Jewellery stocks rebound with rising gold prices

Jewellery stocks have seen a bounce in value recently after a tough few months. Companies like Titan Company, Kalyan Jewellers, PN Gadgil Jewellers, Thangamayil Jewellery, and Senco Gold have risen between 2% and 20% in just one week. This is a positive turn compared to their drops of 4% to 40% over the past three months. The market for these stocks was under stress due to worries about rising gold prices. Higher prices can affect how much people are willing to buy, even as they can increase revenue for the companies. Despite these challenges, many retailers believe they will keep growing in the coming months. They are focusing on expanding their stores and increasing the average amount spent by customers. Kalyan Jewellers has an ambitious plan to open 170 new stores in the next financial year, with 45 expected by March 2025. Titan has already opened 46 new stores, bringing its total to 1,055. PN Gadgil plans to add 25 new stores, including a fresh concept aimed at younger shoppers. While expanding, companies are aware that success depends on how well each new store attracts customers. Recent sales data shows mixed results. Kalyan Jewellers reported a 16% year-on-year increase in sales from existing stores, while Thangamayil and Senco Gold experienced declines. Retailers are hopeful for strong demand during upcoming festivals and wedding seasons. Kalyan Jewellers noted that customer numbers remained steady in January, suggesting that buyers are adjusting to the high gold prices.