Jewellery Stocks Rally: Thangamayil and Sky Gold Hit Record Highs on Strong Growth Outlook

Shares of ThangamayilJewellery and Sky Gold & Diamonds surged up to 8%, extending their strong rally and touching fresh record highs. The gains were supported by positive business prospects, resilient jewellery demand, and optimism about long-term growth.

Over the last 10 trading sessions, Thangamayil Jewellery has gained around 29%, while Sky Gold & Diamonds has climbed nearly 28%, outperforming the broader market.

Why Are Jewellery Stocks Rising?

Despite elevated gold prices, the jewellery industry continues to witness healthy demand. Consumers still view gold as both a valuable investment and an important purchase for weddings and festivals.

Investors are also encouraged by:

• Continued expansion by organised jewellery retailers.
• Growing preference for lightweight and designer jewellery.
• Improving profitability across the sector. 

Sky Gold Benefits from Strong Business Momentum

Sky Gold & Diamonds, a business-to-business (B2B) jewellery manufacturer, continues to benefit from increasing demand for lightweight, design-focused, and studded jewellery.

The company's management expects healthy business growth over the coming years and remains focused on improving profitability by FY30 through:

• Strong customer relationships.
• Investment in technology and manufacturing.
• Product innovation.
• Capacity expansion. 

Thangamayil Reports Strong Sales Growth

Thangamayil Jewellery reported same-store sales growth of 38.18% for the 12 months ended March 31, 2026, compared with 18.10% in the previous year.

The company also benefited from:

• Better inventory management.
• Improved product realisations.
• Strong liquidity.
• Higher contribution from non-gold products. 

These factors helped improve its profitability during FY26.

Read More: Dividend Stocks This Week (July 6 – 10): Mphasis, Titan, Nestlé India, Axis Bank and 41 Others to Trade Ex-Dividend!

Impact of Higher Gold Import Duty

The Government of India recently increased the import duty on gold and silver from 6% to 15%.

While the move may affect jewellery demand in the coming months, Thangamayil believes many customers are increasingly opting to exchange old gold for new jewellery purchases. The company also expects the higher import duty to generate inventory gains of around ₹60 crore on its existing gold and silver stock based on current market prices.

Conclusion

The rally in Thangamayil Jewellery and Sky Gold & Diamonds reflects investor confidence in the long-term prospects of India's organised jewellery sector. Strong sales growth, expansion plans, improving profitability, and resilient consumer demand continue to support the industry's outlook. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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