Gold Prices Take a Sharp Dip – What’s Next for Jewellery Stocks Like PN Gadgil, Senco Gold, and Sky Gold?
After hitting record highs earlier this month, gold prices have suddenly dropped nearly 5%, leaving investors puzzled and jewellers on alert. The unexpected decline, especially during the festive season of Diwali and Bhai Dooj, has sparked debates about its impact on gold jewellery companies — many of which have already struggled to mirror gold’s earlier bullish trend.
Over the past year, gold prices soared more than 50%, but the same couldn’t be said for jewellery stocks. While the yellow metal shined, the sector’s major players dimmed — with Senco Gold down nearly 50% and Kalyan Jewellers and PC Jewellers falling around 30%. Analysts say this gap highlights how jewellery stocks don’t always move in tandem with gold prices, being more tied to consumer demand, margins, and retail expansion.
PN Gadgil: Strong Buy Calls from Brokerages
Brokerages such as Motilal Oswal and Nuvama remain bullish on PN Gadgil Jewellers, projecting an upside potential of up to 31%. Motilal Oswal has set a 12-month target of ₹825 per share, while Nuvama estimates ₹860. PN Gadgil, Maharashtra’s second-largest organised jeweller, continues expanding its footprint into northern India. Its growing focus on high-margin, studded jewellery and regional expertise supports analysts’ confidence in the company’s growth story.
Sky Gold & Diamond: Among the Few Gainers
Sky Gold & Diamond has stood out with 8% returns in the past year — a rarity in this sector. Nuvama recently initiated coverage with a Buy rating and a target of ₹450, implying a 24% upside. Analysts note that Sky Gold’s B2B model, strong client base, and recent capacity expansions position it as a key beneficiary of the ongoing formalisation in India’s jewellery industry.
Senco Gold: Moderate Upside Expected
Despite facing sharp stock declines, Senco Gold remains a name to watch. Motilal Oswal has given a Neutral rating with a 13% upside target of ₹385. CEO Suvankar Sen noted growing interest in lighter, lower-carat jewellery (9K and 14K), and rising demand for diamond and platinum ornaments. The brand’s savings schemes and exchange programs are also drawing younger buyers, signalling strong festive and wedding season potential.
In short, while gold’s price correction has raised eyebrows, analysts believe select jewellery stocks could sparkle again — driven by strategic expansion, evolving consumer trends, and resilient festive demand.
