Gold stocks are always in the limelight whenever there is uncertainty in the market. Deccan Gold Mines Ltd., one of the only gold stocks listed on the Indian stock exchange is up by nearly 48% in the last one year (as of July 17, 2024). Another popular gold stock in India is Titan Company Ltd. In the last one year, this gold stock is up by % (as of July 17, 2024). Even the war between Russia and Ukraine seems to have no major impact on gold stocks. Kalyan Jewellers India Ltd is up by 188% in the past one year as on July 17, 2024.
This kind of performance justifies why gold is one of the most powerful asset classes in the world. And rightly so. Gold is a store of value. It is inflation-proof. It is the perfect hedge against economic downturns. It is one of the most stable and reliable asset-classes in the entire world. And gold has managed to prove its might during every economic crisis you could think of. Be it the great depression of the 1917s. Or the global financial crisis of 2008. Even the recent Russia-Ukraine conflict is a perfect example of how powerful gold truly is.
In this article:
The Russian invasion of Ukraine began on February 24, 2022. Just a day prior, on February 23, 2022, gold was trading at $1,907.76 per troy ounce. As soon as the news of the war broke out, all hell broke loose. Yes, gold moved from $ 1,907.76 to $ 2,050.17 on March 08, 2022. This was a rally of 7.46% in a span of nine days. So, whenever the world is in chaos, investors flock to gold. And not just individual investors. Even the biggest banks in the world maintain gold reserves in the form of gold bars, coins, etc. But this is not the only way to get exposure to the shiny metal. You can also invest in gold stocks. What are gold stocks? Well, gold stocks are stocks of companies which are involved in the mining or distribution of gold. But that’s not all. Companies like Titan Company Ltd. that uses gold as a raw material is also considered as gold stocks. Even companies that provide loan against gold can be categorised as gold stocks. The two examples of such gold stocks are Muthoot Finance Ltd and Manappuram Finance Ltd. Now ideally you would want to invest in gold mining companies, correct? But unfortunately, mining gold is not a lucrative proposition in India. One of the reasons for this is our geographical placement. The next problem is the high investment cost of mining gold. And lastly, the government has set heavy restrictions on opening and operating gold mines. This is why there are very few gold mining companies in India. In fact, India is one of the biggest importers of gold. This is why investing in companies, which use gold, as a raw material is a better option if you want to create wealth without actually owning physical gold. So, which gold stocks should you invest in 2024? Which are the top gold stocks in India in 2024? Don’t worry. Here is a list of gold stocks in India that can help you enjoy the gains of the shiny metal without owning physical gold.
List of Gold Stocks in India
Name | Market Capitalization (Rs Crore) | Price to Earning | Return on Equity | Debt to Equity |
286311 | 81.87 | 33.00 | 1.41 | |
73215 | 16.96 | 18.15 | 2.58 | |
Rajesh Exports Ltd. | 9311 | 27.75 | 10.54 | 0.05 |
17988 | 8.22 | 16.68 | 2.96 | |
5301 | 41.45 | 9.14 | 0.10 | |
51933 | 86.98 | 12.76 | 0.97 | |
1878 | 20.69 | 15.41 | 0.00 | |
975 | 13.44 | 9.07 | 0.45 | |
4922 | 40.04 | 27.95 | 0.95 | |
1289 | 16.69 | 6.03 | 0.44 | |
3087 | 0.99 | |||
3045 | 49.29 | 34.48 | 1.16 | |
911 | 16.74 | 7.39 | 0.87 | |
705 | 14.18 | 14.72 | 0.16 | |
568 | 316.92 | 2.53 | 0.00 | |
Atlas Jewellery India Ltd. | 93 | 61.14 | -3.05 | 0.00 |
61 | 98.45 | 3.58 | 0.50 | |
12 | 3.22 | |||
266 | 35.86 | 2.19 | 0.08 | |
306 | 35.16 | 15.21 | 0.49 | |
17 | 14.58 | 6.81 | 0.83 | |
80 | 12.87 | 12.80 | 0.54 | |
2821 | 69.85 | 21.28 | 1.49 | |
42 | 0.74 | |||
121 | 23.82 | 8.93 | 0.66 | |
23 | 8.65 | 6.28 | 0.00 | |
132 | 13.71 | 19.33 | 0.73 | |
31 | 1.54 | 20.06 | 0.01 | |
60 | 12.57 | 5.49 | 1.03 | |
66 | 21.06 | 7.95 | 0.61 | |
95 | 15.38 | 16.64 | 0.18 | |
71 | 107.83 | 4.01 | 0.07 | |
Laxmi Goldorna House Ltd. | 697 | 73.55 | 1.25 | 1.00 |
16 | 0.00 | |||
67 | 27.40 | 9.42 | 0.00 | |
17 | 0.09 | |||
17 | 0.00 | |||
26 | 33.60 | 4.88 | 0.53 | |
17 | 0.00 | |||
Midas Infra Trade Ltd. | 14 | 0.00 | ||
39 | 102.11 | 1.84 | 0.26 | |
8 | 131.28 | 0.20 | 0.01 | |
16 | 11.66 | 9.52 | 0.82 | |
21 | 32.64 | 5.91 | 0.00 | |
285 | 835.55 | -9.34 | 0.02 | |
35 | 22.98 | 9.35 | 2.10 | |
13 | 805.58 | 0.61 | 0.00 | |
28 | 70.93 | 11.21 | 0.26 | |
3 | 1.56 | |||
5 | 15.14 | |||
Top Gold Stocks in India in 2024
Gold Stock #1: Deccan Gold Mines Ltd.
Deccan Gold Mines Ltd. is the only listed gold mining stock in India. It was established in 2003. Over the last 18 years, it has successfully located gold prospects in various areas of Karnataka like Mangalagatti, Hirenagnur, and Hutti North etc. To diversify its portfolio, Deccan Gold Mines Ltd. also started mining gold in Tanzania.
Key Financials of Deccan Gold Mines Ltd. as on July 11, 2024
Market Capitalization (Rs. in Crores): | 1,757 | Face Value: | 1 | (4.38) | |
14 | -10.70% | 0.47 | |||
-35.20% | 0.00% | ||||
Revenue (Rs. in Crores): | 4 | Earnings (Rs. in Crores): | (64) | Cash (Rs. in Crores): | 10 |
Total Debt (Rs. in crores): | 99 | Promotor's Holdings (%): | 25.60% |
Gold Stock #2: Rajesh Exports Ltd.
Rajesh Exports Ltd. is another gold stock that is involved in the manufacturing and distribution of gold and gold products. It refines over 35% of the world’s total gold. It is the largest gold refiner in the world. It also produces and supplies VALCAMBI brand bullions, which is used by some of the biggest banks in the world.
Key Financials of Rajesh Exports Ltd. as on July 11, 2024
Market Capitalization (Rs. in Crores): | 9,311 | Face Value: | 1 | EPS (Rs.): | 11.40 |
Book Value: | 516 | ROCE (%): | 3.23% | Debt to Equity: | 0.05 |
Stock PE: | 27.75 | ROE (%): | 10.54% | Dividend Yield (%) | 0.00% |
Revenue (Rs. in Crores): | 280,676 | Earnings (Rs. in Crores): | 336 | Cash (Rs. in Crores): | 2,273 |
Total Debt (Rs. in crores): | 655 | Promotor's Holdings (%): | 54.60% |
Gold Stock #3: Titan Company Ltd.
The next gold stock in India is Titan Company Ltd. This TATA group company was launched in 1984 as a joint venture between TATA group and the Tamil Nadu Industrial Development Corporation (TIDCO). It is the largest jewellery retailer in India. You must have used Titan watches and jewellery from Titan brands like Mia, Tanishq, Zoya and Caratlane. It also has other products like the eyewear division under the brand fasttrack, and Perfumer under the brand SKINN.
Did you know that Titan Company Ltd is one of the favourite stocks of Big Bull Mr Rakesh Jhunjhunwala? Yes, find out where else the big bull is investing; Check out the detailed portfolio of Rakesh Jhunjhunwala here.
Key Financials of Titan Company Ltd. as on July 11, 2024
Market Capitalization (Rs. in Crores): | 286,311 | Face Value: | 1 | EPS (Rs.): | 39.40 |
Book Value: | 106 | ROCE (%): | 22.70% | Debt to Equity: | 1.41 |
Stock PE: | 81.87 | ROE (%): | 33% | Dividend Yield (%) | 0.34% |
Revenue (Rs. in Crores): | 51,084 | Earnings (Rs. in Crores): | 3,496 | Cash (Rs. in Crores): | 1,526 |
Total Debt (Rs. in crores): | 15,528 | Promotor's Holdings (%): | 52.90% |
Gold Stock #4: Muthoot Finance Ltd.
Muthoot Finance Ltd. is the largest and most trusted gold financing company in India. The company holds nearly 171 tonnes of gold as security. Its total loans under management is a whopping Rs 5,26,223 crore. Its key subsidiaries include Muthoot Housing Finance, Muthoot Insurance Brokers etc.
Muthoot Finance Ltd. provides various services like gold loans, foreign inward money transfer services, domestic money transfers, microfinance, non-convertible debentures, insurance, personal, home, vehicle loans etc.
Key Financials of Muthoot Finance Ltd. as on July 11, 2024
Market Capitalization (Rs. in Crores): | 73,215 | Face Value: | 10 | EPS (Rs.): | 101.00 |
Book Value: | 605 | ROCE (%): | 13.10% | Debt to Equity: | 2.58 |
Stock PE: | 16.96 | ROE (%): | 18.15% | Dividend Yield (%) | 1.31% |
Revenue (Rs. in Crores): | 15,062 | Earnings (Rs. in Crores): | 4,468 | Cash (Rs. in Crores): | 6,272 |
Total Debt (Rs. in crores): | 68,274 | Promotor's Holdings (%): | 73.40% |
Gold Stock #5: Manappuram Finance Ltd.
Manappuram Finance Ltd. is a non-banking finance company (NBFC) which provides loans or finance against gold. Key Financials of Manappuram Finance Ltd. as on July 11, 2024
Market Capitalization (Rs. in Crores): | 17,988 | Face Value: | 2 | EPS (Rs.): | 25.90 |
Book Value: | 136 | ROCE (%): | 13.80% | Debt to Equity: | 2.96 |
Stock PE: | 8.22 | ROE (%): | 16.68% | Dividend Yield (%) | 1.67% |
Revenue (Rs. in Crores): | 8,848 | Earnings (Rs. in Crores): | 2,197 | Cash (Rs. in Crores): | 3,181 |
Total Debt (Rs. in crores): | 34,320 | Promotor's Holdings (%): | 35.20% |
Gold Stock #6: Kalyan Jewellers Ltd.
Kalyan Jewellers Ltd. is one of the most popular jewellery brands in India. I am sure you must have seen Kalyan Jewellers’ ad on TV starring Amitabh Bacchan and Katrina Kaif. This gold company manufactures and sells a variety of gold, diamond (ruby, sapphire etc) across india.
Kalyan Jewellers Ltd. operates a variety of brands like Nimah for gold and precious stone studded jewellery, Tejasvi, Rang, Anokhi for antique wear etc.
Key Financials of Kalyan Jewellers Ltd. as on July 11, 2024
Market Capitalization (Rs. in Crores): | 51,933 | Face Value: | 10 | EPS (Rs.): | 5.80 |
Book Value (Rs.): | 41 | ROCE (%): | 13.40% | Debt to Equity: | 0.97 |
Stock PE: | 86.98 | ROE (%): | 12.76% | Dividend Yield (%) | 0.10% |
Revenue (Rs. in Crores): | 18,548 | Earnings (Rs. in Crores): | 596 | Cash (Rs. in Crores): | 975 |
Total Debt (Rs. in crores): | 4,486 | Promotor's Holdings (%): | 60.60% |
Gold Stock #7: Goldiam International Ltd.
Goldiam International Ltd. manufactures and exports gold and diamonds jewellery to global retailers. Key Financials of Goldiam International Ltd. as on July 11, 2024
Market Capitalization (Rs. in Crores): | 1,878 | Face Value: | 2 | EPS (Rs.): | 8.52 |
Book Value: | 59 | ROCE (%): | 19.80% | Debt to Equity: | 0.00 |
Stock PE: | 20.69 | ROE (%): | 15.41% | Dividend Yield (%) | 1.09% |
Revenue (Rs. in Crores): | 603 | Earnings (Rs. in Crores): | 91 | Cash (Rs. in Crores): | 145 |
Total Debt (Rs. in crores): | 5 | Promotor's Holdings (%): | 64.30% |
India imported gold worth USD 35 billion in 2022-23 and USD 45 billion in 2023-24. This demand for the shiny yellow metal is further expected to increase. As long as there is chaos and uncertainty in the world, the demand for the safest asset class, gold, will continue to rise. If you too want to partake in this gold rush, then you can either invest in physical gold, gold ETFs or buy gold stocks from the list above.
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