Senco Gold shares zoom over 15% on strong Q4 business update

In volume terms, gold sales rose by 13% and diamond sales were up by 19% in 2023-24 despite a sharp rise in precious metal prices. The old gold exchange as a percentage of sales rose to 32% in FY24 from 29% in FY23.

The company in a business update, said that it continues to have an optimistic outlook for the new financial year 2024-25. Festival demand such as local new years like Poila Baisakh, Ugadi and Akshay Tritiya, which falls on May 10, as well as the upcoming marriage season are acting as a tailwind for growth, Senco Gold said.

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Meanwhile, during the year the firm launched 23 showrooms on a net basis (17% growth) including 4 showrooms in Q4, taking the total showroom portfolio to 159, the highest-ever expansion since its inception. During the year, it launched 5 FOFO and 18 COCO showrooms.

The firm also stated in its business update that gold prices continued the northward journey throughout FY24, including in Q4, on account of heightened geopolitical tensions, increased gold buying by Central Banks across the globe, and high US Fed rates.

At 10:31 am, the stock was trading 14.8% higher at Rs 921.2 on BSE. Year-to-date, the stock has surged over 30%, and in the past one month, it has gained 25%.

As per Trendlyne data, the average target price of the stock has been Rs 921, which shows a downside of 1% from the current market prices. The consensus recommendation from 2 analysts for the stock is a 'Strong Buy'.

Senco Gold stock stood higher than the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, and 150-day simple moving averages (SMAs).

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