Gold Stocks to Buy: The sudden 5% fall in gold prices between Diwali-Bhai Dooj has surprised investors. While gold showed a rise of up to 50% in the last one year, jewelery sector stocks could not catch up. Now there is hope for recovery in some cases.
Gold Rate vs Jewelery Stocks: While everyone is busy buying gold during the festive season, the sudden 5% fall in gold rates has surprised investors. Gold prices dropped from record highs during big festivals like Diwali and Bhai Dooj. Now the question is arising, will this decline affect the shares of jewelery companies also? While gold showed a spectacular rally of up to 50% in the last one year, the stocks in the jewelery sector could not catch the same pace. Shares of many companies have fallen by 30%-50%. In such a situation, know which jewelery stocks can give good returns and what are the brokerage houses saying?
Senco Gold Share Price Target
Senco Gold shares have seen the biggest decline compared to the sector in the last one year. However, the company management believes that many interesting changes are being seen on the demand side. The company’s MD and CEO Suvankar Sen said that the demand for diamond and platinum jewelery among customers is increasing rapidly. At the same time, 9K and 14K gold jewelery is also being liked very much by the youth and first-time buyers. Senco Gold’s ‘Old Gold Exchange Scheme’ and ‘Savings-Based Initiatives’ have played an important role in attracting new customers. The company is now focusing more on design and affordable variety, due to which the participation of the youth is increasing. Brokerage firm Motilal Oswal has given a neutral rating on this stock and has set a target price of Rs 385, which is currently at Rs 327.50. The brokerage believes that the company has created a good balance of festive and bridal collections in its inventory, and has also included 9K jewelery along with lightweight jewelery to cater to the changing preferences of consumers.
PN Gadgil Jewelers Share Price Target
PN Gadgil Jewelers Limited is the second largest organized jeweler in Maharashtra and its regional expertise makes it different from the rest. Major brokerage houses like brokerage firms Motilal Oswal and Nuvama have given ‘buy’ rating on this stock. Motilal Oswal believes that this stock can reach Rs 825 in the coming 12 months, while Nuvama has given a target of Rs 860. Currently this share is at Rs 682.60, which means an increase of up to 31% is possible from here. The company is rapidly expanding its network from Maharashtra to North India. Additionally, the company is adding high-margin studded jewelery to its product portfolio, thereby improving revenue share. This is being considered as a step to strengthen the growth of the company in the long run.
Sky Gold & Diamond Share Price Target
Shares of Sky Gold & Diamond Limited are one of the few jewelery stocks that have given positive returns in the last one year. The stock has increased by 8% during this period. Brokerage house Nuvama has recently given a ‘buy’ rating on this stock and a target of Rs 450 per share, which is currently at Rs 361. According to Nuvama, Sky Gold is a leading B2B designer and gold jewelery manufacturer, whose clients include the largest jewelery retailers in the country. The company has strengthened its business in the last two years through expansion into new categories and acquisitions. Additionally, its ‘Advanced Gold Model’ and expansion of export business can enhance the efficiency and profitability of the company in the times to come.
Disclaimer: This article is for information only. Any information or suggestion given herein is not investment advice. Investing in the stock market is subject to risk. Before investing, please consult your financial advisor or market experts.
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