The shares of the Jewellery stock company, specializing in designing and retailing high-quality gold, diamond, and platinum jewellery have declined upto 15 percent and are trading at a discount of more than 60 percent from the all-time high of Rs. 772.
Price action
With a market capitalization of Rs. 5,180.55 crores on Monday, the shares of Senco Gold Limited fell upto 14.8 percent making a low of Rs. 304.50 per share compared to its previous closing price of Rs. 357.60 per share.
What Happened
Senco Gold Limited engaged in designing and retailing high-quality gold, diamond, and platinum jewelry stock is been trading at a discount of more than 60 percent from the all-time high of Rs. 772.
Reason for the Fall
The company has recently announced its quarterly results its Total Revenue has risen by 27 percent from Rs. 1,661 in Q2FY25 crore to Rs. 2,115.24 crore in Q3FY25 but its Net profit has declined by 69 percent from Rs. 109.32 crore in Q2FY25 crore to Rs. 33.48 crore in Q3FY25.
Additionally, weak economic growth, foreign fund outflows, and a downturn in the small-cap sector have contributed to investor pessimism, and the stock has been continuously bearish. Recently, in the last two trading days, the stock has declined by up to 30 percent.
Furthermore, from a technical point of view, the stock recently formed a death crossover, which is a sign of bearishness. The death crossover occurred on 30th January for Rs. 540.03 with a volume of 32.33K and since the crossover, the stock has declined by up to 35 percent.
About the Company
Senco Gold is a renowned jewelry retail brand in India, known for its high-quality gold, diamond, and platinum jewelry. They offer a wide range of traditional and contemporary designs, catering to diverse customer preferences. The brand is recognized for its craftsmanship, trust, and commitment to ethical sourcing and purity.
Written by Sridhar J
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