Best Gold Stocks in India to Invest in 2024
Investing in gold has been a sworn-upon investment option in Indian households for decades. The only change today is that people have changed from investing solely in physical gold to investing in gold stocks & bonds. If you plan to invest in gold in 2024, gold stocks are something you should highly consider.
But why should you invest in gold stocks, and which ones are the best in 2024? We are here to answer all your questions.
Why are gold stocks important for your investment?
Traditionally, investing in gold stocks was considered a solution for inflation. When inflation rises, currency values often decline, and historically, major currencies consistently lose value compared to gold.
If we take up recent news, gold stock prices have shown impressive growth, doubling in the last five years and quadrupling in a decade. In a country like India, where many savings options struggle to yield substantial returns, gold is an appealing choice for your future investment plans.
Upon examining the annualised return of gold stocks to buy over a decade, we find that gold stocks genuinely offer a return on investment, preserving and potentially increasing your purchasing power during inflation.
What are the best gold stocks to buy in 2024?
Thangamayil Jewellery Ltd
Thangamayil Jewellery Ltd is a network of retail stores spread across Tamil Nadu districts. The company focuses on gold, silver, diamonds, and platinum, with gold sales driving its main revenue. Additionally, TMJL operates four manufacturing units, employing in-house goldsmiths to create trendy designer jewellery that keeps innovation alive.
The company has delivered good profit growth of 28.4% CAGR over the last 5 years and has maintained a dividend payout of 24.0%, which projects potential growth in the future.
Goldiam International Ltd
Established in 1986, Goldiam International Ltd specialises in manufacturing and exporting gold and diamond jewellery worldwide. As an India-based, fully integrated OEM partner for retailers, the company has three decades of expertise in crafting exquisite and luxurious diamond jewellery.
Goldiam is a nearly debt-free company and has yielded a good profit growth rate of 32.7% CAGR over the last 5 years. It has also been maintaining a healthy dividend payout of 22.4%, ensuring your investments have the potential to grow with them.
Titan Company Ltd
Titan Company Ltd, a joint venture between TATA Group and Tamilnadu Industrial Development Corporation (TIDCO), is a highly esteemed lifestyle company in India. It holds leadership positions in watches, jewellery, and eyewear, driven by trusted brands and a distinctive customer experience.
Titan has delivered a profit growth of 23.9% CAGR over the last 5 years and has also maintained a dividend payout of 31.6%. It is a prestigious market leader, making it an ideal investment choice.
D.P. Abhushan Ltd
D. P. Abhushan Ltd operates in the manufacturing, selling, and trading of jewellery and precious metals, along with engaging in windmill-based power generation. The renowned jewellery store, with additional fully operational outlets in Indore, Bhopal, and Udaipur, is a respected and notable name in the industry.
The profit growth rate over the last 5 years has been 40.9% CAGR, and the company has maintained a good return on equity (ROE) track record of 31.4% in 3 years, which is a great sign of future growth.
Kalyan Jewellers India Ltd
Kalyan Jewellers India Ltd is a leading jewellery retailer based in Kerala, renowned for its diverse range of gold and studded jewellery. The company introduced gold diamond jewellery in Kerala for the first time and, as of FY20, stands among the largest jewellery retailers in India based on revenue.
Over the last 5 years, the company has delivered good profit growth of 29.6% CAGR and provides you with an ROE of 13.5% of your investments. Being one of the most prestigious leaders in the gold market in India, the company is expected to grow further.
Conclusion
If you are looking to diversify your portfolio or looking for long-term investment options, gold stocks can match your requirements. However, like the prices of physical gold, the gold stock market fluctuates often. So, if you plan to invest in gold stocks, you need to stay on top of market trends and changes to ensure every investment fits into your risk tolerance levels and aligns with your future financial goals.
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