Back-To-Back Upper Circuit Stock: Eastern India’s Largest Jewellery Retailer Reports Strong Q4 FY25 Business Update - Momentum Likely to Sustain in Q1FY26
The strong performance in Q4 was driven by strong wedding and festive demand, which led to increased footfalls and a 6 per cent improvement in invoices
Shares of Senco Gold Ltd were locked at an upper circuit limit of 5 per cent gain by mid-morning trade on April 9, 2025. The stock opened at an upper circuit limit of Rs 318.25 on NSE, significantly higher than its previous close of Rs 303.10. This marks the second trading session where the stock has hit an upper circuit limit of 5 per cent. At 12:30 p.m. IST, the total volume traded on the NSE was 12.82 lakh shares.
The share price of Senco Gold was seen buzzing following the company's robust Q4 FY25 business update. The strong performance in Q4 was driven by strong wedding and festive demand, which led to increased footfalls and a 6 per cent improvement in invoices. Additionally, Average Transaction Value (ATV) and Average Selling Price (ASP) grew by 16 per cent and 17 per cent, respectively.
In Q4, on a standalone basis YoY, the company has achieved total revenue growth of 19.1 per cent and retail growth of 23 per cent. The SSSG (same-store sales growth) was 18.4 per cent in Q4 and 14.6 per cent in FY25. The growth in Tier 3 and Tier 4 towns outpaced metro and Tier 2 city growth. The company’s revenue generated, excluding the eastern region, for FY 25 has crossed Rs 1,100 crore as against Rs 940 crore in FY 24, growing at 23 per cent.
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During the year, the company launched 15 showrooms (net) in FY25, including 6 franchisees, increasing the showroom portfolio to 175. With the strong marketing campaigns, in Q4, the company achieved a 39 per cent YoY growth in diamond jewellery sales, which led to 14.2 per cent overall growth in an entire year.
The company launched around 11,125 new gold and 4,300 diamond jewellery designs in Q4 FY25 to refresh its portfolio. The "SheForHer" campaign was also introduced to celebrate International Women’s Day.
The sharp volatility in gold prices during Q4 led to an increase in old gold jewellery exchanges, with old gold contributing 40 per cent to overall sales and 61 per cent from non-Senco customers FY25.
Customs duty cuts and other factors impacted margins by 80–90 bps in Q2 and Q3, leading to a 6.2 per cent adjusted EBITDA margin. However, strong diamond jewellery sales are expected to boost Q4 margins with a positive outlook. Q3 has absorbed the full impact of the duty cut, and no further margin pressures are anticipated in Q4 FY25.
Gold prices continued their upward trend in Q4, rising 11 per cent quarter-on-quarter and 33 per cent year-on-year. Over the past six months, gold has surged 19 per cent, hitting a record high of USD 3,150 per ounce. Strong consumer sentiment and sustained central bank buying have elevated demand and prices.
The company expects a strong start to FY26, driven by festive demand and rising consumer purchasing power, aided by recent price cuts. To strengthen market presence, the company plans to open 5–7 new stores in Q1 FY26. Furthermore, it plans to extend its reach further to customers through the SIS model and launch about 70 such SIS outlets, taking the total to about 100 by Mar 26.
Company’s subsidiary - Sennes Fashion Limited, will also launch 5–7 stores focused on lifestyle products like Lab grown diamonds, leather accessories and perfumes.
As of December 2024, the shareholding pattern had some notable changes. Compared to the quarter ended September 2024, promoters shed their holding to 64.10 per cent, decreasing from 67.47 per cent to 64.10 per cent, and DIIs' holding increasing from 9.58 per cent to 13.31 per cent. The FII’s also have increased their shareholding from 8.58 per cent in September to 8.88 per cent in December 2024.
In the last two trading sessions, the company's stock price has jumped by 10 per cent while the BSE Small-Cap index has surged by 0.87 per cent only. Since the Senco Gold listing (July 2023), the stock price has logged 48 per cent returns. Looking at the yearly performance, it is down by 22 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.