Shares of Senco Gold Ltd. rose on Thursday after projecting a surge in revenue in its third-quarter business update.
The jeweller's revenue grew 24% year-on-year in the quarter ended December 2023, according to a business update on the exchanges. Sales rose due to key offers during Dhanteras, Pujo and the wedding season, the company said.
It saw a 40% increase in footfall, with a 6% increase in invoices. Senco Gold's gold volume also rose 9%, while diamond jewellery saw a 27% volume jump as gold prices rose. The same store sales growth contributed 17% to the total Q3 growth of the company.
The company's showroom portfolio expanded to 155 showrooms in the April-December period, with the addition of 19 new showrooms.
Emkay Global Financial Services Ltd. has maintained a 'buy' rating on Senco, with a target price of Rs 800 apiece on the stock. In its latest report on the retail industry, it said that the jeweller is beating odds with its higher-than-expected growth.
Shares of Senco Gold surged 15.58% intraday, the highest since listing on July 14, 2023. They pared gains to trade 11.97% higher, compared to a 0.13% advance in the NSE Nifty 50 as of 10:52 a.m.
The stock has risen 103.16% since listing. Total traded volume so far in the day stood at 12 times its 30-day average. The relative strength index was at 72, indicating the stock is overbought.
Both the analysts tracking the company maintain a 'buy' rating, according to Bloomberg data.
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