Senco Gold rises 6% after strong Q1 update; old gold exchange drives sales

Senco Gold said that its standalone revenue grew around 60 per cent Y-o-Y in Q1, while retail revenue increased 48 per cent and same-store sales growth stood at 38 per cent.

Senco Gold share price today: Shares of jewellery retailer Senco Gold surged over 6 per cent in intraday trade on Monday after the company reported a strong business update for the June quarter of FY27 (Q1FY27). The stock opened 4 per cent higher at ₹339.25 and climbed to an intraday high of ₹348.50 on the National Stock Exchange (NSE).

 

As of 11 AM, Senco Gold shares were trading 5 per cent higher at ₹342, outperforming the markets. In comparison, the Nifty 50 was up 0.60 per cent.

 

Today's rally was accompanied by a sharp spike in trading volumes, with nearly 2.4 million shares changing hands, compared with just 0.68 million shares traded in the previous session, according to NSE data.

 

 

Senco Gold Q1 business update 

 

Senco Gold, in its business update for Q1, said that it has expanded its retail footprint by opening eight showrooms during the April-June quarter, taking its network to 208 outlets. The jewellery retailer said it remains on track to add another 12-15 stores over the remaining three quarters of FY27.

 

The company opened three company-owned and company-operated (COCO) stores, four franchise outlets and one Sennes showroom during the quarter, even as it closed one outlet, resulting in a net addition of seven stores. The company indicated that future expansion will focus more heavily on the franchise model.

 

Its standalone revenue grew around 60 per cent Y-o-Y in the quarter, while retail revenue increased 48 per cent and same-store sales growth stood at 38 per cent. Old gold exchange accounted for around 43 per cent of total sales during the quarter.

 

The company, however, cautioned that aggressive market discounting and the customs duty impact may pressure margins in the quarter.   ALSO READ: Defence shares Today    | HDFC Bank gains 2% on Q1 | Stock Market LIVE    

Senco Gold stock: Analyst view 

 

Hitesh Rathi, research analyst at Angel One, said that Senco Gold continues to remain locked in a well-defined sideways trading range, despite forming several bullish technical formations near its 2023 listing price. On the Point & Figure charts, the stock has registered a bullish 100 per cent Pole across all major timeframes around the ₹240–235 zone, highlighting the emergence of demand at lower levels.

 

"Despite these bullish formations, along with a follow-through to the 100 per cent Pole, the stock has largely traded sideways since early last year. The consolidation range remains clearly defined, with resistance placed in the ₹385–400 zone and support in the ₹300–285 band," he said.

 

Unless the stock delivers a convincing breakout from this range, he said, "no meaningful expansion is expected in medium-term momentum." In the near term, a move above the ₹355–360 zone could trigger fresh short-term buying interest, while a breakdown below the ₹325–320 band is likely to accelerate downside selling pressure, he added.    ==========================================  Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.