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

Oman India Joint Investment Fund II offloaded over 0.5 million shares, while ICICI Pru bought over 0.4 million shares in the company

Senco Gold shares climbed 5.5 per cent intraday to scale an all-time high of Rs 1,406 on the BSE on Tuesday. The stock gained a day after Oman India Joint Investment Fund II sold 5,89,917 shares via a block deal at Rs 1,280.16 per share. 

Conversely, ICICI Prudential Life Insurance Company bought 4,90,705 shares in the company at Rs 1,280 per share through another block deal.

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

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

Emkay Global had reiterated its 'Buy' rating on Senco Gold in a report dated September 17, 2024.

The brokerage has increased the company's multiple by 15 per cent to 36x earnings per share (EPS) on the back of improved medium-term growth profile with a big 900 basis points (bps) duty cut (on gold) and outperformance against other retail formats.

Senco Gold Q1FY25 results

In terms of financials, Senco Gold reported a net profit of Rs 51.27 crore for the first quarter of the current fiscal (April-June 2024), marking an 85.4 per cent year-on-year (Y-o-Y) increase from the year-ago period.

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

The company's earnings before interest, tax, depreciation, and amortisation (Ebitda) surged by 61.8 per cent to Rs 108.74 crore in Q1FY25.

The jewellery retailer also expanded its retail footprint by opening six new showrooms, bringing its total count to 165, which included a store in Dubai. Retail sales of the company grew 9.6 per cent year-on-year, while same-store sales growth stood at 4 per cent during the quarter.

In the past one year, shares of Senco Gold have gained 166.64 per cent, compared to the BSE Sensex's rise of 28.7 per cent during the same period.