Jewellery stock to buy: Jewellery stocks are entering the festive season with a mixed scorecard, as stronger-than-expected September-quarter business updates have supported sentiment towards select companies. Investors now await September quarter results for the jewellery stocks.
Investors are weighing the sustainability of recent rallies against elevated gold prices, inflationary pressures and uncertainty over interest rates amid the West Asia crisis. Festive demand, premiumisation and gains in the organised jewellery market have supported business momentum, although the shift in the festive calendar has affected quarterly comparisons.
Over the past three months, Sky Gold and Diamonds shares have surged 56%, while PC Jeweller has gained 40%. Kalyan Jewellers has advanced 20%. In contrast, Thangamayil Jewellery has declined 26%, Goldiam International has fallen 19%, Senco Gold has shed 8% and Titan Company has slipped 2%.
September-quarter business updates from leading jewellery companies indicated continued revenue growth, although the timing of festive demand influenced performance towards the end of the quarter. The updates also highlighted differences in operating momentum and balance-sheet progress, making company-level metrics important when comparing investment opportunities.
Kalyan Jewellers reported 26% year-on-year growth in consolidated revenue, supported by healthy operating momentum and same-store sales growth (SSSG). The company recorded this growth despite a high base, as all nine days of Navratri fell in the second quarter of the previous year.