Senco Gold shares jump 19.5% to all-time high on strong Q4 business update

Shares of Senco Gold, one of the leading pan-India jewelry retailers in India, surged by 19.52% to reach a new all-time high of ₹958 per share during today's trading session. This significant uptick in investor interest follows the release of the company's business update for Q4FY24. 

In the fourth quarter of last fiscal year, the company reported a 39% year-on-year increase in revenue, while for the entire fiscal year, the revenue saw a robust 28% year-on-year growth. Despite the upward trend in gold prices, the company achieved notable volume growth, with a 13% increase in gold and a 19% increase in diamond volumes compared to the previous fiscal year.

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Furthermore, the proportion of old gold exchange as a percentage of sales rose from 29% to 32% year-on-year. Notably, 65% of the old gold exchanged came from non-Senco customers, indicating a notable shift from unorganised to organised players in the market, according to the company.

During the fiscal year 2023-2024, the Same Store Sales Growth (SSSG) reached 19% out of the total retail sales growth, and it was 23% out of a total 30% retail sales growth during Q4. 

The company reported a consistent improvement in the stud ratio, with the blended stud ratio (including both own and franchisee showrooms) increasing to 11.4% from the previous year's 10.4%. Additionally, its own showrooms achieved a stud ratio performance of 13.1%, compared to 12.0% in the previous year.

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During the quarter, key offers were introduced, such as the Siya Ram Collection, Romantique, and Love 2024 on Valentine’s Day, along with the wedding collection. These initiatives helped boost footfall and stimulate sales in line with prevailing market sentiments.

Additionally, the company has achieved the milestone of being the first Indian jewelry brand to join the ONDC (Open Network for Digital Commerce) network.

“This integration marks a crucial step for Senco Gold and Diamonds, as it will now make our extensive catalogue accessible on multiple shopping apps within the growing ONDC Network. This collaboration will also align seamlessly with the company’s visionary commitment to the ‘Make in India’ initiative, thus strengthening its presence across the nation,” the company said in its business update report.

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Multibagger returns

Senco Gold & Diamonds (Senco) is a prominent pan-India jewelry retailer, boasting a rich heritage spanning over eight decades and holding the title of the largest in eastern India based on the number of showrooms. Under the renowned brand 'Senco Gold & Diamonds,' the company distributes its products through various channels, including owned stores, franchise outlets, and diverse online platforms.

The company's shares made their debut on the Indian stock exchanges in July of last year, listing at ₹405.3 per share, marking a notable 28% premium over the issue price of ₹317. Since then, the stock has consistently charted an upward trajectory, achieving multiple milestones along the way.

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Considering the current trading price of the stock, it commands a remarkable 198% premium over its IPO price.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.