapidly. Over the last five years, revenue has grown at a substantial 23.57% annually, more than double the industry’s 10.25% average. Its net income growth soaring at 39.31%, compared to the industry average of 8.21%, showcases its efficiency and is ideal for investors looking for high-growth gold stocks in India.
What are Gold Stocks?
Gold stocks refer to shares of companies involved in the mining, refining, and marketing of gold. These companies’ performance is closely tied to the price of gold. Investing in gold stocks allows investors to gain exposure to the gold market without owning physical gold. This method provides a diversified investment option within the precious metals sector and can include shares of gold mining companies, gold-related stocks, and firms involved in gold production.
How to Invest in Gold Stocks in India?
Investing in gold stocks in India is relatively straightforward and can be done through the stock market. Here are the steps to get started:
- Open a Demat Account: To trade gold stocks, a Demat account with a brokerage firm is required.
- Research Gold Companies: Evaluating the financial health, historical performance, and market position of the gold mining companies in India may help in making informed decisions.
- Select Gold Stocks: Based on research, investors can choose from a list of gold stocks in India.
- Place an Order: Orders can be placed through the trading platform to buy gold mining stocks in India from the selected gold companies.
Digital Gold Investment
Apart from traditional gold stocks, digital gold is an emerging investment option. Digital gold allows for the purchase of gold online without the need for physical storage. This investment is secure and can be easily liquidated.
Benefits of Investing in Gold Stocks in India
Investing in gold stocks in India offers several advantages:
- Liquidity: Gold stocks can be easily bought and sold on the stock market, providing liquidity.
- Diversification: Adding gold stocks to a portfolio can diversify investments, potentially reducing overall risk.
- Potential for High Returns: Gold stocks may offer substantial returns, especially during periods of rising gold prices.
- Inflation Hedge: Gold is often considered a hedge against inflation, maintaining its value when other investments falter.
Risks of Investing in Gold Stocks
Despite the benefits, investing in gold stocks also comes with risks:
- Market Volatility: Even the best gold company in India can be highly volatile, influenced by various factors, including gold prices, market conditions, and company performance.
- Operational Risks: Even the top gold companies in India, including gold company stocks, face operational risks such as production costs, labour issues, and regulatory changes.
- Economic Factors: Global economic conditions, interest rates, and geopolitical events can significantly impact gold stock prices and even the best gold shares to buy.
How to Invest in Digital Gold on Tickertape?
To buy digital gold on Tickertape, follow the below steps –
- Login to Tickertape using a valid mobile number
- Navigate to the Gold section on the home screen
- Click on ‘Invest now in Digital Gold’
- Set your investment amount along with the investment plan – SIP/lump-sum
Here’s a video showcasing how to invest in digital gold on Tickertape – LINK
Factors to Consider Before Investing in Digital Gold
Before investing in digital gold, consider the following factors:
- Storage and Security: Platforms offering digital gold investments may provide secure storage and insurance for your investment.
- Transaction Costs: Be aware of any transaction fees or charges associated with buying and selling digital gold.
- Market Trends: Staying updated with market trends and gold prices might help in making informed investment decisions.
- Platform Reliability: Choosing a reliable and reputable platform for digital gold investments is essential.
Conclusion
Investing in gold stocks in India offers a modern approach to gain exposure to the gold market. Whether through traditional gold stocks or digital gold, investors have various options to diversify their portfolios and potentially reap significant returns. However, it is crucial to conduct thorough research and consider the associated risks before making any investment decisions.
Frequently Asked Questions About Gold Stocks
1. What are gold stocks in India?
Gold stocks in India refer to shares of companies engaged in gold mining, refining, and marketing.
2. How can I invest in gold stocks in India?
Investing in gold stocks can be done by opening a Demat account, researching listed gold companies in India, selecting suitable stocks, and placing an order through a trading platform. You can also buy gold via Tickertape within a few clicks. Explore now!
3. What is digital gold?
Digital gold is a modern way to invest in gold without physically holding it. Here’s how it works:
– Purchase Online: Investors can buy digital gold through online platforms or apps provided by financial institutions and fintech companies.
– Secure Storage: The purchased gold is stored in secured vaults by the provider, ensuring safety and eliminating the need for physical storage.
– Easy Liquidation: Digital gold can be easily sold back to the platform or converted into physical gold if required, offering flexibility and liquidity.
– Fractional Ownership: Investors can buy small fractions of gold, making it accessible to everyone, regardless of the investment amount.
You can invest in digital gold via Tickertape within a few clicks. Explore now!
4. What are the benefits of investing in gold stocks in NSE?
The benefits of investing in gold shares in India include liquidity, diversification, the potential for high returns, and the gold related stocks serving as an inflation hedge.
5. What should I consider before investing in digital gold?
Factors to consider include storage and security, transaction costs, market trends, and platform reliability.
As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.
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