Top Gold Stocks in India (2024): Leading Gold Sector Companies on Nifty

Gold has been an integral part of the Indian economy and a foundation of savings in many Indian households. Therefore, by describing the resilience of the gold commodity, the World Gold Council (WGC) states that the investment demand for gold stocks has been increasing since 2001 by 15% on an annual basis. 

Thus, the gold industry has itself become an inflexible point between the rising prices of gold shares and the changing industry trends. So, the question is whether you should invest in the gold stock price in India. 

Well, the simple answer to this question is an English proverb, ‘When we have gold, we are in fear; when we have none, we are in danger.’ 

While buying physical gold has been a traditional way of gold investing, gold-related stocks in India have emerged as a popular alternative recently. In this blog, we will explore why investing in gold share prices in India is a good idea and what gold investing in India can offer you.

List of Best Gold Share Prices in India

India’s gold stock market has been a significant player in the global gold industry. As such, the popular gold stock prices in India are closely watched by investors and traders worldwide. Let’s take a look at some of the gold stock prices of popular companies.

Name	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio	1Y Return (%)	Net Profit Margin (%)	5Y Avg Return on Investment (%)
Titan Company Ltd	334,156.09	3,767.00	95.58	12.80	6.77	14.57
Kalyan Jewellers India Ltd	73,841.39	699.95	123.61	205.19	3.21	8.96
Ethos Ltd	8,281.98	3,361.90	99.42	96.41	8.14	9.52
Thanga Mayil Jewellery Ltd	6,186.98	2,254.80	50.20	81.64	3.22	13.55
KDDL Ltd	4,370.50	3,194.60	42.57	58.35	7.23	8.63
Goldiam International Ltd	4,120.69	373.85	45.38	188.58	14.72	14.44
D P Abhushan Ltd	3,840.35	1,665.35	62.08	209.89	2.64	17.11
Sky Gold Ltd	3,734.51	2,639.20	92.23	832.58	2.31	11.64
Tribhovandas Bhimji Zaveri Ltd	2,186.10	327.60	40.17	190.55	2.35	8.02
Radhika Jeweltech Ltd	1,505.33	126.27	30.39	244.06	9.08	10.90

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data from the list of the top 10 gold companies in India is from 16th September 2024. The list of best gold stocks in India is filtered on the Tickertape Stock Screener.

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

What are Gold Stocks?

Gold in its purest form is a bright, slightly reddish yellow, dense, soft malleable and ductile metal. Humans have valued gold for its lustrous colour and its resistance to tarnishing. Because of its occurrence in nature in minute amounts, gold is an expensive metal. Apart from being considered a symbol of immortality in mythology, today, gold is lent and borrowed in the same way as money. Thus, apart from having a form of physical gold, many have turned to invest in gold-related companies in the stock market. Gold shares in India are stocks of companies that are engaged in the exploration, mining, and refining of gold. These companies are typically involved in various stages of the gold mining process, including the exploration of potential mining sites, the extraction of gold from the ground, and the processing and refining of the metal for sale.

You can buy shares of these companies on stock exchanges and benefit from the profits generated by the gold mining stock industry. Additionally, the value of gold stocks is directly linked to the gold share price NSE India and can fluctuate based on supply and demand, mining costs, and global economic conditions. Therefore, investment in gold stocks in India can be a way to gain exposure to the gold stock market without owning physical gold and can offer you diversification and potential for long-term growth.

Top Gold Companies in India: A Brief Overview

Let’s review the best gold stocks to invest in India from our curated gold stocks list:

Titan Company Ltd

Founded in 1984, Titan Company Ltd is one of India’s largest lifestyle companies and is part of the Tata Group. It operates in segments such as watches, jewellery, and eyewear, with well-known brands like Tanishq and Fastrack. Titan Company Ltd is the best gold company in India, as per the list and filters above. The company has a market capitalisation of Rs. 334,156.09 cr., with a closing price of Rs. 3,767.00. The PE ratio is 95.58, reflecting a high valuation. The 1-year return is 12.80%, the net profit margin is 6.77%, and the 5-year average return on investment is 14.57%.

Kalyan Jewellers India Ltd

Established in 1993, Kalyan Jewellers is one of India’s largest jewellery retail chains, known for its vast collection of gold, diamond, and platinum jewellery. The company has a market cap of Rs. 73,841.39 cr. and a closing price of Rs. 699.95. The PE ratio is 123.61, indicating high investor expectations. The stock has delivered a 1-year return of 205.19%. The net profit margin stands at 3.21%, and the 5-year average return on investment is 8.96%.

Ethos Ltd

Founded in 2003, Ethos Ltd is a premium luxury watch retailer in India, offering a wide range of global luxury brands. The company has a market cap of Rs. 8,281.98 cr. and a closing price of Rs. 3,361.90. Its PE ratio is 99.42, suggesting a premium valuation. The 1-year return is 96.41%, the net profit margin is 8.14%, and the 5-year average return on investment is 9.52%.

Thanga Mayil Jewellery Ltd

Thanga Mayil Jewellery Ltd, established in 2000, operates retail jewellery stores in South India, primarily dealing in gold, silver, and diamond ornaments. The company has a market capitalisation of Rs. 6,186.98 cr., with its stock priced at Rs. 2,254.80. The PE ratio is 50.20, and it has delivered a 1-year return of 81.64%. The net profit margin is 3.22%, and the 5-year average return on investment is 13.55%.

KDDL Ltd

Founded in 1981, KDDL Ltd is a manufacturer of watch components and precision-engineered products, serving both domestic and international markets. The company also operates a luxury watch retail store under the brand “Ethos.” KDDL Ltd has a market cap of Rs. 4,370.50 cr., with a closing price of Rs. 3,194.60. The PE ratio is 42.57, the 1-year return is 58.35%, the net profit margin is 7.23%, and the 5-year average return on investment is 8.63%.

Goldiam International Ltd

Established in 1986, Goldiam International Ltd is engaged in manufacturing and exporting diamond-studded gold and silver jewellery, catering to markets in the U.S., Europe, and other regions. The company has a market cap of Rs. 4,120.69 cr. and a closing price of Rs. 373.85. The PE ratio is 45.38, with a 1-year return of 188.58%. The net profit margin is 14.72%, and the 5-year average return on investment is 14.44%.

D P Abhushan Ltd

Founded in 1990, D P Abhushan Ltd is a jewellery retail company that offers a wide range of gold, silver, and diamond jewellery. The company has a market cap of Rs. 3,840.35 cr. and a closing price of Rs. 1,665.35. The PE ratio is 62.08, with a 1-year return of 209.89%. The net profit margin is 2.64%, and the 5-year average return on investment is 17.11%.

Sky Gold Ltd

Established in 2008, Sky Gold Ltd specialises in the manufacturing of gold jewellery, particularly traditional and designer gold ornaments. The company has a market capitalisation of Rs. 3,734.51 cr., with its stock priced at Rs. 2,639.20. The PE ratio is 92.23, reflecting a high market valuation. It has delivered an impressive 1-year return of 832.58%, with a net profit margin of 2.31% and a 5-year average return on investment of 11.64%.

Tribhovandas Bhimji Zaveri Ltd

Founded in 1864, Tribhovandas Bhimji Zaveri Ltd is one of India’s oldest and most prestigious jewellery retailers, known for its exquisite gold, diamond, and silver jewellery collections. The company has a market cap of Rs. 2,186.10 cr. and a closing price of Rs. 327.60. The PE ratio is 40.17, with a 1-year return of 190.55%. The net profit margin is 2.35%, and the 5-year average return on investment is 8.02%.

Radhika Jeweltech Ltd

Established in 2014, Radhika Jeweltech Ltd operates in the jewellery retail space, offering a wide range of gold and diamond jewellery. The company has a market capitalisation of Rs. 1,505.33 cr., with a closing price of Rs. 126.27. The PE ratio is 30.39, with a 1-year return of 244.06%. The net profit margin is 9.08%, and the 5-year average return on investment is 10.90%.

How to Invest in Gold Stocks in India via smallcase?

To buy gold stocks or invest in them in India can be done using smallcase, an investment platform that allows you to buy and sell themed portfolios of stocks, including gold-related stocks. Here are the steps to invest in smallcase so that you can reap the benefits of gold stocks in India:

• Opening a Demat Account: The first step is to open a demat account online with a registered stockbroker. Therefore, to hold the shares purchased through smallcase, you need a Demat account. You can open a Demat account online by providing your details and submitting the necessary documents.
• Choosing a Broker: Next, you need to choose a registered stockbroker who offers smallcase portfolios that include gold stocks. Some popular stockbrokers in India include Zerodha, HDFC Securities, and ICICI Direct. Thus, you can compare the brokerage fees and services offered by different brokers. In order to choose the one that suits their needs.
• Placing an Order: Once you open the demat account and choose a broker, you can log in to the smallcase platform and select a gold-related smallcase portfolio like Equity and Gold. The portfolio will include gold stocks, and the weightage of these stocks will be based on the portfolio strategy.

At last, you can choose the amount that you want to invest and place an order. The broker will execute the order and credit the shares to your Demat account.

Other Ways to Invest in Gold Stocks

There are multiple ways you can easily invest in gold in India. Hence, we have listed some of the best ways to invest in gold for you-

• Gold ETFs: Exchange-traded funds (ETFs) that track the price of gold are a popular way to invest in gold share names. Gold ETFs invest in physical gold or gold futures and offer you the ability to buy and sell shares like any other stock. 
• Gold Mutual Funds: Gold mutual funds are another way to invest in gold stock in India. The funds are invested in gold mining companies in India that are involved in mining and the production of gold mining stocks. Their performance is affected by factors such as market conditions and company-specific risks, although it is generally tied to the price of gold. So, find the best gold mutual fund to invest in, today!
• Gold Mining Stocks Companies: Investing in individual mining gold company stocks is another option for gaining exposure to gold stock India. These top gold companies in India are involved in the exploration, development, and production of gold, and their performance is tied to the price of gold as well as their own operational and financial performance.

The Indian Gold Market is in its Golden Age

Considered the material safe haven for people all around the world, Gold was discovered by an Egyptian alchemist named Zosimos. 

While every middle-class household might still indulge in debates on ‘Gold vs stock market’, that’s not the case with most investors. In recent years, the Indian gold stock market has witnessed significant growth, driven by rising demand from both individual investors and institutional investors. The market has also been influenced by the government’s policies, such as the gold import restrictions and the introduction of the Gold Monetization Scheme. In addition, the demand for gold in India is heavily influenced by cultural and religious factors, such as festivals and weddings.

The future projections of gold stocks India remain positive. The country’s growing middle class and increasing disposable income are expected to drive demand for gold, particularly for investment purposes. The Indian government’s policies are also expected to have a positive impact on the gold rate in share market. The introduction of the Gold Monetization Scheme aims to mobilise the country’s idle gold and reduce gold imports, which could lead to increased supply and lower prices.

Furthermore, the growing trend of digital gold is also expected to boost the gold stock market in India. Digital gold allows you to buy and sell gold in small denominations and has recently gained popularity. If you are now wondering, ‘which gold company is best in India?’ then look no further, we’ve brought you a curated list of gold investment companies.

Why Invest in Gold Stocks?

Investing in gold mining stocks in India has traditionally been driven by its role as a hedge against inflation. Gold’s unique property as an inflation hedge becomes more apparent in the long term. When inflation rates increase, the value of a currency tends to decline. Historically, major currencies have consistently depreciated in comparison to gold over extended periods.

In recent years, gold stock NSE prices have displayed remarkable growth, doubling in value over the last five years and quadrupling in a decade. In a country like India, where many savings instruments struggle to provide substantial returns, gold becomes an attractive option when the inflation rate surpasses prevailing interest rates.

Furthermore, when we examine the annualised return of gold stocks to buy over a decade, it consistently outpaces inflation. In practical terms, this signifies that gold stocks offer individuals a genuine rate of return, preserving and potentially increasing their purchasing power in the face of inflation.

Performance Parameters to Consider Before Investing in Gold Stocks

There are several factors that you should consider before making informed decisions when investing in gold stocks. Here are some key factors to consider:

• Risk vs. Reward: You should carefully evaluate the risk and potential rewards associated with investing in gold stocks. Thus, various factors such as geopolitical events, changes in gold stock price India, and gold mining company-specific risks can affect the performance of gold stocks, which can be volatile.
• Past Performance: You should analyse the past performance of gold stocks before investing. This can help you identify patterns and trends in the performance of individual stocks, ETFs, or best gold mutual funds in India. However, past performance is not a guarantee of future results. So you may use it as a reference point rather than a definitive guide.
• Management Quality: You should evaluate the management quality of the companies you are investing in. This can include factors such as the experience and track record of the management team, strategy, and financial position. Investors generally consider companies with strong management teams. Furthermore, solid financial positions are more attractive gold investments in share market opportunities.
• Fees and Expenses: You should consider the fees and expenses associated with investing in Indian gold company shares. ETFs and mutual funds typically charge management fees, which can eat into investment returns over time. Therefore, you should compare the fees and expenses of different investment options. Then, choose those that offer competitive fees and a good value proposition.

How to Choose the Best Gold Stocks for Investments?

When choosing the best gold stocks in India, it’s crucial to conduct thorough research on gold mining companies listed on Indian stock exchanges. Evaluate their financial performance, production potential, and regulatory environment. Stay updated on market trends affecting gold prices and consider diversifying your investment across multiple gold stocks to manage risk effectively.

Tips for Gold Share Investing

Gold share investing can be an effective way to diversify an investment portfolio and potentially benefit from rising gold prices. To increase your chances of success, you should approach gold share investing with a strategy. Here are some tips for successful gold portfolio investing:

• Stay Informed: Staying informed about gold share prices and gold mining stocks in India is crucial for successful gold share investing. This includes monitoring gold prices, keeping up with industry news, and staying informed about individual gold mining stocks India. You can use this information to make informed investment decisions and adjust your portfolios as needed.
• Don’t Put Too Much Risk: It’s important to invest within one’s means and not put too much at risk. Gold share investing can be volatile, and the price of gold can fluctuate rapidly. You should set realistic investment goals and invest only what you can afford to lose without affecting your financial well-being.
• Diversify Your Portfolio: Diversification is key to successful investing, and gold share investing is no exception. You should consider diversifying the chosen portfolio by investing in multiple gold mining stocks or gold-related funds. This can help reduce the risk associated with individual stock performance and provide a more balanced portfolio.

As always, investors must do their own research and/or consult their financial advisor before investing.

Features of Gold Stocks in India

Gold stocks offer investors several distinctive features that set them apart from other types of investments. Here are some key characteristics:

• Hedge Against Inflation: Gold stocks tend to perform well during times of inflation, serving as a hedge to protect investors’ portfolios against the erosion of purchasing power.
• Safe Haven Asset: Gold stocks are often considered safe haven assets, providing stability and security during times of economic uncertainty or market volatility.
• Diversification: Investing in gold stocks can help diversify a portfolio, reducing overall risk by spreading investments across different asset classes.
• Liquidity: Gold stocks are highly liquid assets, allowing investors to buy and sell them easily on the stock market.
• Exposure to Gold Prices: Investing in gold stocks provides exposure to the price movements of gold itself, allowing investors to benefit from potential increases in the price of the precious metal.

Overall, gold stocks offer investors a unique opportunity to diversify their portfolios and potentially benefit from the stability and growth of the gold market.

Risks Associated With Investments in Gold Stocks

When considering investment opportunities in gold stocks, it’s crucial to be aware of the potential risks involved. Here are some key factors to consider:

• Market Volatility: Gold prices can be highly volatile, influenced by various economic factors such as inflation rates, currency fluctuations, and geopolitical tensions. This volatility can lead to significant fluctuations in the value of gold stocks.
• Economic Conditions: The performance of gold stocks is closely tied to overall economic conditions. During periods of economic uncertainty or recession, investors may flock to gold as a safe-haven asset, driving up prices. Conversely, during periods of economic growth, the demand for gold may decline, leading to lower prices.
• Company-Specific Risks: Individual gold mining companies may face their own set of risks, including operational challenges, regulatory issues, and geopolitical instability in regions where they operate. These factors can impact the profitability and stability of gold stocks.
• Currency Risk: Gold prices are denominated in US dollars, so fluctuations in currency exchange rates can affect the value of gold stocks, especially for investors holding assets in other currencies.
• Opportunity Cost: Investing in gold stocks may involve an opportunity cost, as funds allocated to gold investments could have been invested in other assets with potentially higher returns, such as equities or bonds.

Equity and Gold: An Inverse Relationship

All that glitters is Gold, and yes, this is the English proverb even the stock market swears by. 

Well, those who have only invested in equities (ownership interest of shareholders in gold company names in India, will back us up here.

Hence, it’s an oft-stated fact that equity and gold do not go hand in hand. Meaning when the price of one goes up, the other tends to go down. Thus, you may ask why this happens. 

This is because you may often move your money from one asset class to the other as a way of diversifying your portfolio and managing risk. Thus, when the stock market is doing well, and equities are rising, naturally, you may feel more confident. Next, you’ll be willing to take on more risk, which can lead to a decrease in demand for gold. 

Conversely, when the stock market is struggling, and equities are falling, you may become more risk-averse and seek out safe-haven assets like gold, which can cause the price of gold to rise. Thus, to mitigate risks, you can invest in our Equity & Gold portfolio to avoid the hassle of moving your money here and there. This smallcase invests in Equity & Gold, fixing their weights to 70% and 30%, where you have access to large-cap companies.

Advantages of Investing in Gold Stocks 

Here are a few advantages of investing in gold stocks:

• Hedge against inflation: Gold stocks serve as an effective hedge against inflation, showing resilience during economic downturns and market volatility. It has a track record of long-term asset appreciation, making it a valuable addition to your investment portfolio.
• Diversification: Diversifying your investment portfolio is easy and convenient with gold related stocks India. 
• Low Cost: You can commence your gold investment journey with a small initial amount and save regularly for the long term.
• Liquidity: Gold stocks offer easy liquidity, allowing you to subscribe to and redeem them as needed.
• Long Term Capital Gains: Some gold funds, like SBI Gold Fund, are classified as non-equity products for tax purposes. This classification enables you to claim long-term capital gains tax benefits after holding the investment for a year.

To Wrap It Up…

Gold has been a valuable asset for centuries, and its popularity as an investment option remains strong to this day. Evaluation of the gold company share price in India of different gold mining companies is an important indicator for investors. This is because various factors influence the gold stock market.

Additionally, the gold price stock market is subject to fluctuations. Therefore, it is essential to conduct thorough research and analysis. Before investing in any gold stock, ensure that the investment aligns with one’s financial goals and risk tolerance. Thus, gold has historically shown to be a reliable long-term investment option. Additionally, it can be an excellent addition to a diversified portfolio.

Overall, you can invest in several gold stocks under one roof. How? By investing in smallcase.

At smallcase, we provide a wide range of portfolios that certainly reflect a theme, idea, or objective. Our portfolios are designed by SEBI-registered professionals and are simple to use.

So, what are you waiting for? Invest in gold through smallcase today!

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