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Mint
5 days ago
- Business
- Mint
Growth of small-town gold buyers spurs sales hopes of jewellery retailers; PN Gadgil, Senco target $1 billion revenue
MUMBAI/BENGALURU : Consumers in India's smaller towns are increasingly buying jewellery from organised retailers, drawn by brand trust, better designs, and transparent pricing. This has brightened prospects for PN Gadgil Jewellers Ltd and Senco Gold Ltd, which are targeting 20% revenue growth to $1 billion. The shift in shopping preferences has also prompted many unorganised jewellers to become franchisees of organised chains that offer a readymade platform for growth. 'Franchisees see value in aligning with an established brand as it offers instant credibility and access to a scalable business model," said Bhavya Gandhi, an equity research analyst at Dalal and Broacha. 'With rising per capita incomes in tier-2 and tier-3 cities, consumers are no longer just buying gold – they're choosing branded jewellery for its perceived quality, reliability and aspirational appeal." The positive outlook for jewellery retailers is driven by gold exchange schemes, rising gold prices, store expansion and new product lines. PN Gadgil Jewellers, the third-largest jewellery retailer, posted revenue of ₹7,630.5 crore in FY25. The company is targeting younger buyers through its new lightweight jewellery line. Saurabh Gadgil, chairman of PN Gadgil, said in the company's June quarter update that jewellery is increasingly becoming a form of everyday self-expression rather than just a traditional purchase. Senco Gold, the fourth-largest jewellery retailer, ended FY25 with ₹6,263 crore in revenue and expects to cross the $1 billion ( ₹8,597 crore) mark in FY27. 'Senco expects to grow its topline by 19-20% every year," said Sanjay Banka, the company's chief financial officer. In comparison, Titan Ltd, India's largest gold jeweller, posted ₹47,501 crore in jewellery revenue and is targeting 15-20% annual growth. Kalyan Jewellers, the second-largest company with ₹25,045 crore in jewellery revenue, hasn't provided growth guidance this year. The company reported a 31% jump in revenue in the June quarter. Titan and Kalyan Jewellers did not respond to queries emailed on Tuesday afternoon. Market outlook Jewellery company stocks ended higher even as the benchmark BSE Sensex fell 0.45% to 82,259.24 at the close on Thursday. Senco Gold shares climbed 5% to ₹372.75, while PN Gadgil shares advanced 3.8% to ₹623.70. Kalyan Jewellers added 1.8% to ₹600.20 and Titan Company shares rose 0.45%. Investors are looking forward to the Q1 results of listed jewellery companies including PC Jeweller, Senco Gold, and Kalyan Jewellers. Traditionally, this quarter benefits from festive buying during Akshaya Tritiya and the wedding season. The optimistic outlook for gold jewellers contrasts with the soft prospects for other sectors, including the auto and fast-moving consumer goods industries. 'Our outlook for jewellery, not just for the year but for the next few years, continues to be bullish," Ajoy Chawla, CEO of Titan's jewellery division, said in the company's June quarter update. Chawla attributed the upbeat outlook to steady wedding demand, a diversified product portfolio catering to traditional and modern buyers, and the company's continued expansion through new stores and digital channels like CaratLane. 'There are a couple of reasons why gold jewellers are quite bullish," said Gandhi of Dalal and Broacha, adding that store expansion alone contributes about 10% to growth and existing stores add another 5-7%. PN Gadgil and Senco have distinct approaches to the business. Last year, PN Gadgil received about 90% of its business from company-owned stores and the remaining from its 12 franchise-owned stores. At Senco, franchise-owned stores, which invest in both setting up the outlets and managing inventory but sell Senco's jewellery, accounted for one-third of revenue. Senco's expansion strategy hinges on a hybrid store model, with franchises in smaller towns and company-owned outlets in metros. Senco has 72 franchise showrooms of the 175 stores it operates and it may add more than than 10 franchisee outlets in the future. 'Franchises are mostly present in tier-3 and tier-4 towns, while our company-owned stores are in metros like Kolkata, Mumbai and Gurugram," Banka said. Titan plans to open 40-50 Tanishq stores and scale up its CaratLane and Mia formats. 'Every jeweller has their strategy to enter untapped markets," said Pratik Prajapati, an equity research analyst at Ambit Capital. 'Depending on the business plan and location, the model of the showroom, whether company-owned or franchise-owned, will differ." Exchanging gold The rise in gold prices also plays a crucial role, Gandhi said, as jewellery-making charges are typically linked to the invoice value rather than volume, allowing retailers to maintain or even expand margins. Wedding demand accounts for 30-40% of total sales, followed by daily wear and special occasion purchases. 'Customers usually come in with a fixed budget, not necessarily seeking 22-karat or 18-carat gold. If a product fits that budget, they go for it, which is why studded jewellery is gaining traction," Gandhi said. He also said that most studded pieces include diamonds, which typically offer better margins for jewellers. "Wedding demand also continues to remain robust this year – it typically makes up to 30-40% of the demand in the jewellery market,'' he said. Exchange schemes are growing in popularity as customers seek to take advantage of rising prices and upgrade their old jewellery with modern designs. Senco is encouraging customers to exchange old jewellery to meet its sales target, according to Banka, as gold prices continue to climb due to global uncertainties that are pushing bullion rates higher. Senco Gold said old-gold exchanges now make up 40% of its sales, up from 28% a year ago. 'When gold prices go up, customers do not have extra cash to buy new jewellery. Therefore, many middle-class families bring their old gold to exchange it for new jewellery," said Banka. 'We help them with free testing, melting and hallmarking the gold." For PN Gadgil too, old-gold exchanges are becoming a bigger contributor. 'Approximately 20% of total sales used to come from old-gold exchanges in the past year for the brand. Since a couple of months, it has increased to approximately 25%," said Suresh Krishnan, vice-president of sales. Titan described old-gold exchange schemes as a key lever to manage price sensitivity. Strong relationships Gold prices averaged ₹93,950 per 10 grams in the June quarter and briefly crossed ₹1,01,000 in some Indian cities, according to Senco's quarterly update on 4 July. 'It works well for customers because the gold they already own has appreciated in value," said Prajapati of Ambit Capital. 'They can exchange their old jewellery for new pieces of similar value without spending much additional money, which makes branded purchases more affordable and appealing especially when gold prices are high." This helps the company maintain strong customer relationships and, in turn, helps customers establish trust and transparency with the jeweller, he said. JM Financial forecasts a 20% CAGR for India's organised jewellery market through FY28, driven by hallmarking mandates, PAN-linked purchases, and a shift toward branded jewellery in smaller towns. 'The Indian jewellery market was worth INR 6.4 trillion in FY24, with an organised share of 38%. The organised segment is expected to witness higher growth of 20% over FY24-28E," JM Financial analysts noted in a 14 July report.
Mint
13-07-2025
- Business
- Mint
PC Jeweller vs Senco Gold vs Kalyan Jewellers: Which stock to buy ahead of Q1 results 2025?
Jewellery stocks: The jewellery sector is witnessing momemtum as investors look forward to the Q1 FY26 results of listed companies such as PC Jeweller, Senco Gold, and Kalyan Jewellers. Traditionally, this quarter benefits from festive buying during Akshaya Tritiya and the busy wedding season — a pattern that has held true this year as well. Despite some volatility in gold prices, all three firms have noted robust demand in their April to June business updates, driven by high-ticket purchases and strong customer turnout. Senco Gold said that festivals such as Poila Boishakh and Baisakhi led to increased footfall at its stores. Kalyan Jewellers experienced strong customer engagement across both India and the Middle East. PC Jeweller, with its primary focus on the domestic market, witnessed a significant rise in demand fueled by wedding and festive buying. According to Gaurav Goel, Founder & Director at Fynocrat Technologies, all three companies have had a strong quarter, but for a risk-averse investor, Senco Gold stands out as the more balanced and dependable choice. It has shown steady growth, improved margins, and continued to build its brand while being transparent in its business updates. Senco Gold posted 28 percent growth in total revenue, including 24 percent growth in retail revenue and a 19 percent rise in same-store sales. It opened nine new jewellery stores and continued building its portfolio of sub-brands like Sennes and Everlite. The company also said that diamond jewellery remained in strong demand and that gold exchange made up 40 percent of its overall sales. Kalyan Jewellers reported a 31 percent growth in overall revenue and highlighted that its digital-first platform, Candere, grew by 67 percent compared to last year. The company opened 19 new showrooms during the quarter and confirmed plans to add 170 more across India and international markets this year PC Jeweller reported the highest revenue growth among the three, at around 80 percent compared to the same period last year. The company said this growth was driven by strong wedding and festive demand. It also reported that it has further reduced its outstanding debt and remains on track to become debt-free by the end of FY26. Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, said on all three jewellery stocks - PC Jeweller has recently broken out above the ₹ 12 level, achieving a new 52-week high at ₹ 19 on the weekly chart. The formation of a bullish engulfing pattern further confirms strong bullish momentum and the possibility of continued rally. However, the stock is currently in an overbought condition, and a stiff resistance is evident around the ₹ 20–22 zone. A decisive breakout above this resistance would be necessary for the next leg of the rally. For now, support is seen around ₹ 13–14. Traders are advised to avoid fresh positions at current levels and instead look for buying opportunities near the support zone. A dip-buying strategy may be considered with a stop-loss at ₹ 12 and an upside target of ₹ 22. Senco Gold has formed a bullish engulfing pattern on the weekly chart, a classic bullish signal that indicates potential for further upside momentum. The stock also appears to be rebounding from key Fibonacci retracement levels, supporting the likelihood of a continued upward trajectory. The expected upside range is projected between ₹ 470 and ₹ 510 in the coming months. Investors holding the stock may consider maintaining their positions, with a stop-loss placed at ₹ 300, while targeting the ₹ 420 mark in the medium term. Kalyan Jewellers has witnessed a significant trendline breakout on the monthly chart, particularly above the ₹ 570 mark, indicating the potential for a strong upward move. This breakout is visible on both the weekly and monthly timeframes, suggesting robust bullish sentiment. In the short term, technical indicators such as the RSI are showing strength, further supporting the bullish bias. Considering the overall structure, traders may adopt a "buy on dips" strategy, especially around the ₹ 550–570 zone, which now acts as a crucial support area and could offer an attractive entry point for medium to long-term gains. So, Investor can hold and buy this stock with stop loss of 530 for the target price of 650. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
12-07-2025
- Business
- Economic Times
Gold rally cools but jewellery stocks sparkle with up to 45% return in FY26
Let's take a closer look at what's fueling this rally: Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel India's top jewellery stocks have put on a dazzling show in FY26, with share prices of PC Jeweller , Kalyan Jewellers, Senco Gold , and Titan Company surging between 10% and 45% so far this fiscal. Although gold prices have eased slightly following a sharp run-up, and macroeconomic uncertainties persist, these stocks have remained unaffected — a testament to the strong investor confidence in the sector's resilience, sustained demand, and promising growth rally isn't just sentiment-driven—it's backed by solid fundamentals. All four players delivered strong Q1 business updates, each benefiting from a combination of factors — including robust revenue growth driven by Akshaya Tritiya sales, regional festivities, and aggressive showroom expansion. Consumer preferences are also evolving, with a clear shift toward lightweight jewellery and gold coins, while brands are bolstering performance through strategic marketing efforts and prudent debt management. Together, these trends highlight the sector's ability to shine even amid challenging macroeconomic performance in FY26 so far shows PC Jeweller leading the pack with a sharp gain of 44%, followed by Kalyan Jewellers India and Senco Gold, both rising about 25%. Meanwhile, Titan—the largest company by market capitalization in the segment—has registered a gain of 12%.PC Jeweller made a powerful comeback in FY26, emerging as the top performer among gold stocks. A massive 80% year-on-year revenue spike in Q1 — thanks to strong wedding and festive demand — set the tone. But what truly caught investor attention was the company's sharp focus on debt reduction, trimming bank borrowings by 7.5% in Q1, following a 50% cut in FY25. With plans to go debt-free by FY26-end, and operational momentum backing that target, investor confidence surged. The market rewarded PC Jeweller's discipline and ambition — with stock prices gleaming early in the fiscal Jewellers is proving the power of multi-channel growth, clocking 31% revenue growth across Indian and international markets in Q1. India operations thrived with an 18% jump in same-store sales, while its digital-first brand Candere soared with 67% growth, fuelled by a fresh marketing campaign and strong online traction. Overseas markets — particularly the Middle East — also held up well, contributing 15% to consolidated revenue. With a massive showroom rollout planned (170 in FY26) and momentum across physical and digital fronts, Kalyan is all set for a golden expansion Gold sparkled this year with a perfect blend of strong festive traction, rapid retail expansion, and creative marketing. Q1 revenue jumped 28%, including 24% YoY retail growth and 19% same-store sales growth (SSSG) — driven by high footfall during Akshaya Tritiya, Poila Baishakh, and Baisakhi. Despite a 32% YoY rise in gold prices, the brand sustained demand with clever tactics like promoting old gold exchange, which made up 40% of total sales. With 9 new stores added in Q1 and fresh campaigns like Bangle Utsav and The Golden Curve drawing crowds, Senco is shaping up as a major contender in the modern jewellery the most diversified and stable player in the pack, continues to play the long game — and win. Tanishq's domestic jewellery business grew 18% YoY in Q1, while high gold prices nudged consumers toward lighter jewellery and gold coins. Though the studded jewellery segment saw slightly muted volume growth, overall ticket sizes increased, helping drive early double-digit Titan's US jewellery business nearly doubled YoY, boosting the company's international revenue by 49%. The company also added 19 jewellery stores in India and launched outlets in Dubai and Sharjah, showcasing its global push. Add in strong growth in watches (+23%) and eyewear (+12%), and Titan proves once again why it remains a solid gold pick in uncertain times.
Time of India
12-07-2025
- Business
- Time of India
Gold rally cools but jewellery stocks sparkle with up to 45% return in FY26
India's top jewellery stocks have put on a dazzling show in FY26, with share prices of PC Jeweller , Kalyan Jewellers, Senco Gold , and Titan Company surging between 10% and 45% so far this fiscal. Although gold prices have eased slightly following a sharp run-up, and macroeconomic uncertainties persist, these stocks have remained unaffected — a testament to the strong investor confidence in the sector's resilience, sustained demand, and promising growth outlook. The rally isn't just sentiment-driven—it's backed by solid fundamentals. All four players delivered strong Q1 business updates, each benefiting from a combination of factors — including robust revenue growth driven by Akshaya Tritiya sales, regional festivities, and aggressive showroom expansion. Consumer preferences are also evolving, with a clear shift toward lightweight jewellery and gold coins, while brands are bolstering performance through strategic marketing efforts and prudent debt management. Together, these trends highlight the sector's ability to shine even amid challenging macroeconomic conditions. Stock performance in FY26 so far shows PC Jeweller leading the pack with a sharp gain of 44%, followed by Kalyan Jewellers India and Senco Gold, both rising about 25%. Meanwhile, Titan—the largest company by market capitalization in the segment—has registered a gain of 12%. Let's take a closer look at what's fueling this rally: PC Jeweller - Turning Heads with a Debt-Free Vision : PC Jeweller made a powerful comeback in FY26, emerging as the top performer among gold stocks. A massive 80% year-on-year revenue spike in Q1 — thanks to strong wedding and festive demand — set the tone. But what truly caught investor attention was the company's sharp focus on debt reduction, trimming bank borrowings by 7.5% in Q1, following a 50% cut in FY25. With plans to go debt-free by FY26-end, and operational momentum backing that target, investor confidence surged. The market rewarded PC Jeweller's discipline and ambition — with stock prices gleaming early in the fiscal year. Kalyan Jewellers - Going Big with Multi-channel Expansion: Kalyan Jewellers is proving the power of multi-channel growth, clocking 31% revenue growth across Indian and international markets in Q1. India operations thrived with an 18% jump in same-store sales, while its digital-first brand Candere soared with 67% growth, fuelled by a fresh marketing campaign and strong online traction. Overseas markets — particularly the Middle East — also held up well, contributing 15% to consolidated revenue. With a massive showroom rollout planned (170 in FY26) and momentum across physical and digital fronts, Kalyan is all set for a golden expansion spree. Senco Gold - Riding the Festive Wave with Flair : Senco Gold sparkled this year with a perfect blend of strong festive traction, rapid retail expansion, and creative marketing. Q1 revenue jumped 28%, including 24% YoY retail growth and 19% same-store sales growth (SSSG) — driven by high footfall during Akshaya Tritiya, Poila Baishakh, and Baisakhi. Despite a 32% YoY rise in gold prices, the brand sustained demand with clever tactics like promoting old gold exchange, which made up 40% of total sales. With 9 new stores added in Q1 and fresh campaigns like Bangle Utsav and The Golden Curve drawing crowds, Senco is shaping up as a major contender in the modern jewellery space. Titan Company - A Trusted Bet with Global Ambitions: Titan, the most diversified and stable player in the pack, continues to play the long game — and win. Tanishq's domestic jewellery business grew 18% YoY in Q1, while high gold prices nudged consumers toward lighter jewellery and gold coins. Though the studded jewellery segment saw slightly muted volume growth, overall ticket sizes increased, helping drive early double-digit gains. Notably, Titan's US jewellery business nearly doubled YoY, boosting the company's international revenue by 49%. The company also added 19 jewellery stores in India and launched outlets in Dubai and Sharjah, showcasing its global push. Add in strong growth in watches (+23%) and eyewear (+12%), and Titan proves once again why it remains a solid gold pick in uncertain times.
Mint
07-07-2025
- Business
- Mint
Senco Gold share price hits 5% upper circuit after Q1FY26 update
Senco Gold share price hit 5 per cent upper circuit to ₹ 367. 35 in Monday's trading session after the company reported its first quarter business update for financial year 2026. The jewellery stock opened at ₹ 361.10 apiece on Monday, July 7, as compared to previous close of ₹ 349.90 apiece. Senco Gold share price has gained over 79 per cent since its listing in July 2023. In its Q1 business update, the company announced a 24 per cent year-on-year rise in retail revenue, with overall revenue climbing 28 per cent YoY. The growth was mainly fueled by strong consumer demand during regional festivals and the company's ongoing focus on expanding its retail presence. As part of its robust growth plan, Senco Gold opened nine new showrooms in Q1FY26, bringing its total number of jewellery outlets to 179. During the quarter, domestic gold prices saw a notable surge, averaging between ₹ 86,900 and ₹ 1,01,000 per 10 grams. This represents a 32% year-on-year increase and a 5% rise from the previous quarter. The sharp increase in gold prices was driven by global economic uncertainties, substantial central bank purchases, and various international market dynamics. Looking forward, Senco Gold is on track to achieve its goal of opening 20 new showrooms by the end of FY26. To further boost the expansion of its lifestyle and fashion jewellery brands — Sennes, Gossip, and Everlite — the company is considering the franchise model. This move aims to widen Senco's market presence and attract a broader customer base across both urban and semi-urban areas. ' We continued our showroom expansion and launched 9 new showrooms (4 COCO and 5 FOFO/FOCO), and taking the jewellery store portfolio to 179. (on exclusion of 4 Sennes Showrooms). We also launched 1 Sennes showroom taking the Sennes portfolio to 7 (3 in Wholly Owned subsidiary and 4 in SGL),' the company said in an exchange filing dated July 4. The jewellery company further said, ' Having already launched 9 showrooms, we are on course to achieve annual target of 20 showroom. We are having a good pipeline of franchisee stores under FOFO as well as FOCO model. In addition, we are also looking at Franchisee route for expansion of Sennes, Gossip and Everlite brands. Sennes being a new and modern brand will also continue its growth journey.' The company added that Q2 usually has no festivals or wedding demand and is driven by Monsoon led demand and usually lower than Q1. With an early onset of monsoon (1st time in last 16 years) and above average rainfall prediction of 106% and stable macroeconomic environment, we are now preparing for Q2 with focus on inventory optimisation, festive collections, and accelerating diamond and lightweight jewellery lines. ' Price volatility in gold and upcoming festivals like Raksha Bandhan and Onam will shape consumer demand in Q2. We see growing consumer demand for 14K and 18K jewellery, while the industry is working towards 9K jewellery,' it said. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
