Best Gold Stocks For March 2025: Sky Gold, KDDL and More Based on 5Y CAGR

Gold has long been considered a safe haven for investors, especially during times of economic uncertainty. While owning physical gold can be an attractive option, investing in gold stocks offers a unique set of advantages and opportunities. In this blog, we will explore the best gold stocks in India based on 5Y CAGR

Best Gold Stocks in India – Based on ROE

Note: The stocks have been selected based on market cap of over ₹3,000 Crore and sorted based on 5Y CAGRas of February 27, 2024

Overview of Best Gold Stocks in India

1. Sky Gold Ltd

Sky Gold Limited is involved in the designing, manufacturing, and marketing of gold jewellery. The co. follows a B2B model where the products are mainly sold to mid-range jewellers and boutique stores. During Q3FY25, the company successfully onboarded Aditya Birla Novel Jewels’ Indriya, marking a significant milestone and reflecting its capability to cater to large-scale, premium projects. Sky Gold is actively expanding its distribution network in the Singapore market to further boost its export revenue

Key Metrics:

• ROE: 23.2%
• ROCE: 18.6%

2. Goldiam International Ltd

Goldiam International Ltd is involved in the manufacturing and exporting of gold and diamond jewellery to global retailers. The company’s lab-grown diamond jewellery share in Q3 FY25 export revenue was 80% visà-vis 58% in Q3FY24. As of December 31, 2024, the order book size was ₹1,750 million and it is expected to be executed in the next 3-4 months.

Key Metrics:

• ROE: 14.9%
• ROCE: 19.8%

3. KDDL Ltd

KDDL manufactures watch components like dials, hands and precision engineering goods under the brand name, Eigen. During Q3FY25, the Bracelet division has shown encouraging performance and is expected to improve further. In addition, the precision engineering revenue accounted for 40% in Q3FY25 and 38% in 9MFY25.

Key Metrics:

• ROE: 17.2%
• ROCE: 18.6%

4. Thangamayil Jewellery Limited

Thangamayil Jewellery Limited operates a chain of retail jewellery stores across several districts in Tamil Nadu, a state that has the largest share (40%) of India’s total gold consumption. During FY24, the company reported a record turnover of ₹3,82,678 lakhs with an all-time high EBITDA profit of well over ₹21,777 lakhs.

Key Metrics:

• ROE: 17.2%
• ROCE: 18.6%

5. PC Jeweller Limited

PC Jeweller is engaged in the business of manufacturing, sale and trading of gold jewellery, diamond-studded jewellery and silver items and operates in different geographical areas.

Key Metrics:

• ROE: -19%
• ROCE: -1.74%

Gold Demand in India

Total gold demand, including OTC investment, increased by 1% year-on-year in Q4, setting a new quarterly record and contributing to a historic annual total of 4,974t. Annual investment reached a four-year peak of 1,180t, marking a 25% increase. Gold ETFs played a major role, as 2024 was the first year since 2020 where holdings remained mostly stable, a stark contrast to the significant outflows seen in the previous three years. Gold jewellery consumption saw a notable decline, falling 11% year-on-year to 1,877t, as consumers could only afford smaller quantities. However, spending on gold jewellery rose by 9%, reaching US$144bn.

Conclusion

Investing in gold stocks can offer a strategic way to gain exposure to the precious metals market while benefiting from the potential growth of mining companies. While gold itself is often seen as a safe haven during economic uncertainty, gold stocks can provide the added advantage of leveraging operational efficiencies and growth potential.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.