Senco Gold shines, hits new high after ICICI Pru buys stake

Senco Gold shares rose 3.55 per cent to Rs 1,380 per share on the BSE.

2 minutes of reading Last update: 24 Sep 2024 | 13:09 IST

Shares of Senco Gold rose 5.5 per cent intraday to a record high of Rs 1,406 on the BSE on Tuesday. The stock gained a day after Oman India Joint Investment Fund II sold 589,917 shares in a block trade at Rs 1,280.16 per share.

Meanwhile, ICICI Prudential Life Insurance Company bought 4,90,705 shares of the company at a price of Rs 1,280 per share in another block transaction.

As of June 2024, Oman India Joint Investment Fund II held a 2.03% stake in the company.

At around 11:37 am, Senco Gold shares were up 3.55 per cent at Rs 1,380 per share on the BSE. In comparison, the BSE Sensex was trading 0.09 per cent lower at Rs 84,850 at around the same time.

Emkay Global reiterated a “Buy” rating on Senco Gold in a report dated September 17, 2024.

The brokerage raised the company’s multiple by 15 per cent to 36 times earnings per share (EPS) on the back of improving medium-term growth profile, 900 basis points (bps) duty cut (on gold) and outperformance versus peer retail formats.

Senco Gold Q1 FY2025 Results

Financially, Senco Gold reported a net profit of Rs 51.27 crore for the first quarter of the current financial year (April-June 2024), up 85.4 per cent year-on-year (YoY) over the same period in the previous year.

The Kolkata-based gold and diamond jewellery chain reported a 7.5 per cent year-on-year growth in consolidated revenue at Rs 1,403.89 crore in the quarter ended June 30.

The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 61.8 per cent to Rs 108.74 crore in the first quarter of FY25.

The jewellery retailer also expanded its retail operations by opening six new showrooms, bringing its total to 165, including a store in Dubai. The company’s retail sales rose 9.6 per cent year-on-year, while same-store sales growth was 4 per cent during the quarter.

Senco Gold shares have gained 166.64 per cent in the last one year, while the BSE Sensex index has gained 28.7 per cent during the same period.

First published: 24 Sep 2024 | 13:01 IST