Organised Chains Outshine Gold Prices in Indian Jewellery Market

Helios Capital's views on gold prices are contrary to conventional wisdom. The firm believes that falling gold prices do not necessarily trigger renewed interest in the yellow metal.

Instead, they argue that the sector's appeal lies in the migration of demand toward organised chains. This shift is driven by consumer comfort with branded players, which enables listed companies to capture a disproportionate share of incremental demand.

Titan remains the benchmark for this thesis, growing at twenty percent-plus kind of growth rates in the jewellery business. Helios highlighted Lalithaa Jewellery Mart as another attractive opportunity, citing its positioning as 'one of the lowest making charge plays', which can strengthen value perception among customers.

The firm acknowledged that Lalithaa does not hedge its gold position, but believes this risk is manageable due to the daily nature of the exposure. This means that even if gold prices swing wildly, it's unlikely to create a major earnings shock for the company.