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All that glitters is not gold, this is a saying that we have heard for ages. But when it comes to gold stocks, they are glittering. Gold is considered to be an evergreen commodity and is also widely used as a hedge against uncertain and volatile markets. Currently, the stock markets in general are going up and the gold rate consequently is going down. This can be an excellent time to include quality gold stocks in your portfolio with a long-term view. So let us check out the top gold stocks in terms of market capitalisation and their key details.
The top gold stocks in Indian stock markets and their core details are tabled below.
Titan Company Ltd is a prominent lifestyle company in India, renowned for its leading presence in the Watches, Jewellery, and Eyewear sectors. The company’s success is attributed to its trusted brands and unique customer experiences. Established in 1984, Titan was formed through a partnership between the TATA Group and the Tamilnadu Industrial Development Corporation.
The key details of the company are tabled below. Figures as of October 3rd, 2023
| Category | Details |
| Market Capitalization | Rs. 2,83,812 crores |
| PE Ratio | 86.89 |
| Return on Equity | 29.34% |
| Debt Equity Ratio | 0.00% |
| Promotor’s Holdings | 52.90% |
| Share price | Rs. 3196.25 |
| Dividend Yield | 0.32% |
The trailing returns of Titan Company Limited are tabled below
| Period | Trailing Returns |
| 1 year | 22.60% |
| 3 years | 38.67% |
| 5 years | 31.60% |
| 10 years | 29.83% |
Kalyan Jewellers India Ltd. is a prominent jewellery company in India known for designing, manufacturing, and selling a wide variety of gold, studded, and other jewellery items at different price ranges. It holds the distinction of being one of India’s largest jewellery retailers in terms of revenue as of FY20. The company was established by its current Managing Director, and Promoter, Mr. T.S. Kalyanaraman.
The key details of the company are tabled below. Figures as of October 3rd, 2023
| Category | Details |
| Market Capitalization | Rs. 23,676 crores |
| PE Ratio | 49.98 |
| Return on Equity | 13.47% |
| Debt Equity Ratio | 0.00% |
| Promotor’s Holdings | 60.55% |
| Share price | Rs. 229.65 |
| Dividend yield | 0.22% |
The trailing returns of Kalyan Jewellers Limited are tabled below
| Period | Trailing Returns |
| 1 year | 138.47% |
| 3 years | |
| 5 years | |
| 10 years |
Rajesh Exports was incorporated in 1989 and is a manufacturer of gold and gold products. The company operates retail showrooms under the brand name Shubh Jewellers. The company is also a major exporter, with Europe being the highest revenue territory followed by North America, the Middle East, the Far East and China.
The key details of the company are tabled below. Figures as of October 3rd, 2023
| Category | Details |
| Market Capitalization | Rs. 14,707 crores |
| PE Ratio | 10.09 |
| Return on Equity | 10.43% |
| Debt Equity Ratio | 0.00% |
| Promotor’s Holdings | 54.05% |
| Share price | Rs. 498 |
| Dividend yield | 0.20% |
The trailing returns of Rajesh Exports Limited are tabled below
| Period | Trailing Returns |
| 1 year | -13.96% |
| 3 years | 2.91% |
| 5 years | -5.34% |
| 10 years | 17.72% |
VGL has established a unique presence in the global retail sector, thanks to its innovative business approach. It has successfully carved out a specialized niche, particularly in the jewellery, accessories, and lifestyle product sectors, within the two largest economies in the world, the US and the UK. This achievement underscores VGL’s ability to cater to consumer preferences and demands, solidifying its strong market presence in these crucial regions.
The key details of the company are tabled below. Figures as of October 3rd, 2023
| Category | Details |
| Market Capitalization | Rs. 7,168 crores |
| PE Ratio | 63.63 |
| Return on Equity | 9.80% |
| Debt Equity Ratio | 0.00% |
| Promotor’s Holdings | 57.21% |
| Share price | Rs. 432.45 |
| Dividend yield | 1.36% |
The trailing returns of Vaibhav Global Limited are tabled below
| Period | Trailing Returns |
| 1 year | 22.98% |
| 3 years | 4.25% |
| 5 years | 29.21% |
| 10 years | 25.49% |
Senco Gold Limited was established in the year 1994 and has since grown to become a prominent jewellery retailer with a presence across the entire nation of India. Notably, it holds the distinguished position of being the leading organized jewellery retail entity in the Eastern region of India, primarily attributed to its extensive network of stores in this area. The company’s widespread presence underscores its significant influence and success in the jewellery retail industry within India’s Eastern region.
The key details of the company are tabled below. Figures as of October 3rd, 2023
| Category | Details |
| Market Capitalization | Rs. 4,988 crores |
| PE Ratio | |
| Return on Equity | 19.28% |
| Debt Equity Ratio | 1.25% |
| Promotor’s Holdings | 100.00% |
| Share price | Rs. 642.20 |
| Dividend yield |
The trailing returns of Senco Gold Limited are tabled below
| Period | Trailing Returns |
| 1 year | |
| 3 years | |
| 5 years | |
| 10 years |
Investing in gold stocks can be an attractive option for many reasons. These reasons are highlighted hereunder.
Diversifying an investment portfolio is a fundamental strategy to manage risk. Gold stocks offer an effective means of diversification because they often exhibit a low correlation with traditional asset classes like equities and bonds. Gold stocks in a portfolio can help stabilize stock markets when they are volatile due to economic and geopolitical factors. During periods when other investments may underperform, gold stocks can act as a buffer, helping to balance overall returns.
Inflation has been a recurring concern across the globe eroding the purchasing power of money over time. Gold has historically served as an effective hedge against inflation. When the cost of living rises, the value of gold typically appreciates. By investing in gold stocks, investors can protect the real value of their wealth and potentially counteract the erosive effects of inflation.
Gold has deep cultural and historical significance in a country like India and is seen as a symbol of wealth and prosperity. Gold stocks offer a modern avenue for preserving and growing wealth. As India continues to experience economic growth and rising incomes, investing in gold stocks aligns with the tradition of wealth preservation, providing the potential for long-term capital appreciation.
Gold is a highly liquid and easily accessible commodity in India. Gold stocks being traded on stock exchanges offer investors a straightforward, dynamic and convenient way to invest in this precious metal thereby eliminating the risk of investing in gold in the traditional manner. This liquidity ensures that investments can be readily converted into cash when needed, providing flexibility for financial goals and emergencies.
Gold has a history of maintaining its value and appreciation over the long term. This historical performance is an attractive feature for investors with a focus on wealth preservation and long-term financial goals. Gold stocks offer a way to tap into this historical performance while benefiting from the growth potential of companies engaged in the business of gold mining, jewellery making, exporting, etc.
Gold stocks are a newage way of investing in gold along with other dynamic options like Sovereign Gold Bonds, Gold ETFs, Digital gold, etc. These investment options are especially attractive to young investors who may not find investing in traditional gold an attractive investment option. Investors can invest in gold stocks either through gold mutual funds that invest in such gold stocks or in individual companies that meet their investment goals.
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