Best Jewellery Stocks in India

15 April 2024
8 min read
Best Jewellery Stocks in India
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(The stocks mentioned in the blog are as per Analyst Ratings and Market Capitalization)

Diamonds and jewellery have long symbolised power, success and prestige, particularly for Indian women, providing not only social status but also economic security. Their importance cannot be overstated.

The gems and jewellery industry is one of the oldest and most vital sectors, playing a significant role in both the nation's economy and international trade. With its renowned expertise in jewellery craftsmanship, India has risen as a global centre for manufacturing, processing and exporting gems and jewellery.

Diamond and Jewellery Industry in India - A Brief Overview

The gems and jewellery sector plays a big role in India's economy, making up about 7% of the country's GDP and 15% of its total exports. It also provides jobs for over 4.64 million people. The government sees this sector as crucial for boosting exports and has taken various steps to encourage investment, improve technology and enhance skills to promote Indian brands internationally.

India is a major player in diamond cutting and polishing. The government has supported the industry with favourable policies. According to the Gems and Jewellery Export Promotion Council (GJEPC), India exports about 75% of the world's polished diamonds, contributing significantly to the country's foreign exchange earnings.

The Indian government allows 100% Foreign Direct Investment (FDI) in the sector, making it attractive for foreign investors. Recently, India signed a Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE) in March 2022. This agreement will allow duty-free access to the UAE market for Indian gems and jewellery, aiming to triple exports to the UAE. The industry is expected to grow steadily at a compound annual growth rate (CAGR) of 5.24% from 2023 to 2033.

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Best Diamond and Jewellery Stocks in India 2024 as per Analyst Ratings

The below table mentions the best diamond and jewellery stocks in India as per analyst ratings provided by the I/B/E/S databases. We have selected these ratings as a criterion since stock analysts run a complete market analysis before rating a stock-

S.No.

Diamond and Jewellery Stocks in India (as per analyst ratings)

BUY Analyst Rating (in %)

1.

Kalyan Jewellers India

83

2.

Titan Company

65

*Our stock selection criteria for top stocks based on analyst ratings are mentioned at the bottom of this blog.

Top Diamond and Jewellery Stocks in India in 2024 as per Market Capitalisation

Here is a table outlining the top jewellery stocks in India as per market capitalisation: 

S.No.

Diamond and Jewellery Stocks in India (as per market capitalisation)

1.

Titan Company

2.

Kalyan Jewellers India

3.

Rajesh Exports

4.

Senco Gold

5.

Thanga Mayil Jewellery

*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog.

Overview of Best Diamond and Jewellery Stocks as per Analyst Ratings and Market Capitalisation

Here is an overview of diamond & jewellery sector stocks in India as per analyst ratings and market capitalisation:

1) Kalyan Jewellers India

Founded in 1993, Kalyan Jewellers India Limited is an Indian jewellery retailer that sells various jewellery products like diamonds, gemstones, pearls, platinum and gold. It provides a wide range of rings, chains, necklaces, earrings, bangles, bracelets and more. Anokhi, Mudhra, Laya, Glo, Vedha, Apoorva, Candere, Hera and Rang are some of the popular brands that collaborate with Kalyan Jewellers India. 

Furthermore, the company also offers services like jewellery purchase schemes, gold insurance, etc. With around 150 stores in India and the Middle East, it also provides tips and education on buying gold. Kalyan Jewellers’ subsidiaries include Kalyan Jewellers LLC and Kalyan Jewellers FZE.

2) Titan Company

Titan Company was established as a joint venture of the Tamil Nadu Industrial Development Corporation (TIDCO) and the Tata Group. The company is engaged in manufacturing and selling different types of lifestyle products and accessories like jewellery, watches, eyewear and more.

Its jewellery segment brands include Mia, Tanishq, CartLane and Zoya. The watches and wearable segment brands include Fastrack, Sonata, Zoop, Octane, Helios, Nebula, Xylys and more. 

Titan Company also provides products in other segments like fragrances, Indian dress wear, accessories, defence, aerospace and more. The company’s subsidiaries include Titan Commodity Trading Limited, Favre Leuba AG, Titan Engineering & Automation Limited, CaratLane Trading Private Limited, TCL North America Inc. and others. It has expanded its network with more than 2,000 stores. 

3) Rajesh Exports

Headquartered in Bangalore, Rajesh Exports Limited (REl) is one of the global leaders in the gold business. It was incorporated in 1989 with the objective to produce and export different gold and gold-related products.

The company’s manufacturing plants produce handmade jewellery, studded jewellery, tube jewellery, casting jewellery, electro-formed jewellery, stamped jewellery and machine chains. REL has over 29,000 jewellery designs. 

Rajesh Exports Limited's infrastructure includes refining and alloying, manufacturing, exports, wholesale, retail and R&D. Furthermore, the company also manufactures and sells gold bars via its Valcambi facility. It is also present in the United Arab Emirates (UAE) and Switzerland. 

4) Senco Gold

Senco Gold Limited is an Indian jewellery retailer incorporated in 1994 that specialises in selling gold and diamond jewellery, along with silver, platinum and jewellery made from precious and semi-precious stones. One of the brands of the company includes Senco Gold and Diamonds.

The company offers products under the name of different collections, including Romantique Collection, Hermosa Collection, Perfect Love Solitaires, Kids Special, Milon Collection, Wedding Collection, Retro Classics, Sutra Collection, Men's Jewellery and more. 

With a collection of around 1,08,000 gold jewellery designs and over 46,000 diamond jewellery designs, it also provides various handcrafted jewellery options. Senco Gold Limited sells its products under the name Senco Gold & Diamonds through a network of approximately 70 company-operated showrooms and 57 franchisee showrooms.

5) Thanga Mayil Jewellery

Thanga Mayil Jewellery Limited, a top jewellery retailer in Tamil Nadu, sells diamond, gold jewellery and platinum pieces. It offers a wide range of ornaments like gold chains, waist belts, bangles, ear studs, nose rings, finger rings, necklaces, kasu malai, bracelets and more, catering to various customer preferences. Additionally, the company also crafts custom-made ornaments to meet specific requests, manufactured at their unit near Madurai. 

Furthermore, it sources ready-made gold jewels from dealers in Gujarat, Andhra Pradesh, West Bengal, and Kerala to match market trends. Thanga Mayil Jewellery Limited pioneered Hallmarking in Madurai and conducted awareness campaigns to educate customers about its importance. 

Factors to Consider Before Investing in Diamond and Jewellery Stocks in India

The following are some crucial factors you need to consider before buying top jewellery stocks in India:

  • Regulatory Environment

You must understand various industry-related regulations associated with manufacturing and mining can affect the operational costs of the jewellery-making segment.

Changes in these regulations can impact the financial performance and stock prices of diamond and jewellery companies.

  • Price Fluctuations

The prices of gold, silver and diamonds are subject to fluctuations due to various factors like changes in economic conditions, consumer preferences and more. Therefore, you should keep track of these factors to decide when to buy or sell these stocks.

  • Company‚Äôs Health

Examine the company’s financial health by checking its revenue growth, debt levels, profitability and more. You should invest in companies with strong brand recognition and a positive reputation. 

  • Constraints in Supply

Various factors like product disruption, decline in diamond mines, and political instability influence the diamond and jewellery market. This ultimately can lead to disruption in the supply chain management. 

Should You Invest in Diamond and Jewellery Stocks?

If you are considering investing in diamond and jewellery stocks, it is important to be aware of the challenges and risks associated with the industry.

The diamond and jewellery sector faces hurdles such as staying abreast of fashion trends, managing complex supply chains, and continuously innovating designs to remain competitive. Moreover, the industry is sensitive to economic fluctuations, which can impact consumer spending on luxury items like jewellery. 

Additionally, dependency on precious metals and gemstones exposes the industry to commodity price risks, while concerns about counterfeiting and growing environmental awareness add further complexities. Before making investment decisions, carefully evaluate these factors and consider the financial health and prospects of diamond and jewellery stocks.

The Bottom Line 

If you are looking for long-term growth opportunities in India, investing in jewellery stocks in India can be a good choice, but remember, it comes with risks, too. Thus, conducting thorough research and seeking guidance from a financial advisor before making any investment decisions is crucial. It ensures that you make informed choices aligned with your financial goals and risk tolerance.

*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.

*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.).

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Aakash Baid

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd) Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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