Is gold a jackpot for you? Brokerages recommend betting on these 3 stocks
Gold Stocks to Buy: A sudden 5% drop in gold prices between Diwali and Bhai Dooj has surprised investors. While gold has gained 50% in the past year, jewelry sector stocks haven't kept pace. Some are now expected to recover.
Gold Rate vs Jewellery Stocks: While everyone is busy buying gold during the festive season, a sudden 5% drop in the gold rate has surprised investors. Gold prices fell from record highs during major festivals like Diwali and Bhai Dooj. Now the question arises, will this drop also affect the shares of jewellery companies? While gold has seen a spectacular rally of up to 50% in the last one year, the stocks of the jewellery sector have not been able to maintain the same momentum. The shares of many companies have fallen by 30%-50%. In such a situation, know which jewellery stocks can give good returns and what are the brokerage houses saying?
Senco Gold's stock has seen the largest decline compared to the sector over the past year. However, company management believes that several interesting changes are taking place on the demand side. Suvankar Sen, MD and CEO of the company, stated that consumer demand for diamond and platinum jewelry is growing rapidly. 9K and 14K gold jewelry is also a popular choice among young people and first-time buyers. Senco Gold's "Old Gold Exchange Scheme" and "Savings-Based Initiatives" have played a significant role in attracting new customers. The company is now focusing more on design and affordable varieties, which is increasing participation among the younger demographic. Brokerage firm Motilal Oswal has given the stock a neutral rating and set a target price of ₹385, which currently stands at ₹327.50. The brokerage believes that the company has created a good balance of festive and bridal collections in its inventory, and has also included 9K jewellery along with lightweight jewellery to cater to the changing preferences of consumers.
PN Gadgil Jewellers Limited is the second-largest organized jeweler in Maharashtra, and its regional expertise sets it apart. Leading brokerage firms Motilal Oswal and Nuvama have given this stock a 'buy' rating. Motilal Oswal believes the stock could reach ₹825 in the next 12 months, while Nuvama has a target of ₹860. Currently, the stock is trading at ₹682.60, meaning an upside of approximately 31% is possible from here. The company is rapidly expanding its network from Maharashtra to North India. Additionally, the company is adding high-''>Sky Gold & Diamond Share Price Target
Sky Gold & Diamond Limited's stock is one of the few jewelry stocks that has delivered positive returns over the past year. The stock has gained 8% during this period. Brokerage house Nuvama recently gave the stock a 'buy' rating and a target price of ₹450 per share, which is currently trading at ₹361. According to Nuvama, Sky Gold is a leading B2B designer and gold jewelry manufacturer, with clients including some of the country's largest jewelry retailers. Over the past two years, the company has strengthened its business through expansion into new categories and acquisitions. Additionally, its 'Advanced Gold Model' and expansion of its export business could enhance the company's efficiency and profitability in the future.
Disclaimer: This article is for informational purposes only. Any information or suggestions provided herein do not constitute investment advice. Investing in the stock market is subject to risk. Please consult your financial advisor or market expert before investing.
Image Credit: Meta AI