Stock Of The Day: Senco Gold Shines With Positive Demand Outlook In FY25— Key Levels
Here's all you need to know about Senco's FY24 revenue and volume rise.
Senco Gold Ltd. reported a growth in its revenue and volumes in financial year 2024 despite rising gold prices and market volatility. Revenue of the jeweller jumped 28% in the last fiscal and 39% year-on-year in the quarter ended March, according to a business update. Its volumes also rose, with gold reporting a 13% increase and diamonds seeing a 19% growth in fiscal 2024.
Shares of Senco Gold were trading 17.55% higher on the NSE, compared to a 0.62% fall in the benchmark Nifty 50 as of 11:29 a.m. The stock has risen 132.06% in the last 12 months.
Key Levels To Watch
Resistance level: Rs 958 per share (life high).
Support level: Rs 771 per share (two-day low).
Industry Outlook
Gold rates surged from $2,051 per ounce to $2,253 per ounce in the fourth quarter. This impacted domestic gold prices as they hit an all-time high of Rs 67,670 per 10 gram in March. This price rise also led to squeeze in the working-capital availability.
Despite challenges posed by the significant increase in global and domestic gold prices, Senco Gold remains optimistic about the future. With new years, auspicious occasions and the upcoming marriage season, the company anticipates a favourable business environment for the current fiscal.
Business Updates
Senco Gold witnessed a significant increase in old gold exchange as a percentage of sales, rising from 29% to 32% year-on-year. Almost 65% of this exchange, came from non-Senco customers, indicating a notable shift from the unorganised to the organised sector.
Senco Gold & Diamonds' same-store sales increased 19% in the last fiscal, contributing significantly to overall retail sales growth.
The company achieved consistent improvement in its stud ratio, with the blended stud ratio improving to 11.4%, driven by a notable performance in its own showrooms, which achieved a stud ratio of 13.1%.
Showroom Expansion
Senco Gold & Diamonds continued its strategic expansion with the launch of 23 new showrooms during the year, including four showrooms in the fourth quarter alone. This marked the highest-ever expansion since its inception. The total showroom portfolio reached 159, reflecting the company's commitment to growth and market penetration.
Product Launches And Offers
Senco Gold & Diamonds enhanced its product offerings with the launch of the Siya Ram collection, Romantique, and Love 2024 on Valentine’s Day, along with the wedding collection. These launches, coupled with attractive offers on platinum, silver and gossip jewellery, bolstered footfall and catalysed sales, in line with market sentiments.
The introduction of the 'Rajwada Vivaah Collection,' designed for brides-to-be, accompanied by exciting offers across various jewellery categories, strengthened the company's market position and customer engagement.
