Senco Gold shares soar to record high after jewellery retailer posts strong Q4 business update

Senco Gold shares soared on Tuesday, a day after the gold jewellery retailer shared its business update for the fourth quarter of FY24 ended on March 31, 2024. The Senco stock gained by as much as Rs 114.45 or 12 per cent to Rs 1,065.65 on BSE today, April 16.

The pan-India jewellery firm reported 39 per cent year-on-year (YoY) growth in its revenues for Q4FY24 while for the entire fiscal, company's revenue growth was 28 per cent YoY. Senco Gold also shared that its volume growth increased by 13 per cent in gold and 19 per cent in diamond as compared with last year.

Meanwhile, the company's shares were trading at Rs 1,010.95 each, up 6.28 per cent on BSE today at 11.19 PM.

After Q4 updates, the company's shares skyrocketed on Monday, April 16, jumped 18.59 per cent. The stock reported more than 30 per cent growth in one week.

Senco Gold's Q1FY25 outlook

According to the company, demand will increase with the start of Ugadi, Baisakhi, and Akshaya Tritiya and the wedding season. 

Analysts at Emkay Global Financial Services increased the target price of Senco Gold shares from Rs 925 to Rs 1,100 per share as the company's SSSG (Same-store sales) growth is better than its peers.

"Despite the run-up in the stock, valuations are cheaper than competitors. Studded mix is expected to account for 20 per cent of the income, and EBITDA is expected to grow at CAGR of 23-27 per cent in FY24-26," according to Emkay Global.

A look at Senco Gold's Q3FY24 results

Senco reported a 5.8 per cent growth in consolidated profit after tax at Rs 109.32 crore for the quarter ended December 31, 2023. The company's profit after tax (PAT) stood at Rs 103.35 crore during the corresponding quarter of the previous fiscal.

The company's revenue from operations grew by 23.3 per cent during the quarter under review at Rs 1,652.20 crore, compared to Rs 1,339.63 crore in the same period of the previous year.

Senco Gold: Past performance

Since its market debut in July 2023, Kolkata-headquartered Senco Gold has given multi-bagger returns. The company's shares were listed at Rs 405.3 apiece. It has given more than 40 per cent returns on a year-to-date (YTD) basis while almost 35 per cent returns in one month.