Gold price returns: Undoubtedly, gold prices have had a stellar run this year, eclipsing the equity market with its strong 41% returns in 2025 alone. In the last five years, the return for gold prices stands at 121%, showing steady growth. However, a little-known small-cap stock, operating in the gold mining business, has beaten the by a wide margin.
The stock in question — — has jumped a whopping 772% during the same period, highlighting the benefits of picking the right stocks.
Deccan Gold Mines – Business Highlights
Deccan Gold Mines, according to the company’s annual report, is India’s first publicly listed gold mining company in over five decades. It holds substantial stakes in advanced-stage gold projects in India and Kyrgyzstan, and a portfolio of high-potential Tier-II Projects that are available for exploration or development in Mozambique, Tanzania and Eastern Finland.
The company, over the years, has transformed from being a listed gold exploration company into one with visible production prospects across domestic and overseas assets, said Harshal Dasani, Business Head at INVAsset PMS.
“Its associate Geomysore Services has secured key approvals for the Jonnagiri gold project in Andhra Pradesh, putting the stock in the limelight. Environmental clearance for the processing plant and a consent to operate from the state pollution board bring the project closer to commissioning, making it one of the first private-sector gold mines in India, poised for production,” Dasani added.
The company late last month also updated about steady progress at its Altyn Tor Gold Project in Kyrgyzstan, with key infrastructure nearing completion. The company said that exploration drilling has advanced 2,000m of a 2,500m program, with visible gold identified and assay results awaited, indicating potential for an expanded resource base.
To fund development, Deccan Gold Mines has raised loans totalling ₹120 crore, secured against its Geomysore stake, while litigation on the Ganajur lease in Karnataka continues despite a favourable Supreme Court ruling.
Deccan Gold Mines Earnings
However, Deccan Gold Mine’s earnings don’t reflect in its surging share price. This, as per analysts, is because DGM is still in the pre-production phase. The company has seen a growth in revenue from ₹3 lakh in December 2024 to ₹62 lakh in the June quarter.
However, higher expenses have dented the bottom line, with the company failing to turn in a profit in any of the last few quarters. In the June quarter, its net loss was at ₹15.59 crore.
“Its consolidated FY24 and Q1FY25 results show minimal income, largely from interest and other sources, while operating expenses and project costs keep it in loss territory. This is typical of mining juniors — valuations move on permits, financing, and project timelines rather than near-term earnings,” Dasani explained.
The earnings inflexion depends on two milestones — Jonnagiri (Andhra Pradesh) and Altyn Tor (Kyrgyzstan).
Deccan Gold Mines: Should you buy?
According to Dasani, with gold holding firm near record high levels of ₹1,10,000 per 10 grams, DGM is well-positioned to benefit once these projects reach production.
“However, execution, timely ramp-up, and regulatory clarity remain critical before the company can fully translate higher gold prices into sustainable cash flows,” he said.
Meanwhile, technical analysts also remain bullish on the . “Deccan Gold gained nearly 10% in September, rebounding strongly from the crucial 200-DSMA support. Prices are now consolidating near the 135 zone, where the descending trendline resistance coincides with the 89-DEMA,” said Rajesh Bhosale, Technical Analyst, Angel One.
A sustained move above this level could unlock further upside potential towards 145, he added, saying that the momentum is also improving, with RSI crossing above 50 and its prior peak, reinforcing the early buy signal. On the downside, the 200-DSMA around 122 remains the key support, according to the analyst.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.