Senco Gold hits 5% upper circuit, posts highest-ever Q4 revenue in FY25

Senco Gold's topline figure surpassed ₹6,200 crore, marking a solid 19.4 per cent year-on-year (YoY) retail growth

Senco Gold share price: Shares of jewellery maker Senco Gold jumped 5 per cent in the intraday trading on April 9 after the company reported its highest-ever March-quarter revenue during the recently concluded fourth quarter of the financial year 2024-25 (Q4FY25). Senco Gold reported a revenue of over ₹1,300 crore in Q4FY25.

 

For the full financial year 2024-25 (FY25), the company’s topline figure surpassed ₹6,200 crore, marking a solid 19.4 per cent year-on-year (Y-o-Y) retail growth. Same-store sales Growth (SSSG) for FY25 stood at 14.6 per cent with non-east revenue crossing ₹1,100 crore. 

 

According to the company, the strong wedding and festive season has given a boost to Q4 business, leading to more footfalls and improvement in invoices.

 

 

Senco witnessed substantial improvement in diamond jewellery demand growing at 39 per cent Y-o-Y and overall 14.6 per cent in FY25. Additionally, the stud ratio, representing the proportion of studded jewellery sold, improved marginally to 10.9 per cent from 10.5 per cent. 

Read: Gold to face short-term pressure amid risk aversion and profit booking

 

“The growth in Tier 3 and Tier 4 towns outpaced metro and Tier 2 city growth. Our Coin/ bullion sales continue to be a very small fraction of total gold sold below 4 per cent,” the company said. 

 

During FY25, Senco Gold opened 15 new showrooms, including 6 franchisees. Its total showroom portfolio stands at 175, including 72 franchisee showrooms and 1 showroom in Dubai. 

 

Coins and Bullion sales continued to be a very small fraction of total gold sales at less than 4 per cent. 

 

The stock jumped 5 per cent to ₹318.25 per share to hit the upper circuit in the intraday trade today. In comparison, the benchmark Nifty50 was trading at 22,369, down by 166.8 points or 0.74 per cent. 

 

On the year-to-date (YTD) basis, the stock has tanked over 43 per cent compared to a 5.6 per cent decline in Nifty50. The stock has fallen over 20 per cent in the last one year.

 

Brokerage firm Antique Stock Broking remains optimistic about the company's medium-to-long term prospects, citing its strong positioning in East India, strategic focus on lightweight jewellery and the benefits of transition it enjoys from unorganised to organised jewellery retail.

 

The brokerage expects Senco to post 27 per cent profit after tax (PAT) CAGR during FY25-27E led by 19 per cent CAGR in revenue and expansion in Ebitda margin. 

 

“We believe that Senco is well placed to capitalise on the continuing shift in jewellery retail from the unorganised to the organized in India. This will be primarily backed by its design expertise in light gold/studded jewellery and store expansion strategy across metros and smaller towns,” it said. Antique Stock Broking maintains a ‘Buy’ rating with a target price (TP) of ₹510 based on 25x PER on FY27E EPS.