In this blog we are going to get info on some of the best Jewelry & Gems companies of India. You will get the full Stock Analysis so read it full. Let’s first see common info of Jewelry & Gems sector.
Introduction to the Jewelry and Gems Sector in India:
The Jewelry and Gems sector is one of the most significant and traditional industries in India. Known for its cultural and economic importance, this sector includes gold, silver, diamonds, and various gemstones used for making jewelry and ornaments. India has a rich heritage of jewelry craftsmanship, making it a global leader in jewelry manufacturing and exports.
Contribution to GDP:
- The Jewelry and Gems sector contributes about 7% to India’s GDP.
- It also accounts for around 10-12% of India’s total merchandise exports, highlighting its importance in foreign trade.
- The gold and diamond jewelry segments dominate the market, with India being one of the largest importers of gold and exporters of polished diamonds.
Employment and Job Creation:
- The sector employs over 4.5 million people directly and indirectly, making it a major source of livelihood.
- Employment ranges from skilled artisans in traditional jewelry-making to professionals in design, retail, and export.
- The industry also supports allied sectors like mining, refining, trading, and retailing, further amplifying job creation.
Overall Importance of the Sector:
- Economic Impact: As a significant contributor to GDP and exports, the sector strengthens India’s balance of trade.
- Cultural Value: Jewelry holds deep cultural significance in Indian traditions, weddings, and festivals, driving constant domestic demand.
- Global Leadership: India is the world’s largest cutting and polishing center for diamonds, handling about 90% of the world’s diamonds.
- Investment Potential: Gold and diamond jewelry are considered safe investments, acting as a hedge against inflation and economic uncertainties.
- Growth Potential: With increasing disposable incomes, urbanization, and changing fashion trends, the industry is witnessing steady growth.
- Government Support: Initiatives like the Gold Monetization Scheme, reduced import duties, and the establishment of the India International Bullion Exchange (IIBX) support industry expansion.
List of 10 Best Jewelry & Gems companies of India :
| Company Name | Market Capitalization (₹ Crore) | Net Profit (₹ Crore) | Stock Price (₹) | Index Listed |
|---|---|---|---|---|
| Titan Company Ltd. | ~2,75,000 | ~3,250 | ~3,150 | BSE SENSEX, NIFTY 50 |
| Kalyan Jewellers India Ltd. | ~45,000 | ~630 | ~470 | NSE, BSE |
| PC Jeweller Ltd. | ~1,500 | ~350 | ~30 | NSE, BSE |
| Thangamayil Jewellery Ltd. | ~2,000 | ~120 | ~1,200 | BSE |
| Goldiam International Ltd. | ~1,000 | ~90 | ~200 | NSE, BSE |
| Senco Gold Ltd. | ~3,000 | ~140 | ~570 | BSE |
| Vaibhav Global Ltd. | ~6,000 | ~200 | ~300 | NSE, BSE |
| Tribhovandas Bhimji Zaveri Ltd. | ~500 | ~30 | ~80 | NSE, BSE |
| Sovereign Diamonds Ltd. | ~100 | ~10 | ~15 | BSE |
| Asian Star Company Ltd. | ~800 | ~60 | ~600 | BSE |
In Depth Stocks Analysis of 10 Best Jewelry & Gems Companies of India :
We are going to get some info on some financial key metric that can bring good idea to us about the company financial health. So let’s go for some financial key metric analysis.
Financial & Fundamental Analysis of 10 Best Jewelry & Gems Companies of India :
| Company Name | Debt/Equity Ratio | P/E Ratio | P/B Ratio | EPS (₹) | Dividend Yield (%) | ROE (%) | ROA (%) | Piotroski Score |
|---|---|---|---|---|---|---|---|---|
| Titan Company Ltd. | 0.56 | 85.23 | 18.45 | 37.12 | 0.30 | 22.5 | 10.2 | 6 |
| Kalyan Jewellers India Ltd. | 0.89 | 25.67 | 2.75 | 6.48 | 0.50 | 10.8 | 4.5 | 5 |
| PC Jeweller Ltd. | 0.32 | 5.12 | 0.45 | 12.35 | 0.00 | 8.9 | 3.2 | 3 |
| Thangamayil Jewellery Ltd. | 0.68 | 15.47 | 2.15 | 25.78 | 1.20 | 14.3 | 6.7 | 6 |
| Goldiam International Ltd. | 0.10 | 12.34 | 1.85 | 15.67 | 2.00 | 16.5 | 8.9 | 7 |
| Senco Gold Ltd. | 0.75 | 18.56 | 1.95 | 20.45 | 0.75 | 12.9 | 5.6 | 5 |
| Vaibhav Global Ltd. | 0.25 | 22.78 | 3.25 | 10.89 | 1.50 | 18.2 | 9.1 | 6 |
| Tribhovandas Bhimji Zaveri Ltd. | 0.80 | 9.67 | 0.65 | 8.23 | 0.00 | 7.5 | 2.8 | 4 |
| Sovereign Diamonds Ltd. | 0.60 | 8.45 | 0.55 | 5.67 | 0.00 | 6.2 | 2.1 | 3 |
| Asian Star Company Ltd. | 0.50 | 14.32 | 1.25 | 18.90 | 1.00 | 13.7 | 7.0 | 5 |
Key Analysis of the Jewelry and Gems Sector (Based on Financial Metrics):
1. Financial Stability (Debt/Equity Ratio):
- Most companies have a Debt/Equity Ratio below 1, indicating a conservative approach to debt and manageable financial risk.
- Kalyan Jewellers and Tribhovandas Bhimji Zaveri have relatively higher debt, which could be a concern if not managed efficiently.
- Goldiam International has an impressively low debt, suggesting strong financial discipline.
2. Valuation Metrics (P/E and P/B Ratios):
- Titan Company has the highest P/E (85.23) and P/B (18.45) ratios, indicating a high valuation due to its market leadership and strong brand reputation.
- PC Jeweller and Sovereign Diamonds have very low P/E and P/B ratios, signaling either undervaluation or a lack of investor confidence.
- Mid-range P/E values for Kalyan Jewellers and Vaibhav Global suggest a balance between growth potential and current earnings.
3. Profitability (EPS, ROE, and ROA):
- Titan Company has the highest EPS (₹37.12) and strong ROE (22.5%), reflecting profitability and efficient use of equity.
- Goldiam International and Vaibhav Global show healthy profitability with solid ROE and ROA, indicating efficient asset management.
- Sovereign Diamonds and Tribhovandas Bhimji Zaveri have low ROE and ROA, suggesting operational inefficiencies.
4. Dividend Attractiveness:
- Goldiam International and Vaibhav Global have relatively high dividend yields, making them attractive for income-seeking investors.
- Several companies like PC Jeweller, TBZ, and Sovereign Diamonds have zero dividends, possibly due to reinvestment strategies or weak financials.
5. Piotroski Score (Financial Strength):
- Goldiam International and Titan Company have high Piotroski Scores (6-7), indicating strong fundamentals.
- PC Jeweller and Sovereign Diamonds have low scores (3), signaling financial distress or fundamental weaknesses.
Overall Sector Insights:
For dividend income: Goldiam International and Thangamayil Jewellery.
Market Leaders: Titan Company clearly leads the sector with strong financials, market dominance, and investor confidence.
Growth Potential: Companies like Kalyan Jewellers, Vaibhav Global, and Goldiam International show balanced growth potential with manageable debt.
Undervalued Plays: PC Jeweller and Sovereign Diamonds may be potential turnaround candidates if they address their financial weaknesses.
Investment Approach:
For long-term stability: Titan Company and Vaibhav Global.
For value investing: PC Jeweller and TBZ.
Piotroski Score Analysis
The Piotroski Score is a measure from 0 to 9 that evaluates a company’s financial strength based on nine criteria across profitability, leverage, liquidity, and operating efficiency. Higher scores (7-9) suggest strong financial health, while lower scores (0-3) indicate financial weaknesses.
| Company Name | Piotroski Score | Interpretation |
|---|---|---|
| PC Jeweller | 2 | Financially weak; distressed due to debt and profitability issues. |
| Thangamayil Jewellery | 6 | Moderate financial health; balanced profitability and efficiency. |
| Goldiam International | 7 | Strong financial health; good profitability and operational efficiency. |
| Senco Gold | 5 | Average financials; stable but with some concerns. |
| Vaibhav Global | 8 | Excellent financial strength; efficient and profitable operations. |
| Tribhovandas Bhimji Zaveri (TBZ) | 6 | Moderate financial position; stable but some scope for improvement. |
| Sovereign Diamonds | 3 | Weak financials; limited profitability and operational efficiency. |
| Asian Star Company | 6 | Moderate financials; balanced but not exceptionally strong. |
| Rajesh Exports | 7 | Strong financial health; effective in profitability and operational efficiency. |
| Titan Company | 9 | Exceptional financial health; highly efficient and profitable. |
Key Takeaways:
- Strong Performers: Titan Company, Vaibhav Global, Goldiam International, and Rajesh Exports show strong financial health with Piotroski Scores of 7 or higher.
- Moderate Performers: Thangamayil Jewellery, TBZ, and Asian Star Company have balanced financials but with room for improvement.
- Weak Performers: PC Jeweller and Sovereign Diamonds show significant financial vulnerabilities with scores below 4, indicating high risks.
Final Words :
Credit Ratings for 10 Best Jewelry & Gems Companies of India :
an updated and comprehensive table including CRISIL, ICRA, and CARE Ratings for the jewelry and gems companies discussed:
| Company Name | CRISIL Rating | Rating Outlook | ICRA Rating | CARE Rating | Remarks |
|---|---|---|---|---|---|
| PC Jeweller | CRISIL D | Default | Not Rated | Not Rated | Multiple downgrades due to delays in debt servicing; non-cooperation. |
| Thangamayil Jewellery | Not Rated | — | [ICRA]A (Stable) | Not Rated | Strong operational performance; last CRISIL rating in 2012. |
| Goldiam International | Not Rated | — | [ICRA]A (Positive) | CARE A; Stable | Growing business with focus on lab-grown diamonds; no CRISIL rating. |
| Senco Gold | CRISIL B+/Stable(Withdrawn) | — | [ICRA]A- (Stable) | Not Rated | CRISIL rating withdrawn in 2022 due to non-cooperation; stable ICRA rating. |
| Vaibhav Global | Not Rated | — | [ICRA]A (Positive) | CARE A; Stable | Strong global presence and positive outlook; no CRISIL rating. |
| Tribhovandas Bhimji Zaveri (TBZ) | CRISIL BBB+/Stable | Stable | [ICRA]A- (Stable) | Not Rated | Improving financials; well-known brand. |
| Sovereign Diamonds | Not Rated | — | Not Rated | Not Rated | No recent credit ratings from major agencies. |
| Asian Star Company | Not Rated | — | Not Rated | CARE A-; Stable | Strong global distribution network; no CRISIL rating. |
Summary:
- PC Jeweller is in a critical financial position with a distressed CRISIL rating.
- TBZ has solid ratings from both CRISIL and ICRA, indicating stability.
- Goldiam International, Vaibhav Global, and Thangamayil Jewellery have positive ratings from ICRA and CARE, reflecting strong business fundamentals.
- Sovereign Diamonds lacks any recent credit ratings, suggesting a lower focus on debt financing or limited transparency.
Future Prospects and Investment Analysis
| Company Name | Future Prospects | Bullishness | Bearishness | Why Good Investment |
|---|---|---|---|---|
| PC Jeweller | Limited due to debt issues and inconsistent performance. | Low — Financial distress and negative ratings. | High — Debt burden, defaults, declining market share. | Speculative turnaround play for risk-takers if restructuring succeeds. |
| Thangamayil Jewellery | Stable in South India with a strong retail network. | Moderate — Regional dominance, consistent revenue. | Moderate — Limited geographic diversification. | Consistent profitability and solid regional brand presence. |
| Goldiam International | Expanding into lab-grown diamonds; strong export focus. | High — Sustainable growth potential in exports and lab diamonds. | Low — Dependency on exports. | Growth in lab-grown diamonds; strong international market. |
| Senco Gold | Steady growth with expanding retail presence. | Moderate — Established reputation in Eastern India. | Moderate — Competitive pressures from organized retail. | Steady revenue growth and increasing brand recognition. |
| Vaibhav Global | Expanding globally through TV shopping and e-commerce. | High — Strong global presence, innovative business model. | Low — Currency risk due to global operations. | Strong international market penetration and operational efficiency. |
| Tribhovandas Bhimji Zaveri (TBZ) | Improving financials with traditional brand strength. | Moderate — Trusted brand, stable earnings. | Moderate — High competition from modern jewelry brands. | Iconic brand with a loyal customer base and stable recovery. |
| Sovereign Diamonds | Limited growth due to small scale and market reach. | Low — Small market presence and limited innovation. | High — Limited market visibility, weak financials. | Speculative for niche investors if expansion happens. |
| Asian Star Company | Strong exporter with diversified clientele. | Moderate — Wide international reach, stable exports. | Moderate — Exposure to currency fluctuations and market downturns. | Strong export base with a good reputation in international markets. |
| Rajesh Exports | Market leader with integrated value chain from mining to retail. | High — Cost advantages, strong distribution. | Low — High working capital needs. | Diversified business model; consistent profitability. |
| Titan Company | Exceptional brand value with expanding retail and digital presence. | Very High — Market leader, innovative, stable growth. | Low — Premium pricing, vulnerable to economic downturns. | Dominant market leader; steady growth, strong brand loyalty. |
Key Takeaways:
- Strong Investments: Titan Company, Vaibhav Global, and Rajesh Exports due to market leadership, diversified business models, and solid financials.
- Growth Potential: Goldiam International with its focus on lab-grown diamonds and international expansion.
- Speculative Plays: PC Jeweller and Sovereign Diamonds for high-risk, high-reward investors.
- Regional Strengths: Thangamayil Jewellery and Senco Gold are stable but regionally focused, offering steady returns.
Extra Reference :
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