Even with strong demand for gold and diamonds, factors like economic uncertainties, rising interest rates, and profit-booking by investors have led to significant corrections in the jewellery sector.
Several companies have seen major declines, raising concerns about whether this is a temporary setback or a deeper trend in the industry.
We have identified the biggest wealth destroyers among jewellery stocks, which have fallen up to 60% from their 52-week high. Let’s look at the top 5 jewellery stocks that have experienced these sharp declines, the reasons behind them, their impact on investors, and the outlook for the jewellery sector.
1. Senco Gold
Senco Gold is the largest organized pan-India jewellery retailer in Eastern India based on the number of stores.
In the past year, Senco Gold’s shares have dropped by 58% from their 52 week high. The stock faced selling pressure due to higher expenses from new subsidiaries and slow operational performance.
- Market Cap: 2662 Crore INR
- Current Price: ₹323.80
- 52 Week Range: ₹304.55 – ₹772.00
- P/E Ratio: 39.08
- Down from 52 Week High: 58%
The company’s EBITDA margin fell to 3.8% in Q3 FY25 from 11% in the same quarter last year, due to significant expenses related to new subsidiaries. Net profit decreased to ₹335 million from ₹1,013 million in the same quarter last year.
However, Senco Gold’s revenue has grown at a CAGR of 16% in the last five years, with net profit growing at a CAGR of 20.4%. This has resulted in healthy return ratios, with RoE at 17% and RoCE at 15.5%.
Senco Gold announced a 1:2 stock split on 31 January 2025. Despite high gold price volatility in Q3 FY25, the company achieved its highest-ever Q3 revenue of ₹20 billion, with a single-month revenue of ₹10 billion during the Dhanteras month, reflecting a robust 22% YoY growth.
Senco Gold plans to open 8-10 new showrooms in Q4 FY25, including 5-7 franchise outlets. Management is optimistic about achieving 18% YoY growth for FY25, focusing on controlling costs and enhancing diamond sales.
2. Motisons Jewellers
Motisons Jewellers sells gold, diamond, kundan jewellery, and other products, including pearls, silver, platinum, and other metals.
In the last year, shares of Motisons Jewellers have fallen by 40% from their 52 week high, mainly due to high valuation concerns and stock split adjustments. Despite the share price retreat, the company’s P/E ratio remains high at 47.4.
- Market Cap: 1,968 Crore INR
- Current Price: ₹19.93
- 52 Week Range: ₹12.71 – ₹33.80
- P/E Ratio: 45.78
- Down from 52 Week High: 40%
In November 2024, Motisons Jewellers executed a 1:10 stock split, reducing the face value of each share from ₹10 to ₹1. This move aimed to enhance liquidity and make shares more affordable but led to price adjustments and volatility.
The company’s revenue has grown at a CAGR of 13.3% in the last five years, with net profit growing at a CAGR of 56.2%. The debt-to-equity ratio was 0.3 as of 31 March 2024.
In Q3 FY25, Motisons Jewellers’ net sales grew by 33% QoQ to ₹1,450 million, with net profit increasing by 50% to ₹150 million. The company plans to expand beyond Jaipur, opening new showrooms in various areas within and outside Rajasthan.
3. Kalyan Jewellers
Kalyan Jewellers designs and sells a range of gold, studded, and other jewellery products across various price points.
In the last year, shares of Kalyan Jewellers have fallen by 36% from their 52 week high due to allegations of misconduct, promoter share pledging, market speculation, and rumors.
- Market Cap: 50,044 Crore INR
- Current Price: ₹483.20
- 52 Week Range: ₹336.05 – ₹795.40
- P/E Ratio: 75.04
- Down from 52 Week High: 36%
Social media platforms have circulated allegations suggesting misconduct involving fund managers at Motilal Oswal Asset Management Company (AMC) in relation to Kalyan Jewellers’ shares, impacting investor sentiment.
Key promoters, including TS Kalyanaraman and Ramesh Trikkur Kalyanaraman, have pledged substantial portions of their shareholdings to secure loan facilities. Kalyan Jewellers has faced various market speculations, including rumors about plans to purchase an aircraft and alleged income tax raids.
The company’s revenue has grown at a CAGR of 13.7% in the last five years, with net profit growing at a CAGR of 176%. The five-year average RoE is 9.6%, and RoCE is 10.8%.
Kalyan Jewellers aims to expand its operations in the US market, having recently opened its first showroom. The company plans to launch 30 Kalyan and 15 Candere showrooms in the current quarter and 170 showrooms in FY26.
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4. PN Gadgil Jewellers
PN Gadgil Jewellers is in the retail business of gold, silver, and diamond jewellery and is part of the PNG group, an established player in Maharashtra.
In the last year, shares of the company have fallen by 32% from their 52 week high due to quarterly profit declines, profit booking, and market volatility.
- Market Cap: 7,610Crore INR
- Current Price: ₹ 557
- 52 Week Range: ₹ 496.10 – ₹ 848.00
- P/E Ratio: 36.7
- Down from 52 Week High: 58%
After an initial rise of 73% over the IPO price of ₹480, the stock experienced volatility due to early profit booking by investors.
The company recorded October 2024 as the best-ever month with revenues exceeding ₹10,500 million. Revenue per store reached ₹1,270 million, with net profit per store at ₹32.5 million, reflecting strong operational efficiency.
9 new showrooms were launched during Navaratri, bringing the total store count to 48, with plans to reach 53 stores by Q4 FY25.
The company plans to expand into Madhya Pradesh, Chhattisgarh, and Jharkhand, leveraging its brand legacy and consumer connections from Maharashtra. PNG Jewellers aims to add 25 stores in FY26, including a mix of company-owned and franchisee stores.
5. Goldiam International
Goldiam International manufactures and exports gold and diamond jewellery to global retailers, departmental stores, and wholesalers. Goldiam has been shifting from a pure natural diamond in-store jewellery company to a major supplier of lab-grown diamond (LGD) jewellery, with an omnichannel sales strategy.
- Market Cap: 4,245 Crore INR
- Current Price: ₹ 393.85
- 52 Week Range: ₹ 143.55 – ₹ 569.00
- P/E Ratio: 37.88
- Down from 52 Week High: 31%
In the last year, shares of Goldiam International have fallen by 31% from their 52 week high due to declining profit margins, industry challenges, and high inflation.
The LGD sector(lab-grown diamond industry) has faced price declines due to excess supply, potentially impacting Goldiam International’s margins. The US market, a significant one for Goldiam International, has experienced high inflation, affecting consumer spending on luxury items.
The order book as of 31 December 2024 stands at approximately ₹1.8 billion, expected to be fulfilled in the next three-four months. Goldiam plans to double the number of stores to 150-200 over the next three-five years, aiming for 20 stores by the end of FY25.
The management is optimistic about maintaining growth despite a stagnant US jewellery market, focusing on increasing wallet share among existing customers. They anticipate no further decline in lab-grown diamond prices, expecting stable margins moving forward.
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Conclusion
The sharp correction in jewellery stocks reflects a mix of macroeconomic pressures, industry-specific challenges, and shifting investor sentiment.
Assess your financial goals, risk tolerance, and investment horizon before making investment decisions.
Happy Investing!