The shares of the Jewelry stock company, specializing in designing and retailing high-quality gold, diamond, and platinum jewelry are in focus after management expects to reach an EBITA Margin of 7 percent to 8 percent by Q4.
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.
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.
Guidance of Senco Gold Ltd
According to the company’s recent conference call update, they target EBITDA margins of 7 percent to 8 percent by next quarter and also target 14 percent to 15 percent adjusted gross margin on a standalone basis by this quarter.
However, the company’s 9-month FY25 reported EBDITA margins are at 5 percent and adjusted EBITDA at 6.2 percent, their full-year guidance for FY25 adjusted EBITDA margins is 6.5 percent to 6.8 percent range.
Furthermore, they stated that these margins are always subject to competitive intensity, stud ratio, and discounts being offered by peers are gold metal itself. We believe that due to our strategic locational advantage, the low Opex Model will yield operating leverage and will continuously improve our EBITDA margins from the above levels on a mid-term and long-term basis.
Financial Performace (Q3FY25)
The company’s Revenue from operations grew by 27.3 percent YoY from Rs. 1,661.11 crores in Q3FY24 to Rs. 2,115.24 crores in Q3FY25 and it grew by 39 percent QoQ from Rs. 1,515.4 crores in Q2FY25 to Rs. 2,115.24 crores in Q3FY25.
Its Net Profit declined by 69 percent YoY from Rs. 109.32 crores in Q3FY24 to Rs. 33.48 crores in Q3FY25 and it grew by 176 percent QoQ from Rs. 12.12 crores in Q2FY25 to Rs. 33.48 crores in Q3FY25.
Recent Corporate actions
The company raised Rs. 459 crores through a Qualified Institutional Placement on December 24, and its equity share capital base has expanded from 7.77 crores to 8.18 crore shares.
Additionally, the company announced a 1:2 stock split (each share with a face value of Rs. 10 was split into two shares with a face value of Rs. 5 each), making the shares more affordable and accessible to retail investors while improving overall liquidity in the market.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
