Best Gold Stocks in India
(The stocks mentioned in the blog are as per Analyst Ratings and Market Capitalization)
Indians have a strong attachment towards gold, often considering it as the first choice for weddings or any other type of investment. India stands as the second-largest consumer of gold globally, showcasing the nation's strong cultural connection to this precious metal.
Many investors seeking diversification and a hedge against inflation opt for gold.
Gold Industry in India - A Brief Overview
India's love for gold is deeply rooted in tradition and culture, making it a timeless asset. Despite its diverse culture, gold is universally cherished across the country.
With a mining history spanning over 2,000 years, India boasts abundant mineral resources, including considerable reserves of gold. The gold mining sector in India actively contributes to economic growth, providing employment opportunities and attracting investments, both domestic and foreign.
Globally, India ranks second in the gold market, accounting for approximately 25% of the world's gold demands. The Government of India has taken an initiative named the ‘Make in India in Gold’, boosting efforts to promote domestic manufacturing and production in the gold industry. This initiative aims to enhance the country's capacity to produce gold-related products, encourage exports and stimulate economic growth in the sector.
According to the World Gold Council (WGC), India's demand for gold is expected to increase. The WGC predicts that as consumers adjust to higher prices, the demand for gold will rise throughout the year. Specifically, it is anticipated that India’s gold demand, which has remained between 700 and 800 metric tons for the past 5 years, will escalate to between 800 and 900 tons in 2024.
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Best Gold Stocks in India 2024 as per Analyst Ratings
The following table highlights the best gold stocks in India as per analyst ratings:
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S.No. |
Gold Stocks in India (as per analyst ratings) |
BUY Analyst Rating (in %) |
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1. |
83 |
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2. |
65 |
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3. |
58 |
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*Our stock selection criteria for top stocks based on analyst ratings are mentioned at the bottom of this blog. |
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Top Gold Stocks in India in 2024 as per Market Capitalisation
The following table mentions the top gold stocks as per market capitalisation in India:
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S.No. |
Gold Stocks in India (as per market capitalisation) |
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1. |
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2. |
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3. |
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4. |
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5. |
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*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog. |
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Overview of Best Gold Stocks in India as per Analyst Ratings and Market Capitalisation
Here is a detailed overview of the gold sector stocks in India as per analyst ratings and market capitalisation:
1) Kalyan Jewellers India
Headquartered in Thrissur, Kalyan Jewellers India Limited operates as a jewellery retailer in India, offering a wide range of jewellery products, including gold, diamond, white gold, pearl, gemstone and platinum. Its product lineup consists of providing rings, bracelets, bangles, earrings, chains and necklaces. The company's brands include Mudhra, Rang, Vedha, Anokhi, Apoorva, Tejasvi, Ziah, Laya and Glo.
Kalyan Jeweller has around 150 retail stores located across India and the Middle East. Furthermore, it provides customer service through the 'My Kalyan' hub-and-spoke model outlets, making Kalyan Jewellers easily reachable for households in rural areas.
2) Titan Company
Established in 1984, Titan Company Limited, a member of the TATA Group, stands out as a top Indian gold stock. It primarily engages in manufacturing and selling watches, jewellery, eyewear and other accessories.
The company provides a range of jewellery items including pendants, earrings, rings, chains and necklaces. Titan also offers eyewear products such as reading glasses, frames and sunglasses.
Additionally, it provides franchising, distribution and licensing services. The company sells its products under various brands, including Titan, Sonata, Mia, Titan EyePlus, Taneira, Tanishq, Fastrack, Zoya, Skinn, CaratLane and others. Titan Company has expanded its presence with over 2,000 stores and currently operates 16 different brands.
3) Muthoot Finance
Headquartered in Kerala, Muthoot Finance Limited operates as a gold financing company. It provides an array of financial products, including gold loans, housing finance, personal loans, corporate loans, vehicle loans, general insurance, non-convertible debentures and more.
Its gold loan schemes include the Muthoot One Percent Loan, Muthoot Delight Loan, Muthoot Mudra Loan, Muthoot Advantage Loan, etc.
Moreover, Muthoot Finance offers services such as money transfer, PAN Card services, foreign exchange, leasing and factoring services, travel solutions, and digital and cashless solutions. While its primary operations are in India, Muthoot Finance also has representative offices in the US, the UK, the UAE and Sri Lanka.
4) Rajesh Exports
Incorporated in 1989 and headquartered in Bengaluru, Rajesh Exports Limited (REL) is a company that manufactures and exports gold and gold-related products. It runs manufacturing facilities that produce various types of jewellery, including machine chains, handmade, casting, stamped, tube, studded and electro-formed jewellery.
Additionally, REL manufactures and sells gold bars through its Valcambi vertical. Valcambi, the world's largest gold refinery, can produce 400 tons of small-size gold bars and 500 tons of kilo bars annually.
The company's wholesale department in India and the UAE distributes these products to different jewellery showrooms in the respective markets. REL also operates and manages its chain of retail stores under the brand ‘SHUBH Jewelers’ in Karnataka. With a business presence in India, the UAE and Switzerland, REL caters to customers across these regions.
5) Thangamayil Jewellery
Thangamayil Jewellery Limited primarily manufactures and sells jewellery along with other accessories. The company specialises in gold, silver and diamond articles. Its product line-up includes bracelets, rings, chains, bangles, pendants, earrings, nose pins, coins and more. It encompasses a total operating area of approximately 78,000 square feet, spread across 54 showrooms, with 13 of them being exclusive silver showrooms.
The company's branches are situated in various cities including Sivakasi, Rajapalayam, Madurai and others. Additionally, it has an exclusive showroom for silver located in cities such as Sattur, Tiruppuvanam and Devakottai.
Factors to Consider Before Investing in Gold Stocks in India
Here are some factors you should think about before investing in gold company stocks:
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Company Performance
Before you invest in gold industry stocks, you must check their past financial performance. Look at their financial statements, revenue, profits, market shares, etc. Furthermore, you must remain updated with the current news and announcements related to these companies.
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Regulatory Environment
You must learn the regulations that govern the gold industry in India, including those related to mining, refining, trading and taxes. Be aware of how these regulations may impact the company's operations and profitability.
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Gold Prices
Keep an eye on the prices of gold because it can affect your investment. Gold prices can change because of factors like global economic conditions and forces of supply and demand. You must understand how these factors affect gold rates and the stocks’ potential future returns.
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Macroeconomic Factors
Consider economic factors like inflation, interest rates and currency fluctuations, as these can affect the gold industry and company profits. You must stay informed about how these factors can influence gold prices and the performance of gold-related stocks.
Should You Invest in Gold Stocks?
Investing in the gold stocks comes with its own set of risks, just like any other investment. You should be mindful of potential risks such as market volatility, liquidity issues and geopolitical uncertainties. These factors can impact the performance of gold stocks and affect your investment returns.
Before making any investment decisions, it is essential for you to conduct thorough research and seek guidance from a financial advisor. By doing so, you can make informed choices and mitigate the risks associated with investing in gold stocks.
The Bottom Line
When considering investing in gold stocks, you must evaluate the share prices of different gold companies.
The gold stock market is influenced by various factors and can experience fluctuations. Therefore, you must perform your due diligence before making any investment decisions. Moreover, ensure that any investment in gold stocks aligns with your financial goals and risk tolerance.
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*Stock Selection Criteria for Top Stocks Based on Analyst Rating Investors must carefully read through the following information on stock selection criteria while running through the stocks based on analyst ratings- These stocks have been shortlisted as per Analyst ratings provided by the I/B/E/S (The Institutional Broker’s Estimate System) database, further aggregated by Refinitiv. Ratings are determined by analysts' forecasts of company performance, taking into account metrics like earnings per share, sales, and net income. These ratings should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.). Before investing, investors must conduct independent research and not solely rely on the information provided here. This will allow investors to make appropriate investment decisions based on their financial goals, investment objectives and risk tolerance. |
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*Stock Selection Criteria for Top Stocks Based on Market Capitalisation These stocks are chosen based on their market capitalization, which represents the total value of a company's outstanding shares. The selection is arranged in descending order, placing the largest companies first and the smaller ones later. This helps prioritize stocks based on their market size. It is important to note that market capitalization in no way guarantees a company’s performance or the returns from its stocks. However, it can be used as a criterion for shortlisting companies from within a sector. Investors should recognize that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. This stock selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.). |
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Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory. To read the RA disclaimer, please click here |