Senco Gold Ltd Sees Surge in Stock Prices Amid Strong Q4 Performance

In a remarkable display of market enthusiasm, shares of Senco Gold Ltd soared to their upper circuit limit of a 5% gain during mid-morning trading on April 9, 2025. The stock opened impressively at Rs 318.25 on the National Stock Exchange (NSE), a notable increase from its previous close of Rs 303.10. This marks the second consecutive trading session where Senco Gold has reached the upper circuit limit, reflecting growing investor confidence. By 12:30 PM IST, trading volume hit 12.82 lakh shares.

Positive Q4 Business Update Fuels Investor Confidence

The recent uptick in Senco Gold’s share price can be attributed to a robust Q4 FY25 business update. The company’s performance was bolstered by heightened demand during the wedding and festive seasons, contributing to a 6% rise in invoices. Key metrics such as the Average Transaction Value (ATV) and Average Selling Price (ASP) experienced substantial growth, increasing by 16% and 17% respectively.

• Revenue Growth: Senco Gold achieved a 19.1% total revenue growth and a 23% retail growth on a standalone basis year-on-year in Q4.
• Same-Store Sales Growth: The company reported an SSSG of 18.4% for Q4 and 14.6% for FY25.
• Expansion in Smaller Markets: Growth in Tier 3 and Tier 4 towns outpaced that of metro and Tier 2 cities.

Overall, Senco Gold’s revenue for FY25—excluding the eastern region—surpassed Rs 1,100 crore, a significant increase from Rs 940 crore in FY24.

Strategic Expansion and Marketing Initiatives

During the fiscal year, Senco Gold expanded its footprint by launching 15 new showrooms, including 6 franchise locations, bringing its total to 175 showrooms. Innovative marketing strategies led to a remarkable 39% year-over-year growth in diamond jewellery sales in Q4, contributing to an overall annual growth of 14.2%.

To refresh their product offerings, Senco Gold introduced around 11,125 new gold and 4,300 diamond jewellery designs in Q4 FY25. Additionally, they launched the “SheForHer” campaign in honor of International Women’s Day.

Impact of Gold Price Volatility

The fluctuating gold prices during Q4 prompted an increase in old gold jewellery exchanges, with such exchanges accounting for 40% of overall sales and 61% from non-Senco customers in FY25. Although customs duty cuts impacted margins by 80-90 basis points in Q2 and Q3, the strong performance in diamond jewellery sales is expected to enhance Q4 margins.

• Gold Price Trends: Gold prices saw an 11% rise quarter-on-quarter and a 33% increase year-on-year in Q4, with a six-month surge of 19%, reaching a record USD 3,150 per ounce.

Looking Ahead: Positive Outlook for FY26

As Senco Gold prepares for FY26, the company anticipates a strong start driven by festive demand and improving consumer purchasing power, thanks to recent price cuts. Plans are underway to open 5-7 new stores in Q1 FY26, alongside a strategy to expand customer reach through 70 SIS outlets, aiming for a total of approximately 100 by March 2026.

Additionally, Senco Gold’s subsidiary, Sennes Fashion Limited, is set to launch 5-7 stores specializing in lifestyle products, including lab-grown diamonds and leather accessories.

Shareholding Changes and Market Performance

The shareholding structure of Senco Gold underwent notable shifts as of December 2024. Promoters reduced their stake to 64.10%, while Domestic Institutional Investors (DIIs) increased their holdings to 13.31%. Foreign Institutional Investors (FIIs) also raised their shareholding from 8.58% in September to 8.88% by December.

In the last two trading sessions, Senco Gold’s stock price jumped by 10%, in contrast to the 0.87% rise seen in the BSE Small-cap index. Since its listing in July 2023, the stock has yielded an impressive 48% return, although it is down 22% year-on-year.

Investors are encouraged to conduct thorough research and consult financial advisors before making investment decisions.

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