Stocks to buy: Domestic brokerage firm Choice Institutional Equities, in its latest note, has initiated coverage on the recently listed and with ‘buy’ ratings, citing a steady shift by consumers toward the organised jewellery market.
It believes that both companies are well-positioned to capitalise on the ongoing structural shift from the unorganised to the organised jewellery segment, supported by expanding retail networks, growing manufacturing capabilities, and increased consumer preference for certified jewellery.
Shringar House of Mangalsutra – Target price: ₹295 | Upside: 29%
The brokerage has set a target price of ₹295 for Shringar House of Mangalsutra, indicating an upside potential of 29% from the stock’s recent closing price of ₹229 apiece.
The company is a leading player in the mangalsutra segment with a 6% market share in 2023, which Choice expects to rise to 10% over the next 1–2 years.
It is expanding its pan-India supply chain to cater to underserved Tier-2 to Tier-4 markets. As per the brokerage, the company’s’ strong B2B positioning is backed by long-term relationships with leading jewellery brands such as Titan (Tanishq) and Malabar Gold.
Shanti Gold International – Target price: ₹350 | Upside: 45%
For Shanti Gold International, the brokerage arrived at a target price of ₹350, suggesting an upside potential of 45% from the stock’s recent closing price of ₹241.
It noted that company holds a strong position in the bridal jewellery segment, which makes up about 52% of India’s overall jewellery demand. It is expanding its Jaipur manufacturing facility to increase capacity to 3,900 kg, focused on machine-made plain gold jewellery.
The company’s strength is supported by its in-house design capabilities and a team of over 80 skilled designers.
Organised players now account for 35% of market share
The brokerage highlights that the jewellery market is witnessing a shift towards organised players, increasing from just 5% in CY05 to 35% in CY23, and projects it to reach around 60% by CY29E, driven by mandatory hallmarking, expanding brand presence in Tier-2 and Tier-3 cities, and growing consumer trust in organised brands.
Choice believes the rapid scale-up of organised jewellery retail chains is structurally positive for B2B gold jewellery manufacturers, ensuring greater business visibility and operational stability.
Over the medium term, B2B players with strong design agility, automation-driven production, and flexibility across karat categories are expected to emerge as preferred partners, benefiting disproportionately from this shift.
“While recent increases in gold prices may create near-term pressure, companies with strong pan-India presence, integrated operations, design strength, and expansion focus are expected to remain resilient,” the brokerage further stated.
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