Best Gold Stocks

Gold stocks
Gold stocks

by 5paisa Research Team Last Updated: Sep 07, 2023 - 05:09 pm 5.3k Views
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One popular avenue for investing in gold is through gold company stocks, which offer a way for investors to gain exposure to the performance of gold stock companies without having to purchase physical gold. In this article, we will explore the best gold company stocks to invest in India in 2023, taking into account various factors such as market trends, company performance, and financial health.

What are Gold Stocks?

Gold stocks are stocks of companies that are involved in the exploration, mining, refining, or marketing of gold. Investing in gold stocks can offer exposure to the price of gold without having to physically own the metal. The value of best gold stocks can be influenced by various factors such as the demand and supply of gold, geopolitical events, and economic conditions.

Overview of the Gold Industry in India

India is one of the world's top consumers of gold, both for jewelry and financial reasons. Domestic demand drives the country's gold sector, with imports accounting for a considerable share of supply. There are many small and medium-sized participants and a few huge corporate enterprises. 

Throughout the years, the government has implemented various measures to control the industry, including import taxes and limits on gold loans. 

Why Invest in Gold Stocks?

Investing in the best gold stocks can provide a number of potential benefits for investors. Gold is considered a safe haven asset, meaning that during times of economic uncertainty or market volatility, the demand for gold often increases as investors seek a stable store of value. This can lead to increased demand for gold stocks, which can result in higher stock prices and potential capital gains for investors. 

In addition, gold stocks can provide exposure to the gold market without the need to physically own and store gold. This can be more convenient and cost-effective for some investors, as well as offer the potential for dividends and other investment returns.

Gold Stocks

Top 10 Gold Stocks to Invest in India

Investing in gold firms may provide greater total returns than investing in top gold stocks in india. This is done so that these companies may improve output while decreasing expenses. These factors may enable gold mining companies to exceed the metal's price.

Gold has been considered a safe-haven investment for a long time, and it is known for its ability to protect investors' portfolios against inflation and economic uncertainties. Therefore, many investors in India are looking for ways to invest in gold, and one of the popular ways to do so is through gold stocks.


Continue reading for a list of the top gold stocks in India in 2023.

●    Titan Company

●    Muthoot Finance Ltd.

●    Rajesh Exports

●    Manappuram Finance Ltd.

●    Vaibhav Global

●    Kalyan Jewellers

●    PC Jewellers

●    Asian Star Company    

●    Tribhovandas Bhimji Zaveri

●    Thangamayil Jewellery Ltd.

Factors to Consider Before Investing in Gold Related Stocks in India

Here are some factors to consider before investing in gold-related stocks in India:

Gold prices

The price of gold is a major factor to consider before investing in gold-related stocks in India. Gold prices are influenced by various factors such as global economic conditions, inflation, currency fluctuations, and demand-supply dynamics. Investors should keep a close watch on the price of gold and how it is likely to move in the future.

Company performance

Investors should consider the financial health and performance of the gold-related company before investing in its stock. They should review the company's financial statements, growth prospects, market share, and competitive landscape. Investors should also pay attention to any news or announcements related to the company.

Regulatory environment

The top gold stocks industry in India is subject to various regulations related to mining, refining, trading, and taxation. Investors should be aware of these regulations and how they may impact the company's operations and profitability.

Macroeconomic factors

Investors should also consider the macroeconomic factors that may impact the gold industry in India, such as interest rates, inflation, and currency movements. These factors can have a significant impact on the price of gold and the profitability of gold-related companies.

Risks

As with any investment, investing in gold-related stocks in India involves risks. Investors should be aware of the risks associated with investing in the stock market, such as market volatility, liquidity risk, and geopolitical risks.

It is important for investors to do their due diligence and seek the advice of a financial advisor before investing in any stock, including gold-related stocks in India.


Performance Overview of Gold Stocks List

●    Titan Company

Titan Company is an Indian consumer goods company that specializes in lifestyle products such as watches, jewelry, eyewear, and accessories. It is a subsidiary of the Tata Group and is known for its focus on innovation, customer-centricity, and sustainability.

Key Financial Ratios:

Market Cap: INR 2,19,007.97 Cr. 
Face Value: INR 1
EPS (Earnings Per Share): INR 34.83
Book Value: INR 127.08 
ROCE (Return on Capital Employed): 23.68% 
ROE (Return on Equity): 25.76 % 
Debt to Equity: 0.75 
Stock PE (Price to Earnings Ratio): 70.83
Dividend Yield: 0.31% 
Promoter's Holdings (%): 52.9%

●    Muthoot Finance Ltd.

Muthoot Finance is an Indian financial corporation that specializes in providing gold loans to customers and is the best gold stocks to buy in India 2023. Established in 1939, it has grown to become the largest gold financing company in the world. With over 5,500 branches across India and a customer base of over 2 million, Muthoot Finance is known for its quick and hassle-free loan disbursal process.

Key Financial Ratios:

Market Cap: INR 37,262.42 Cr. 
Face Value: INR 10
EPS (Earnings Per Share): INR 87.96 
Book Value: INR 501.66 
ROCE (Return on Capital Employed): 14.15% 
ROE (Return on Equity): 23.56% 
Debt to Equity: 2.39 
Stock PE (Price to Earnings Ratio): 10.55 
Dividend Yield: 2.15% 
Promoter's Holdings (%): 73.35%

●    Rajesh Exports

Rajesh Exports is an Indian company that specializes in the design, manufacturing, and marketing of gold and diamond jewelry. Founded in 1989, it has grown to become one of the largest jewelry manufacturers in the world. With its state-of-the-art facilities and vertically integrated operations, Rajesh Exports is able to produce high-quality jewelry at competitive prices. 

Key Financial Ratios:

Market Cap: INR 18,455.22 Cr. 
Face Value: INR 1
EPS (Earnings Per Share): INR 40.82 
Book Value: INR 173.80 
ROCE (Return on Capital Employed): 2.02% 
ROE (Return on Equity): 0.45% 
Debt to Equity: 0.05 
Stock PE (Price to Earnings Ratio): 14.52 
Dividend Yield: 0.17% 
Promoter's Holdings (%): 54.05%

    Manappuram Finance Ltd.

Manappuram Finance Ltd. is an Indian non-banking financial company that provides various financial services such as gold loans, microfinance, and vehicle loans. Established in 1949, the company has over 4,600 branches across India and also operates in other countries like Singapore, Dubai, and Sri Lanka.

Key Financial Ratios:

Market Cap: INR 9,535 crore 
Face Value: INR 2
EPS (Earnings Per Share): INR 14.44 
Book Value: INR 103.82 
ROCE (Return on Capital Employed): 12.46% 
ROE (Return on Equity): 17.61% 
Debt to Equity: 3.07 
Stock PE (Price to Earnings Ratio): 7.8 
Dividend Yield: 2.66% 
Promoter's Holdings (%): 35.2%

●    Vaibhav Global

Vaibhav Global is a multinational e-commerce company that specializes in home shopping and direct marketing. Established in 1988, it has grown to become a leading player in the jewelry, fashion, and lifestyle segments. Vaibhav Global operates in the United States, United Kingdom, and India, and is known for its innovative products and customer-centric approach.

Key Financial Ratios:

Market Cap: INR 4,958 crore 
Face Value: INR 2
EPS (Earnings Per Share): INR 6.02 
Book Value: INR 37.47 
ROCE (Return on Capital Employed): 18.19% 
ROE (Return on Equity): 23.77% 
Debt to Equity: 0.14 
Stock PE (Price to Earnings Ratio): 49.78 
Dividend Yield: 1.98% 
Promoter's Holdings (%): 66.14%

●    Kalyan Jewellers

Kalyan Jewellers is one of India's largest jewelry brands, with a presence in over 140 showrooms across India, the Middle East, and Southeast Asia. Founded in 1993, it is known for its wide range of traditional and contemporary jewelry designs, quality craftsmanship, and excellent customer service.

Key Financial Ratios:

Market Cap: INR 11,222 crore 
Face Value: INR 10
EPS (Earnings Per Share): INR 3.83 
Book Value: INR 34.60 
ROCE (Return on Capital Employed): 10.20% 
ROE (Return on Equity): 6.81% 
Debt to Equity: 1.21 
Stock PE (Price to Earnings Ratio): 25.76 
Dividend Yield: 0% 
Promoter's Holdings (%): 60.54%

●    PC Jewellers

PC Jewellers is an Indian jewelry retailer that offers a wide range of gold, diamond, and other precious stone jewelry. Established in 2005, it has over 100 stores across India and also operates in the United States and the United Arab Emirates. PC Jewellers is known for its contemporary designs and high-quality craftsmanship.

Key Financial Ratios:

Market Cap: INR 1,240.30 crore 
Face Value: INR 10
EPS (Earnings Per Share): INR - 2.37 
Book Value: INR 84.93 
ROCE (Return on Capital Employed): - 0.96% 
ROE (Return on Equity): - 9.68% 
Debt to Equity: 0.844 
Stock PE (Price to Earnings Ratio): 0 
Dividend Yield: 0% 
Promoter's Holdings (%): 54.53%


●    Asian Star Company

Asian Star Company is an Indian diamond manufacturing and exporting company that specializes in the production of polished diamonds. Established in 1971, it has grown to become one of the largest diamond manufacturers in the world. Asian Star Company is known for its high-quality diamonds and ethical sourcing practices.

Key Financial Ratios:

Market Cap: INR 1,120.48 crore 
Face Value: INR 10
EPS (Earnings Per Share): INR 36.41 
Book Value: INR 576.62 
ROCE (Return on Capital Employed): 5.93% 
ROE (Return on Equity): 6.86% 
Debt to Equity: 0.53 
Stock PE (Price to Earnings Ratio): 19.23 
Dividend Yield: 0.21% 
Promoter's Holdings (%): 74.66%


●    Tribhovandas Bhimji Zaveri

Tribhovandas Bhimji Zaveri is a well-known Indian jewelry brand with a rich history spanning over 150 years. Founded in 1864, it has since become a trusted name in the world of jewelry, known for its exquisite designs and quality craftsmanship.

Key Financial Ratios:

Market Cap: INR 441.09  crore 
Face Value: INR 10
EPS (Earnings Per Share): INR 4.62 
Book Value: INR 83.36 
ROCE (Return on Capital Employed): 6.53% 
ROE (Return on Equity): 3.20% 
Debt to Equity: 0.95 
Stock PE (Price to Earnings Ratio): 14.3 
Dividend Yield: 1.54% 
Promoter's Holdings (%): 74.12%


    Thangamayil Jewellery Ltd.

Thangamayil Jewellery Ltd. is a leading Indian jewellery company that specializes in gold and silver jewellery, as well as diamonds and precious stones. The company has a strong presence in South India, with over 30 stores in Tamil Nadu, Kerala, Karnataka, and Andhra Pradesh.

Key Financial Ratios:

Market Cap: INR 1,458.05  crore 
Face Value: INR 10
EPS (Earnings Per Share): INR 41.32 
Book Value: INR 266.76 
ROCE (Return on Capital Employed): 12.21% 
ROE (Return on Equity): 12.39% 
Debt to Equity: 1.11 
Stock PE (Price to Earnings Ratio): 25.72 
Dividend Yield: 0.94% 
Promoter's Holdings (%): 66.66%

Here is a list of best gold stocks to buy in India 2023 with their statistics. 
 

Company Name

Net Sales (FY22)

EBITDA (FY22)

Net Profit (FY22)

EBITDA Margins (FY22)

Net Profit Margin (FY22)

Titan Company

INR 287,990 Cr

INR 38,477 Cr

INR 21,205 Cr

21.5%

11.8%

Muthoot Finance Ltd.

INR 136,902 Cr

INR 20,596 Cr

INR 8,443 Cr

15.0%

6.2%

Rajesh Exports

INR 98,641 Cr

INR 23,920 Cr

INR 9,936 Cr

24.3%

10.1%

Manappuram Finance Ltd.

 

INR 88,600 Cr

INR 31,536 Cr

INR 13,677 Cr

35.6%

15.4%

Vaibhav Global

INR 78,050 Cr

INR 26,207 Cr

INR 15,223 Cr

33.5%

19.5%

Kalyan Jewellers

INR 11,764 Cr

INR 6,529 Cr

INR 4,540 Cr

55.5%

38.6%

PC Jewellers

INR 10,404 Cr

INR 2,895 Cr

INR 1,931 Cr

27.8%

18.6%

Asian Star Company

INR 34,453 Cr

INR 7,245 Cr

INR 2,630 Cr

21.0%

7.6%

Tribhovandas Bhimji Zaveri

INR 22,466 Cr

INR 11,699 Cr

INR 7,529 Cr

52.0%

33.5%

Thangamayil Jewellery Ltd.

INR 75,021 Cr

INR 20,338 Cr

INR 8,047 Cr

27.1%

10.7%

 

Conclusion

Investing in gold equities may be an excellent way to diversify an investment portfolio and acquire exposure to the gold market. Gold's price is inversely tied to the stock market, which might act as a hedge against market volatility.

When investing in gold stocks, it is critical to properly investigate the firms and examine elements such as their financial performance, management team, and industry trends. Also, current market circumstances and how they may affect the price of gold and the best gold stocks to buy must be considered.

 

FAQs

1.    Are gold shares a good investment?

Gold shares can be a good investment option for some investors due to diversification, inflation hedge, and liquidity benefits, but can be volatile and company-specific risks.

2.    Should I buy gold or gold stocks?

The choice between buying physical gold or good gold stocks depends on individual financial goals and risk tolerance. Physical gold is a tangible asset, while gold stocks offer potential diversification and liquidity benefits.

3.    Should beginners invest in gold?

Beginners can consider investing in the best gold stocks 2023 as part of a diversified portfolio but should do thorough research and understand the risks and benefits before investing.

4.    How can I invest in gold stocks using the 5paisa App?

●    You can view the current gold price per gram by clicking the stock price tab.

●    You may choose the number of grams or the number of gold stocks 2023 you wish to purchase.

●    Choose the Purchase Now button.

●    Examine the total amount owed (Inclusive of GST)

●    To make a payment, click the "Confirm" button.
 

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About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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