Gold prices have remained extremely volatile in few months, touching an all-time high of ₹1,27,500 per 10 grams on October 27. Despite volatility, the bullion has remained a safe-haven for investors amid geopolitical cues.
“Gold has long been regarded as a reliable safe-haven asset, offering protection against economic stress and geopolitical uncertainty, and investors typically gain exposure either through physical gold, ETFs, or by buying stocks of companies involved in gold trading, jewellery manufacturing, or gold-backed lending,” said Sugandha Sachdeva- Founder-SS WealthStreet.
How have jewellery stocks performed in 2025?
According to Sachdeva, even as gold prices have surged to record highs in 2025, the performance of jewellery stocks has remained mixed because these companies face a very different set of dynamics.
In 2025, many jewellery stocks have posted weak or negative year-to-date returns, with only a handful of strong, efficiently run brands standing out. Meanwhile, gold-focused NBFCs have gained significantly from the surge in gold prices, as improved valuations strengthen loan-to-value cushions and boost profitability, triggering a sharp rally in gold-lending firms, according to analysts.
“Looking ahead, gold prices are expected to witness further strength in 2026, supported by easing global monetary policy, sustained central-bank buying, steady inflows into gold ETFs, the broader de-dollarization theme, and concerns around the mounting U.S. debt burden, though short-term corrections may occur as geopolitical risks fade or the dollar rebounds,” Sachdeva said.
Gold jewellery has an average PED of -0.6, i.e. if price rises by 10%, quantity demanded falls by 6% and if price falls by 10%, quantity demanded rises by 6%, indicating that despite increase in gold price, the industry is expected to be able to sustain value growth.
“Amid volatile gold prices, we believe that companies with strong business visibility, operational stability, strong design agility, automation-driven production and flexibility to move across karat categories will not be much impacted and should be considered as strong investment opportunities,” according to Ashutosh Murarka and Heet Chheda of Choice Institutional Equities.
Is it right time to invest in jewellery stocks?
Sugandha Sachdeva of SS WealthStreet further added that any pullback in gold prices could actually revive consumer demand and support margin improvement, particularly for players with strong brands, consistent margins, prudent hedging practices, and innovative product strategies for jewellery companies.
She explained that investing in gold-related equities requires a stock-specific approach rather than assuming that jewellery stocks will mirror gold price movements.
“Investors should consider accumulating quality names on market dips and look to participate in the long-term structural bull run in gold while acknowledging the various company-level risks embedded in jewellery stocks,” Sachdeva said.
Which jewellery stocks to buy?
Anil R of Geojit Investments believes that organised retailers like Titan and Kalyan Jewellers are likely to gain from festive buying during the upcoming wedding season.
“In India, the October–March wedding season—driving 40–50% of annual jewellery sales—continues to sustain demand despite price swings. Organized players such as Titan and Kalyan Jewellers benefit from festive momentum and premiumization, supporting margin stability. Jewellery stocks remain attractive in the medium term, supported by healthy earnings, seasonal tailwinds, and the ongoing shift toward organized retail, even as short-term performance may fluctuate with gold price movements,” R said.
Meanwhile, Choice Institutional Equities have initiated coverage on Shringar House of Mangalsutra and Shanti Gold International. The brokerage firm says that both are well-positioned to capitalise on the structural shift from the unorganised to the organised jewellery segment, supported by expanding retail networks, expanding manufacturing capabilities, growth capital through the IPO proceeds and rising consumer preference for hallmarked and certified jewellery that enhances trust and transparency.
Shringar House of Mangalsutra
One of the leading player in the mangalsutra segment, the company holds a 6% market share in 2023 and is projected to rise to 10% by 2026, according to Choice Instititional. The company is expanding its pan-India supply chain to capture demand from unorganised and underserved tier-2 to tier-4 markets. The company’s strong B2B positioning is reinforced by its long-standing relationships with India’s top jewellery brands, including Titan (Tanishq), Malabar Gold, etc.
Shanti Gold International
The company holds a strong position in the bridal jewellery segment, which constitutes nearly 52% of India’s overall jewellery demand — providing it with a key competitive edge. The company is expanding its capacity to 3,900 kg with a new Jaipur facility focused on machine-made plain gold jewellery. Its strength is further reinforced by robust in-house design capabilities, backed by a team of over 80 skilled designers.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
