- 10 Sept 2024
- 27 mins read
- By: BlinkX Research Team
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As the world's second-largest consumer of gold, India has created a robust market for gold-related investments. Investing in gold stocks offers a way to take advantage of the potential benefits of gold without physically buying the metal. According to the World Gold Council (WGC), there has been a 15% annual growth in the demand for gold equities as investments. In this blog, we will explore the gold stocks in India based on their PE ratios, and explain why investing in them could be advantageous. It will also discuss some useful tips for making informed investment decisions. Whether you're a new investor looking to diversify your portfolio, understanding gold stocks is crucial for maximizing your returns.
What are Gold Stocks?
Gold stocks refer to shares of companies involved in the gold industry. These companies may engage in various aspects of the gold market, including mining, exploration, refining, and trading. Investing in gold stocks means buying equity in these companies, which can offer exposure to the gold market without the need to purchase physical gold.
Table of Contents
- What are Gold Stocks?
- List of Gold Share Prices in India
- Gold Companies in India: A Brief Overview
- The Indian Gold Market is in its Golden Age
- Why Invest in Gold Stocks?
- Tips for Gold Share Investing
- How to Invest in Gold Stocks in India via BlinkX?
- Other Ways to Invest in Gold Stocks
- Performance Parameters to Consider Before Investing in Gold Stocks
- How to Choose the Best Gold Stocks in India for Investments?
- Features of Gold Stocks in India
- Benefits and Risks of Investing in Gold Stocks
- Equity and Gold: An Inverse Relationship
List of Gold Share Prices in India
Below is the list of some of the gold-related stocks in India:
Gold Company Name | CAGR of 5 Years (27th Aug 2024) | PE Ratio |
Manappuram Finance Ltd | 12% | 8.18 |
NMDC Limited | 30% | 11.1 |
Muthoot Finance Ltd | 26% | 19.1 |
Hindustan Zinc Limited | 20% | 27.6 |
Vaibhav Global Ltd | 14% | 42.3 |
KDDL Ltd | 59% | 42.9 |
Thangamayil Jewellery Ltd | 67% | 43.3 |
Titan Company Ltd | 27% | 92.5 |
Kalyan Jewellers India Ltd | 52.3% | 100 |
Rajesh Exports Ltd | 16% | 229 |
Disclaimer: The information provided on the above stocks is for informational purposes only. It is crucial to conduct thorough research before making any investment decisions regarding these stocks. We do not recommend trading any stocks without comprehensive research and professional financial advice. Always consult with a certified financial advisor to ensure informed and appropriate investment choices.
Gold Companies in India: A Brief Overview
From our carefully selected gold stock list in India, let's explore gold stocks that you can consider buying in India.
Manappuram Finance Ltd
- Founded in 1992, Manappuram Finance Ltd is a leading non-banking financial company (NBFC) in India, primarily engaged in the business of gold loan financing.
- The company also offers a range of other financial products including microfinance, insurance, and vehicle loans.
- Manappuram Finance has shown steady growth over the years.
- As of the latest financial reports, the company has demonstrated consistent profitability with strong asset quality and a robust capital base.
Get more details about Manappuram Finance Ltd share price here.
Know the Manappuram Finance Ltd Share Price History here.
NMDC Limited
- Established in 1958, NMDC Limited is a state-owned iron ore mining company. It is one of the largest producers of iron ore in India, with mining operations across multiple states.
- The company also engages in the production of diamond mining and other minerals.
- NMDC Limited has maintained a strong financial performance, driven by its significant iron ore production and strategic investments in mining infrastructure.
- The company's revenues and profits have generally reflected its operational efficiency and the high demand for iron ore in the global market.
Get more details about National Mineral Development Corporation (NMDC) share price here.
Know the National Mineral Development Corporation (NMDC) Share Price History here.
Muthoot Finance Ltd
- Established in 1997, Muthoot Finance Ltd is another major player in the gold loan sector.
- The company provides gold-backed loans to individuals and businesses, along with a variety of other financial services including personal loans and insurance.
- Muthoot Finance has been a consistently profitable entity, showcasing strong financial health with impressive growth in its gold loan book and diversified financial services.
- The company's steady performance is supported by its extensive branch network and customer base.
Get more details about Muthoot Finance Ltd share price here.
Know the Muthoot Finance Ltd Share Price History here.
Hindustan Zinc Limited
- Founded in 1966, Hindustan Zinc Limited is a leading producer of zinc, lead, and silver.
- The company operates several mining and smelting facilities across India, focusing on the production of non-ferrous metals.
- Hindustan Zinc has consistently reported strong financial results due to its dominant position in the zinc production market and efficient operational practices.
- The company's profitability is enhanced by favourable metal prices and robust production capacities.
Get more details about Hindustan Zinc Limited share price here.
Know the Hindustan Zinc Limited Share Price History here.
Vaibhav Global Ltd
- Vaibhav Global Ltd was founded in 1980, it operates primarily in the retail and manufacturing sectors, specializing in the design, manufacture, and sale of jewellery, watches, and lifestyle products.
- Vaibhav Global has shown significant growth in its financial performance, driven by its successful retail operations and strong presence in the e-commerce sector.
- The company's revenues and profits have benefited from its extensive product range and global market reach.
Get more details about Vaibhav Global Ltd share price here.
Know the Vaibhav Global Ltd Share Price History here.
KDDL Ltd
- Established in 1981, KDDL Ltd is a prominent manufacturer of watch components and accessories.
- The company also engages in the retail of luxury watches and other timepieces through its various brands.
- KDDL Ltd has shown solid financial performance, with growth in both its manufacturing and retail segments.
- The company’s financial health is supported by its diverse product portfolio and its strategic partnerships in the watch industry.
Get more details about KDDL Ltd share price here.
Know the KDDL Ltd Share Price History here.
Thangamayil Jewellery Ltd
- Thangamayil Jewellery Ltd was founded in 1988 and is a major player in the retail jewellery market in India.
- The company is involved in the design, manufacture, and sale of gold and diamond jewellery.
- Thangamayil Jewellery has experienced steady financial growth, benefiting from its strong market presence in South India and its extensive retail network.
- The company’s profitability is supported by its focus on quality and customer service.
Get more details about Thangamayil Jewellery Ltd share price here.
Know the Thangamayil Jewellery Ltd Share Price History here.
Titan Company Ltd
- Established in 1984, Titan Company Ltd is a leading manufacturer and retailer of watches, jewellery, and eyewear.
- The company is known for its popular brands like Titan, Tanishq, and Fastrack.
- Titan Company has consistently reported strong financial results, driven by its diverse product offerings and robust retail presence.
- The company's growth is supported by its innovative approach and strong brand equity in the consumer market.
Get more details about Titan Company Ltd share price here.
Know the Titan Company Ltd Share Price History here.
Kalyan Jewellers India Ltd
- Established in 1993, Kalyan Jewellers is a major jewellery retailer in India, offering a wide range of gold, diamond, and platinum jewellery.
- The company operates numerous retail outlets across the country.
- Kalyan Jewellers has shown impressive financial growth, fueled by its extensive retail network and strong market demand for its products.
- The company's profitability reflects its successful expansion and brand recognition.
Get more details about Kalyan Jewellers India Ltd share price here.
Know the Kalyan Jewellers India Ltd Share Price History here.
Rajesh Exports Ltd
- Established in 1989, Rajesh Exports Ltd is one of the largest exporters of gold jewellery in India.
- The company is engaged in the design, manufacture, and export of gold jewellery and related products.
- Rajesh Exports has demonstrated robust financial performance, supported by its significant export volumes and operational efficiency.
- The company’s financial results reflect its strong position in the global jewellery market and effective business strategies.
Get more details about Rajesh Exports Ltd share price here.
Know the Rajesh Exports Ltd Share Price History here.
The Indian Gold Market is in its Golden Age
The Egyptian alchemist Zosimos was the one who first recognized gold as a resource for protection. Although middle-class cultures continue to have problems between gold and the stock market, these arguments are rare among investors. In recent years, there has been a noticeable increase in demand for Indian gold stocks from both individual and institutional investors. Government actions such as the establishment of the Gold Monetization Scheme and limits on imports of gold have also influenced the market. Two other religious and cultural events that significantly affect the Indian gold market are festivals and marriages. A lot of optimism about the future of Indian gold stocks.
Rising incomes that can be spent and the nation's growing middle class are expected to drive up demand for gold, particularly for investments. The Indian government's policies are also anticipated to have a beneficial effect on the price of gold on the stock exchange. There is the scheme called gold monetization which is designed to maximise the country's gold reserves while also lessening the imports. It results in a fall in the price and an increase in supply.
There is one other benefit that is useful for the Indian stock market. Digital gold is increasing in India and has become popular among individuals over the past few years. People can buy and exchange small amounts of gold digitally.
Why Invest in Gold Stocks?
Investors in India are undeniably attracted to gold mining stocks as a reliable hedge against inflation. As time passes, gold's ability to act as an effective safeguard against inflation becomes more apparent. As inflation rates climb higher, the value of a country's currency tends to decrease. When compared to gold, major currencies have continuously decreased over extended periods throughout history. When inflation exceeds current interest rates, gold represents an investment of choice in a nation like India, where many investment tools don't provide substantial profits.
Tips for Gold Share Investing
Investing in gold shares in India can boost the diversity of your portfolio and profit from gold's price rise. Having an approach in place can help you enhance your chances of success. Below are some tips for the same.