Best Jewellery Stocks in India

Jewellery has always held a strong place in Indian society. It is not only valued for its wearability and auspiciousness but is also viewed as an attractive investment option. The gems and jewellery sector in India thrives on this demand and enjoys exceptional popularity.  

Investing in some of the top jewellery stocks in India can potentially enable you to capitalise on the various growth opportunities that this sector has to offer. And with the prices of gold and silver rising consistently, now may be the right time to invest in jewellery stocks.      

An Overview of the Jewellery Industry in India 

Before we look at some of the best jewellery stocks you can consider for investment, here’s a quick glimpse of the gems and jewellery industry. 

The gems and jewellery industry contributes significantly to the Indian economy. Approximately 7% of the country’s Gross Domestic Product (GDP) comes from the industry. In terms of exports, it contributes nearly 15% of the total merchandise. 

In addition to economic contribution, the industry also plays a major role in providing employment. More than 4 million workers are currently employed in various capacities to fulfil the different requirements of the industry. 

Low costs and the availability of a highly skilled labour force are two of the primary advantages of this industry. These two advantages are likely to propel India into becoming the global hub for the jewellery market of the world. 

Furthermore, the Indian government has also implemented various policies and schemes to promote the gems and jewellery sector. This includes the establishment of specialised export zones and providing incentives for skill development and infrastructure development.

Top Jewellery Stocks in India 2024 

Now that we have seen a brief overview of the sector as a whole, let us focus on the top jewellery stocks you can consider investing in.  

1. Titan Company 

A part of the Tata Group of Companies, Titan Company Limited was established in 1984. Although the company started as a manufacturer of watches under the Titan brand, it expanded its business portfolio to include jewellery under the brand Tanishq. 

Other brands under which the company markets its jewellery include Mia and CaratLane. Titan Company is currently the leading manufacturer of branded jewellery in India and enjoys a 6% market share in the domestic jewellery market as of 2022. Here are some of the company’s key financial metrics.

• Return on Equity (ROE): 27.42%
• Earnings Per Share (EPS): ₹36.61
• Book Value Per Share (BVPS): ₹133.75
• Net Profit Margin: 8.00%

2. Kalyan Jewellers India

Established in 1993, Kalyan Jewellers India is a prominent name in the country's gems and jewellery sector, renowned for its exquisite craftsmanship and wide range of offerings. One of the company’s flagship products is Muhurat, which is an exclusive wedding jewellery collection featuring traditional Indian designs from 13 different states in the country.  

Of late, the company has rapidly expanded its presence with physical stores across India and abroad. The wider reach and good customer service make it one of the best jewellery stocks to invest in. In addition to physical stores, Kalyan Jewellers also sells a wide range of gold and other precious metal jewellery online. 

• Return on Equity (ROE): 11.91%
• Earnings Per Share (EPS): ₹4.20
• Book Value Per Share (BVPS): ₹35.28 
• Net Profit Margin: 3.07%

3. Senco Gold 

Incorporated in 1994, Senco Gold is a Kolkata-based jewellery manufacturer specialising in gold, diamond and gemstone jewellery. The company’s primary hub is located in Kolkata, where all of the jewellery is designed and meticulously crafted by highly experienced professionals. 

One of the few companies to adopt the “phy-gital” model, Senco Gold sells an extensive collection of jewellery through both physical stores and online channels. With more than 150 showrooms in over 16 states, Senco Gold is one of the top jewellery stocks in India in terms of its presence. Here’s a quick overview of some of the company’s key financials. 

• Return on Equity (ROE): 17.00%
• Earnings Per Share (EPS): ₹22.87
• Book Value Per Share (BVPS): ₹166.92
• Net Profit Margin: 3.88%
  
   

4. Motisons Jewellers 

Founded in 1998, Motisons Jewellers is a prominent name in India's jewellery landscape. With a diverse range of gold, diamond and gemstone jewellery, the company caters to a wide spectrum of customers and occasions. 

Motisons Jewellers possess a state-of-the-art manufacturing facility in Jaipur. The facility is run by more than 50 highly skilled craftsmen experienced in the art of creating jewellery. The company has four major physical stores in Jaipur and a dedicated online store to cater to domestic demand. The company also exports its extensive range of jewellery to other countries.         

• Return on Equity (ROE): 16.15%
• Earnings Per Share (EPS): ₹3.42
• Book Value Per Share (BVPS): ₹21.15

5. Thangamayil Jewellery

Incorporated in 2000, Thangamayil Jewellery is one of the few jewellery manufacturers in India with a sizable presence in Tier II and Tier III locations of Tamil Nadu. Currently, the total number of stores owned by the company is 58 and are all concentrated within Tamil Nadu. 

Thangamayil Jewellery’s manufacturing unit is located in Madurai and employs experienced goldsmiths who design and craft exquisite traditional Indian jewellery. The company’s flagship store is also located in Madurai and spans almost 12,000 square feet. 

Similar to many other top jewellery companies in India, Thangamayil Jewellery has also introduced digital gold, where users can purchase 24-karat gold digitally and redeem it at any of the company’s stores located in Tamil Nadu.    

• Return on Equity (ROE): 20.50%
• Earnings Per Share (EPS): ₹58.13
• Book Value Per Share (BVPS): ₹283.38

Note: All of the financial metrics are as of May 02, 2024. 

Conclusion

The gems and jewellery industry in India is a dynamic and vibrant sector with strong growth potential. The industry’s deep-rooted cultural significance and contributions to the country's economy and global trade make investing in the top jewellery stocks in India an attractive long-term investment opportunity. 

The Research 360 platform by Motilal Oswal can help simplify your investment process. You can get comprehensive stock-specific fundamental and technical insights including various news and announcements concerning your potential investment options. 

All you need to do is type in the name of the stock on the search bar of the platform to gain access to all of this information and more. Using the insights provided by the platform, you can make informed long-term investment decisions that are in line with your financial goals.