Regional Gold Chains Outshine Titan Despite Soaring Prices

Regional gold jewellery chains are demonstrating remarkable growth, often outpacing larger competitors like Titan Company, despite their smaller scale. Valuations for these regional players currently stand at a substantial discount, ranging from 44% to 87% compared to Titan. This trend occurs amidst robust consumer demand for gold in India, a phenomenon persisting despite significant price increases and a recent hike in import duties from 6% to 15%.

Southern India, in particular, showcases strong regional performance. Thangamayil Jewellery, based in Madurai, reported a 44.4% year-on-year same-store-sales growth (SSSG) and a 71% increase in net sales for the June 2026 quarter. Similarly, Kerala-based Kalyan Jewellers India saw a 28% SSSG and a 45.7% rise in consolidated revenue.

Eastern India also experienced a sales surge, driven by festivals and auspicious occasions. Senco Gold reported a 39% SSSG, contributing to a 67.4% year-on-year revenue increase. P N Gadgil Jewellers in Pune benefited from strong sales during Akshay Tritiya and a growing network, achieving a 46.1% SSSG and 40.7% revenue growth.

For comparison, Titan Company's jewellery business grew 42.6% to ₹18,253 crore in the same period. While Titan commands a premium valuation with a consolidated Return on Equity (RoE) of 37.7%, regional players like Kalyan Jewellers (24.8% RoE) and Thangamayil Jewellery (28.1% RoE) offer compelling value at lower P/E ratios. Investors are closely monitoring the upcoming festive season for further insights into these regional chains' performance against market leaders.