Senco Gold Shares Surge: A Closer Look at Recent Developments
Senco Gold’s stock has recently experienced a notable increase, rising by 3.55% to reach Rs 1,380 per share on the Bombay Stock Exchange (BSE). This uptick follows a significant intraday jump of 5.5%, where shares peaked at an all-time high of Rs 1,406 on Tuesday.
Market Movements and Transactions
The surge in Senco Gold’s share price comes after Oman India Joint Investment Fund II executed a block deal selling 589,917 shares at Rs 1,280.16 each. In contrast, ICICI Prudential Life Insurance Company capitalized on this opportunity by purchasing 490,705 shares at the same price through another block transaction.
As of June 2024, Oman India Joint Investment Fund II maintained a stake of approximately 2.03% in Senco Gold.
At around mid-morning trading hours (11:37 AM), Senco Gold’s stock was up by over three and a half percent while the BSE Sensex showed only a slight decline of about 0.09%, resting at approximately 84,850 points.
Analyst Recommendations
Emkay Global has reaffirmed its ‘Buy’ recommendation for Senco Gold in their report dated September 17, 2024. The brokerage firm has adjusted its valuation multiple upward by an impressive fifteen percent to reach thirty-six times earnings per share (EPS). This adjustment is attributed to an enhanced medium-term growth outlook bolstered by a substantial duty reduction of nine hundred basis points on gold and superior performance compared to other retail sectors.
Financial Performance Overview
In terms of financial results for Q1 FY25 (April-June), Senco Gold reported remarkable figures with net profits soaring to Rs 51.27 crore—an impressive year-on-year increase of approximately eighty-five point four percent from the previous fiscal year’s corresponding quarter.
The Kolkata-based jewelry chain also recorded consolidated revenues amounting to Rs 1,403.89 crore for this quarter—a growth rate of seven point five percent compared to last year’s figures.
Moreover, earnings before interest, tax, depreciation and amortization (EBITDA) saw significant growth as well; it surged sixty-one point eight percent reaching Rs108.74 crore during Q1 FY25.
Expansion Efforts and Retail Growth
Senco Gold continues its expansion strategy with the opening of six new showrooms across various locations including one in Dubai—bringing their total number of outlets up to one hundred sixty-five nationwide. Retail sales have shown robust performance with an annual growth rate standing at nine point six percent while same-store sales increased by four percent during this period.
Over the past twelve months alone, Senco Gold’s shares have appreciated dramatically—gaining one hundred sixty-six point sixty-four percent compared to BSE Sensex’s rise which stood at twenty-eight point seven percent within that timeframe.
Student at Government College of Engineering Kolkata and an enthusiastic Journalist. Follows Topics such as Indian Politics, Gaming, Anime, etc. Click on the bell icon for more news and opinions from Srijan.
