Best Gold Stocks in September 2024 – Based on ROE

India is one of the largest gold markets, and growing affluence is driving growth in demand.  India has a strong cultural affinity for gold, which has led to the development of a thriving gold-based financial system. Rising disposable incomes and technological developments are driving up demand for jewellery, both traditional and modern. A developing trend in the market is lightweight, fusion jewellery that appeals to contemporary tastes. Bridal jewellery accounts for 50-55% of the gold jewellery market. Gold remains a timeless favourite, showcasing India’s enduring appreciation for precious metals and intricate craftsmanship.

Over the past few years, gold prices in India have seen significant fluctuations and increases. In the year 2022, the price of gold was ₹52,670 (24 Karat per gram), which jumped to ₹65,330 in 2023 and has further increased to ₹74,175 in 2024. Despite high gold prices, retail sales remained resilient, especially during the festive season, which was one of the most successful in recent years. This reflects strong consumer confidence. During 2024-2040, the Indian jewellery market is likely to witness a CAGR of 5.7%. In this article, we will look at the best gold stocks in September 2024 – based on ROE.

Best Gold Stocks in India – Based on ROE

Note: The stocks have been selected on the basis of market capitalisation of over 8,000 Crore and  sorted based on ROE as of September 06, 2024

Overview of Best Gold Stocks in India

1. Titan Company Ltd: Founded in 1984 as a joint venture between TATA Group and Tamilnadu Industrial Development Corporation (TIDCO), Titan Company Ltd is one of India’s most respected lifestyle companies. It has established leadership positions in the Watches, Jewellery and Eyewear categories led by its trusted brands and differentiated customer experience. During FY24, the company added 9 new Tanishq and 1 Mia by Tanishq stores, expanding the international jewellery footprint to 17 stores.

Key Metrics:

• Net Margin: 6.77%
• ROCE: 22.7%

2. Senco Gold Limited: Incorporated in 1994, Senco Gold Limited is a Pan-India jewellery retailer and is the largest organised jewellery retail player in the Eastern region of India based on the number of stores. The company operates an active catalogue of 1,56,000+ designs for gold jewellery and 86,000+ designs for diamond jewellery. 

Key Metrics:

• Net Margin: 3.43%
• ROCE: 13.8%

3. Kalyan Jewellers India Ltd: Kalyan Jewellers India Ltd. designs, manufactures, and sells a range of gold, studded and other jewellery products across various price points. Looking forward, the company continues to focus on expanding its presence, leveraging investments already made in the business – well poised to capitalise on attractive industry dynamics.

Key Metrics:

• Net Margin: 3.21%
• ROCE: 14.0%

4. Ethos Ltd: Incorporated in 2007 and promoted by KDDL Limited, Ethos is India’s largest luxury and premium watch retail player. During Q1 FY25, the average selling price has been increased by ₹44K to ₹221K on a YoY basis for Q1FY25. It added 2 brands under exclusive partnerships and opened 3 stores in Q1FY25 and 1 in August’24.

Key Metrics:

• Net Margin: 8.14%
• ROCE: 14.3%

5. Rajesh Exports Ltd: Incorporated in 1989, Rajesh Exports Ltd is a gold refiner, manufacturer and exporter of Gold products. It is the only company in the world with a presence across the entire value chain of Gold, from refining to retailing. The company refines over 35% of the world’s gold. Refineries are located at Balerna in Switzerland and Uttarakhand in India. It has the capacity to refine 2,400 tons of precious metal per annum.

Key Metrics:

• Net Margin: 0.12%
• ROCE: 3.23%

Conclusion

Investing in gold stocks provides protection against market risk, as gold prices tend to increase. However, before investing in gold stocks, you should conduct thorough research.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.