Ambit Capital bullish on Senco Gold's expansion prospects in East India

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26 Aug, 2025 12:21

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Senco Gold has a lot of scope for expansion in eastern India, Ambit Capital said in a report dated September 27.

Senco Gold’s market share is barely 5 percent of the overall jewellery market in eastern India. Senco Gold and Titan make up a total of 15 percent. Ambit says that the third largest player in the eastern region, PC Chandra, is barely 15 percent of the size of Senco Gold, leaving the latter a greater scope for expansion.

“We believe there remains scope for Senco Gold to have many more stores in larger states like Bihar, Jharkhand, and Odisha. Therefore, we expect Senco to continue expanding its presence in the east and build 13 stores this year,” said Ambit Capital.

Also read Ambit Capital bullish on Senco Gold's expansion prospects in east India

Outpacing Kalyan Jewellers 

Over FY19-23, Senco Gold experienced a 13 percent growth in its overall revenue. This growth was primarily driven by a combination of factors, including a 9 percent increase in the number of stores and approximately 10 percent growth in Same-Store Sales (SSG) within their owned and franchisee outlets. While Senco Gold’s growth rate was slightly behind Titan, which achieved a 19 percent increase in its overall revenue, it outperformed Kalyan, which managed a 10 percent CAGR during the same period.

Ambit Capital has a buy rating on the stock with a target price of Rs 730 per share. The brokerage firm expects revenues for Senco Gold to grow at 33 percent over FY23-44.

Ambit Capital considers Senco's implied market share without factoring in franchisee margins to translate to approximately 2.4 percent of the overall jewellery industry and about 4 percent of the organised jewellery sector.

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