For some time now amid festivities and gains in the bullion prices which got its prime trigger as the weakening dollar and inflationary concerns, gold and jewellery company stocks in India have been on the northward journey. In a month’s time, some of these counters meted gains to the tune of up to 27 percent.
Much like other sectors and in the run up to historical high prices of gold seen last year and other stock-specific fundamentals, some of the counters in the space have multiplied investors wealth. Here we list such stocks from the space that boosted investors’ wealth.
1. Goldiam International:
The stock last closed at a price of Rs. 955.80 per share. The stock is included in the category of Diamond cutting and jewellery and precious metals company. The stock last a year back closed at a price of rs. 142 implying gains of 573% in a year’s time.Goldiam International is a Mumbai-based exquisite exporter of diamond jewellery. The company is amongst the leading jewellery maker that is fully backward integrated.
This is a small cap scrip which zoomed substantially after its board proposed a buyback of shares of up to 3.8 lakh equity shares at a price of Rs. 1200. This is again a gain of 26 percent from the current price levels.
2. Thangamayil Jewellery:
This stock in a 1-year time has given a return of 237 percent while on a YTD returns are at 125%. This company holds a chain of retail jewellery showrooms across Tamil Nadu and offers a complete range of gold, silver, diamond and platinum jewellery.
This is again a small cap scrip that has almost trebled investors wealth.
The company’s revenue have inched higher in the last fiscal and its debt to equity ratio has been at 0.9, while its RoE has been at 29.06 which is astounding given the returns in 2020 of 20 percent.
3. Renaissance Global:
This is again a diamond cutting and jewellery company with 1-year return of 284 percent. Over the years of its operations, the company has transformed from a jewellery manufacturer to a global lifestyle products company.
The company is a licensee for two brands- Disney and Hallmark. The company’s speciality jewellery retailer includes Fred Meyer, Helzberg, Joyalukkas, Malabar, Signet Jewellers among others.
4. Tribhovandas Bhimji Zaveri Ltd.
The company is a established retail jewellery chain in India with presence spanning some 156 years. This is again a small cap scrip that in a year’s time has given over 130 percent returns.
Promoter holding in the firm remains unchanged at 74.12% in Sep 2021 quarter. Also, FII/FPI have increased holdings from 0.78 percent to 1.38 percent in the September quarter.
5. Radhika Jeweltech:
The company’s stock which last closed at Rs. 86.3 per share gave 405 percent in the last one year. This company originally started as a proprietorship concern and MR Ashokkumar Zinzuwadia in the year 1987. They were in the business of Jewellery and continued upto June 302014. Later they started operations as a partnership firm for undertaking the business of manufacture resale export import of gold, silver.
Other than these there are stocks of Darshan Orna, Golkunda Diamonds, Goenka Diamond, Swarna Sarita Gems, Sovereign Diamonds etc. also produced multibagger returns during the bull run which continues till now..
Should you be investing in jewellery stocks?
Given the lost ground in the pack amid the Covid 19 outbreak, retailers have been on a strong footing captivating on the current festive season. Also, as the long term outlook for the bullion holds promise and also the near to medium outlook for gold is promising given the uncertainty, inflationary trend, gold investments shall in any form be a perfect inflationary hedge as well as store of value.
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Original news source Credit: www.goodreturns.in