5 Stocks to Watch as the Gold Price Crosses Rs 1.5 Lakh

#1 Muthoot Finance

Muthoot Finance is India's largest gold loan non-banking financial company (NBFC), specializing in loans secured against gold jewellery.

Muthoot Finance's stock has seen a remarkable rise, doubling from its 52-week low of Rs 1,964 to its current value of Rs 3,858 as on 22 January 2026. This reflects the advantage the company gets from the surge in gold prices.

How Muthoot Finance Benefits from Rising Gold Prices

Muthoot Finance benefits from rising gold prices primarily through increased loan disbursements and higher collateral values, which boost its lending capacity and revenue from interest.

As gold prices rise, customers can borrow more against the same amount of gold jewellery (typically up to 75% of the gold's market value), leading to larger loan books and greater interest income on those expanded loans.

Interest income rises proportionally with loan sizes, while low default risk (due to auction able gold collateral) keeps NPAs minimal. Processing fees and renewals also increase with higher loan volumes.

Financial Highlights of Muthoot Finance

In Q2 FY26, the net interest income of the company soared to Rs 47,116 m vs Rs 31,218 m YoY. Higher borrowings on account of a sharp increase in gold prices, boosted the net interest income of the company.

Net profits at Muthoot Finance soared to Rs 24,117 m from Rs 13,212 m YoY.

In H1 FY26, the consolidated loan assets under management grew to 42% YoY to Rs 1476.73 bn against Rs 1041.49 bn in the corresponding half year period of last year. During the half-year, consolidated loan assets under management grew Rs 250 bn, a growth of 21%

In view of the performance, the management of Muthoot Finance has upgraded its FY26 gold loan growth guidance to 50% from 30-35%.

The company is also diversifying its lending, with the non-gold loan portfolio now about 12-15% of the consolidated loan portfolio.

As per the management, the microfinance sector is showing renewed resilience after the implementation of regulatory guardrails and better underwriting. This augurs well for the future.

Muthoot Finance plans to expand its non-gold loan portfolio, including microfinance.

Favourable regulatory changes from the RBI for gold loans, higher gold price and tighter norms for unsecured credit are expected to boost gold loan demand.

To know more check the Muthoot Finance fact sheet and latest quarterly results.

#2 Kalyan Jewellers

Kalyan Jewellers is a leading Indian jewellery retailer founded in 1993 by T. S. Kalyanaraman and headquartered in Thrissur, Kerala.

As of 31 December 2025, the total number of showrooms across India and abroad stood at 469 (Kalyan India - 318, Kalyan Middle East - 38, Kalyan USA - 2, Kalyan UK - 1, Candere - 110).

The stock of Kalyan Jewellers has fallen from a 52-week high of Rs 617.3 to Rs 376.

Before we sound more details on Kalyan Jewellers it's important to understand, how jewellery stocks get impacted by rise in gold prices, to put things in right perspective.

For companies like Kalyan Jewellers, the impact is a double-edged sword:

• Inventory gains: These companies hold massive amounts of gold as inventory. When prices rise, the value of their existing stock increases instantly, leading to higher reported profits.
• Product mix shift: When gold becomes too expensive, consumers often switch from heavy plain gold jewellery to studded jewellery (diamonds/precious stones). Studded jewellery has higher profit margins compared to plain gold, which can help the company's bottom line.
• The risk: Extreme price spikes can cause demand destruction where middle-class buyers postpone purchases, leading to lower sales volumes.

Financial Highlights of Kalyan Jewellers

In Q2 FY26 revenues surged to Rs 78,560 vs Rs 60,576 m YoY. Net profits doubled to Rs 2,605 m from Rs 1,303 m YoY.

Earlier this month, it released a Q3 business update. The India operations saw revenue growth of 42% compared to Q3 FY25, driven by strong festive demand.

As per the company, demand during the period continued to remain robust despite volatility in gold prices. Growth was broad-based across plain gold and studded categories.

During Q3 FY26, Kalyan Jewellers recorded same-store-sales-growth of 27%. The international operations recorded revenue growth of 36% YoY.

Within the Middle East specifically, the company witnessed revenue growth of 28% compared to Q3 FY25 driven by same-store-sales-growth. International markets contributed 11% to the company's consolidated revenue.

During Q3 FY26, the company launched 21 Kalyan showrooms in India, 1 Kalyan showroom in the UK and 14 Candere showrooms in India.

To know more check the Kalyan Jewellers fact sheet and latest quarterly results.

#3 Nippon Life India Asset Management

Nippon Life India Asset Management is a leading Indian asset management company sponsored by Nippon Life Insurance Company of Japan.

Established in 1995 and headquartered in Mumbai, it manages Nippon India Mutual Fund, offering equity, debt, hybrid, and liquid funds to retail, institutional, and high-net-worth investors.

How Nippon Life India Asset Management benefits when Gold prices rise?

When gold prices rise, Nippon India Life Asset Management benefits primarily through higher fee collection and market dominance.

As an asset management company, they don't own the gold to sell for a profit; instead, they manage the Gold BeES fund.

In 2025, Nippon India Gold BeES saw record net inflows of over US$ 1.17 bn (Rs 98 bn) as investors flocked to gold during global uncertainty.

In the World Gold Council's December 2025 rankings, Nippon Gold BeES was the only Indian gold ETF to break into the top 15 globally based on fund flows, reflecting its massive popularity during the 2025 gold rally.

Financial Highlights of Nippon Life India Asset Management

On the financial front, Nippon Life India Asset Management reported net sales of Rs 6,581 m in Q2 -*-FY26, vs Rs 5,713 m YoY. Net profits of the company dropped to Rs 3,443 m vs Rs 3,600 m YoY.

The company closed the quarter with total assets under management of Rs 7.61 tn. This includes mutual funds, managed accounts, offshore Funds and GIFT City.

The mutual fund QAAUM grew 19.5% YoY and 7.1% QoQ to reach Rs 6.57 tn. The company was the fastest growing AMC in the Top-10 in H1 FY26 and had the highest increase in QAAUM market share in H1 FY26 among all AMCs.

Nippon Life India Asset Management has the largest investor base in the mutual fund industry, with 21.9 m unique investors. Over 1 in 3 mutual fund investors invest with the company.

In the ETF segment, the company is one of the largest ETF players with AUM of Rs 1.83 tn and a market share of 19.77%, which increased by 160 bps YoY.

Nippon Life India Asset Management future depends on its ability to maintain its lead in the ETF market and capture the rising tide of retail investors from smaller Indian cities.

To know more check the Nippon Life India fact sheet and latest quarterly results.

#4 Senco Gold

Next on our list is the stock of Senco Gold.

Senco Gold is an Indian jewellery company and brand that sells gold, diamond, and precious jewellery across India.

Senco Gold like other jewellers gains from amount of gold on the shelf. When prices rise, the value of their existing stock increases instantly, leading to higher reported profits.

However, extreme price spikes can cause demand destruction where middle-class buyers move to artificial jewellery causing serious demand destruction.

Financial Highlights of Senco Gold

On the financial front, Senco Gold reported net sales of Rs 15,361 m in Q2 FY26, vs Rs 15,005 m YoY. Net profits of the company surged to Rs 488 m vs Rs 121 m YoY.

The company recently announced its business update for Q3 FY26. Senco Gold achieved a 31% revenue growth during the first 9 months against the corresponding period last year.

The company launched 4 new franchise showrooms during Q3 FY26, taking the total showroom network to 196 (inclusive of 8 Sennes and 2 international showrooms). During the 9-month period, the company launched 11 franchises and 5 company-owned stores.

As per the management, the company is on course to achieve its annual target of 20 new showrooms in FY26. They expect to launch another 3-4 showrooms to achieve the milestone of 200 showrooms and have a robust pipeline for next year.

The management is confident of achieving 25%+ YoY growth for FY26, as the company has achieved 31% YoY growth in 9 months so far.

To know more check the company fact sheet and latest quarterly results.

#5 Deccan Gold Mines

Next on the list is the stock of Deccan Gold Mines.

Deccan Gold Mines is India's first listed gold mining company. It currently has active operations and exploration initiatives in Kyrgyzstan, India, Finland, Mozambique, and Tanzania.

On the financial front, there is nothing much to write about. The company has been reporting losses for the last few quarters, with minimal revenues.

Deccan Gold Mines recently announced the pre-commissioning trials at its Altyn Tor Gold Project in Kyrgyzstan. Subject to weather conditions, trials will be done over the next few months starting with the crushing, grinding, and gravity concentration circuits then followed by the leaching circuit.

Gold recovered during the pre-commissioning trials will be produced as a saleable concentrate or dore bars.

At another project, associate company Geomysore's Jonnagiri Gold Project in Andhra Pradesh has successfully completed trail runs.

During the trial, about 40 kg of dore bar was produced. Geomysore is an associate company of Deccan Gold in which it holds a 27% stake with the major shareholders being Lloyds Enterprises/ Thriveni Group.

Deccan Gold Mines recently came out with a rights issue. Following the successful closure of its Rs 3,147 m rights issue on 26 December 2025, the company has fully repaid all outstanding loans along with accrued interest to its lenders. It has now become a debt free company.

To know more check the Deccan Mines fact sheet and latest quarterly results.

Should You Consider Stocks Associated with the Gold Industry?

Deciding whether to consider stocks related to the gold industry largely depends on the specific segment you are focusing on. Gold loan companies are currently positioned quite favourably, each benefiting from their niche.

For example, asset management firms operating gold ETFs are witnessing strong momentum due to high demand for such financial instruments.

However, jewellery companies may face challenges if gold prices remain elevated for an extended period. Prolonged high prices could encourage a shift towards artificial jewellery alternatives. After factoring in costs like making charges, gold jewellery can become prohibitively expensive, resulting in lower demand which could impact earnings.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...