India's Jewelers: Small Caps Shine Bright

India's jewellery sector is experiencing a significant shift towards organized retail, projected to increase its market share from 35.2% in CY23 to 59.7% by CY29. This trend is creating substantial opportunities for Business-to-Business (B2B) jewellery manufacturers.

Shanti Gold International is expanding its annual production capacity to 7,900 kg, with a new facility expected by December 2026. The company is also focusing on high-volume machine-made gold jewellery and entering North Indian markets.

Utssav CZ Gold Jewels, currently operating at up to 90% capacity during peak seasons, plans to scale its production to 6,000-7,500 kg per annum. The company also aims to grow its diamond segment and expand internationally.

RBZ Jewellers, while a B2B supplier to major brands, is strategically pivoting towards its B2C retail brand, aiming for a 75% retail revenue mix within five years. This move complements its existing manufacturing capabilities.

Valuations vary, with Utssav CZ Gold Jewels trading at a premium, while Shanti Gold and RBZ Jewellers are priced below the industry median. Investors are advised to watch these stocks as they capitalize on the growing demand from organised retail.