Senco Gold shines in trade as brokerages optimistic on growth

For the quarter ended June, Senco Gold posted a net profit of Rs 51.27 crore.

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26 Aug, 2025 12:21

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Senco Gold shares have climbed 15 percent over the past month and the rapid ascent continues, with the gold jeweller's shares trading higher by around two percent in trade on August 16.

For the quarter ended June, Senco Gold posted a net profit of Rs 51.27 crore. This was higher by 85.4 percent on-year, led primarily by a rising topline. The jewellery chain's revenue grew 7.5 percent YoY to Rs 1,403.89 crore for the quarter ended June 30.

At 2.30 pm, Senco Gold shares were higher by 2.2 percent, quoting Rs 1,123.3 on the NSE.

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Senco Gold is strategically expanding its presence in eastern markets and other regions. The company aims to grow its consumer base by focusing on lightweight jewellery and capitalizing on the trend of studded jewellery, thereby expanding into more geographical areas.

The revenue performance was impacted by various factors, including elections, heatwaves and fluctuation in gold prices. During Akshaya Tritiya, sales over the 41-day period increased by 21 percent in terms of sales value. As a result, Motilal Oswal reiterated its buy call on the counter, with a target price of Rs 1,350 per share.

The sudden spike in gold price and operating challenges led to a modest retail revenue growth of 11 percent in Q1, in line with muted trends, said Emkay Global. The brokerage maintained its buy call, with a target price of Rs 1,400 per share. This indicates an upside of 27.4 percent.

"A big 900 bps duty cut on gold and return of operating normalcy has driven a strong recovery with FY25TD retail growth climbing to ~20 percent. Senco has retained its FY25 growth outlook of 18-20 percent. The EBITDA margin beat of ~250 bps was led by better franchisee terms, lower discounting/better gold premium, and a low-margin base as hedging remained at ~95 percent in Q1," added the brokerage.

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