Jewellery stocks have rallied recently

KALYANKJIL

TBZ

SENCO

Jewellery stocks have rallied recently mainly because the market expects higher earnings, not just higher gold prices. Key reasons: Strong Q1 FY27 business updates: Companies like Titan, Kalyan, Senco, and PN Gadgil reported strong sales growth despite record gold prices, beating market expectations. The Economic Times +2 The Economic Times +2 Organized players gaining market share: Consumers are increasingly buying from branded jewellers due to trust, hallmarking, exchange schemes, and financing options. Business Standard +1 High gold prices boosted revenue: Even with modest volume growth, higher gold prices increased the value of sales, supporting revenue and profits. The Economic Times +1 Store expansion & same-store sales: Many chains are opening new stores while existing stores continue to post healthy growth, indicating strong demand. The Economic Times +1 Positive investor sentiment: Strong earnings led investors to re-rate the sector, causing broad buying across jewellery stocks. Angel One +1 Risk: The rally may not continue if demand slows or gold prices correct. Recent weak guidance from Thangamayil Jewellery shows investors are becoming more selective.