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Akshaya Tritiya 2024: Jewellery Stocks Glitter, Multibaggers Beat Sensex - Details

Gold's traditional appeal is facing stiff competition from India's booming equity markets, which have unearthed four multibagger stocks in the jewellery sector since the last Akshaya Tritiya.

Despite gold offering a respectable 16 per cent return, these stocks have outshone not just the yellow metal but also the S&P BSE Sensex, which boasted a 21 per cent yield during the same period.

Leading the pack of high-fliers are Sky Gold, Kalyan Jewellers India, Thangamayil Jewellery, and PC Jeweller, delivering impressive returns of 302 per cent, 281 per cent, 135 per cent, and 100 per cent, respectively. Not far behind are Radhika Jeweltech, Ashapuri Gold Ornament, and Tribhovandas Bhimji Zaveri, offering returns ranging from 91.33 per cent to 69.69 per cent.

While Uday Jewellery Industries, Golkunda Diamonds & Jewellery, Titan Company, and Asian Star Company clocked double-digit returns between 49.67 per cent and 21.54 per cent, Goldiam International and Renaissance Global yielded 18.61 per cent and 13.98 per cent, respectively.

According to The Economic Times report, analysts remain optimistic about gold's future, citing geopolitical tensions, steady central bank purchases, and robust demand from emerging markets, particularly China, as driving factors behind its ascent. Parth Shah, a Research Analyst at Stoxbox, favors Senco Gold, projecting a 20 per cent upside over the next 12 months, attributing the company's growth potential to strategic initiatives and a favorable market landscape

However, not all glitters are gold; Starlineps Enterprises and Rajesh Exports saw lackluster performances, with returns of merely 2 per cent and a dismal negative 47 per cent, respectively, since the last Akshaya Tritiya.

Delving deeper into the market dynamics, Varyaa Creations witnessed an 18% erosion in its price since its listing on April 30, 2024, despite having a market capitalization of Rs 105 crore. On the other hand, RBZ Jewellers, Motisons Jewellers, and multibagger Senco Gold showcased gains of 28 per cent, 59 per cent, and 117 per cent, respectively, since their respective listings.

The report added that Nilesh Jain, Assistant Vice President at Centrum Broking, advises investors to consider Kalyan Jewellers for a positional upside of Rs 500, with major support at Rs 340 levels. As for Sky Gold, Jain sees a potential upside target of Rs 1,500, backed by a breakout from a triangle pattern on the weekly chart.