Senco Gold Ltd’s shares soared to an upper circuit limit, gaining 5% by early afternoon on April 9, 2025. The stock opened at an impressive Rs 318.25 on the National Stock Exchange (NSE), marking a significant increase from its previous closing price of Rs 303.10. This surge marks the second consecutive trading session where Senco Gold has reached its upper circuit limit. By 12:30 p.m. IST, trading volume had hit 12.82 lakh shares.
Strong Business Performance Fuels Stock Surge
The recent rise in Senco Gold’s stock is largely attributed to the company’s promising Q4 FY25 business performance. A surge in wedding and festive demand led to increased customer engagement, resulting in a 6% rise in invoice volume. Notably, both the Average Transaction Value (ATV) and Average Selling Price (ASP) experienced substantial growth, with increases of 16% and 17%, respectively.
- Standalone revenue growth: 19.1% YoY
- Retail growth: 23%
- Same-store sales growth (SSSG): 18.4% for Q4, 14.6% for FY25
Senco Gold’s performance in smaller Tier 3 and Tier 4 towns outpaced growth in metropolitan and Tier 2 areas. The company reported a 23% increase in revenue, surpassing Rs 1,100 crore for FY25, compared to Rs 940 crore in FY24.
Expansion and Marketing Strategies
In FY25, Senco Gold added 15 new showrooms, including 6 franchise outlets, boosting its total showroom count to 175. Enhanced marketing strategies led to a remarkable 39% YoY increase in diamond jewellery sales for Q4, contributing to an overall 14.2% annual growth.
The introduction of 11,125 new gold designs and 4,300 diamond jewellery designs in Q4 was aimed at refreshing the product lineup. Additionally, the company launched the “SheForHer” campaign in celebration of International Women’s Day.
Market Dynamics and Future Outlook
The fluctuations in gold prices during Q4 prompted a significant rise in old gold exchanges, with pre-owned jewellery making up 40% of total sales, particularly from non-Senco customers. The adjusted EBITDA margin was slightly impacted by customs duty changes, settling at 6.2%. However, expectations of robust diamond sales are likely to enhance margins moving forward.
In Q4, gold prices saw an 11% quarter-on-quarter increase and a staggering 33% year-on-year rise, reaching an all-time high of USD 3,150 per ounce. This growth is bolstered by strong consumer sentiment and ongoing purchases by central banks.
Strategic Plans for FY26
Looking ahead to FY26, Senco Gold anticipates a strong start, driven by festive demand and improved consumer purchasing power facilitated by recent price adjustments. The company aims to open 5–7 new stores in Q1 FY26 and expand its reach through 70 SIS outlets, ultimately bringing the total to approximately 100 by March 2026.
Furthermore, Senco Gold’s subsidiary, Sennes Fashion Limited, plans to introduce 5–7 new stores that will focus on lifestyle products, including lab-grown diamonds, leather accessories, and perfumes.
Shareholding Trends and Stock Performance
As of December 2024, there were notable changes in Senco Gold’s shareholding structure. Promoters reduced their stake to 64.10%, while Domestic Institutional Investors (DIIs) increased their holding to 13.31%. Foreign Institutional Investors (FIIs) also raised their stake from 8.58% to 8.88% during the same period.
Over the last two trading sessions, Senco Gold’s stock has appreciated by 10%, while the BSE Small-cap index merely rose by 0.87%. Since its listing in July 2023, the stock has delivered impressive returns of 48%, despite experiencing a 22% decline over the past year.
For those looking to stay informed about investment opportunities, it’s crucial to conduct thorough research and consult financial advisors to align with personal financial goals.
Disclaimer: This article serves informational purposes only and should not be construed as investment advice.
