Senco Gold Limited, a prominent jewelry retailer in India, holds the title of being the largest organized jewelry retail player in the Eastern region. With a widespread network of stores, it has solidified its position in the market. In this post, we’ll evaluate whether investing in SENCO Golds and holding them throughout 2024 is a prudent choice. Additionally, we’ll analyze Senco Gold’s projected share price targets spanning from 2024 to 2030.
About Senco Gold
Senco Gold stands as the foremost jewelry retail giant in the dynamic landscape of East India, proudly holding the mantle with a vast network spanning 150 stores. These establishments, ranging from large-scale outlets to smaller boutique formats, serve as vibrant hubs showcasing an extensive array of exquisite jewelry pieces. Beyond the allure of gold and diamond adornments, Senco Gold’s offerings extend to include a diverse spectrum of precious metals such as silver and platinum, as well as an enticing array of precious and semi-precious stones. Catering to the discerning tastes of its clientele, the brand boasts an impressive catalog boasting over 108,000 distinctive designs for gold jewelry and a further 46,000 captivating designs for diamond jewelry. Under the illustrious banner of “Senco Gold & Diamonds,” this esteemed brand continues to captivate hearts and adorn patrons with timeless elegance and sophistication.
Senco Gold Q4 FY24 Results: Summary and Key Points
- Senco Gold’s Q4 performance showcases robust revenue growth of 39% compared to the same period last year.
- The company’s same-store-sales-growth surged by an impressive 23% during the quarter, surpassing competitors like Titan and Kalyan Jewellers.
- Expansion efforts were evident as the company added four new stores in Q4, contributing to a total of 23 stores for FY 2024, marking a record high for additions in a financial year.
- The studded ratio improved from 10.5% to 11.5%, indicating an increase in high-value jewelry sales.
- Despite global gold price increases, Senco Gold experienced a notable 13% rise in gold sales volume and a 19% increase in diamond sales volume for FY 2023-24.
- The old gold exchange as a percentage of sales rose to 32%, highlighting effective customer engagement strategies.
- The company maintains an optimistic outlook for the new financial year, foreseeing heightened demand during festive seasons and events such as Akshaya Tritiya.
- Following the announcement of Q4 results, Senco Gold shares surged by up to 15%, reaching ₹916, nearly tripling from its IPO price of ₹317 since its public listing in September last year.
As of June 16, 2024, Senco Gold’s market capitalization is valued at ₹7,603 crore, with the current stock price at
₹978.
How to purchase Senco Gold Shares?
Below are the trading platforms that you can use to purchase Senco Gold shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
Senco Gold Share Price Target 2024 to 2030
Senco Gold Share Price Target 2024
| When | Maximum Price | Minimum Price |
| June 2024 | 990.70 | 861.48 |
| July 2024 | 980.80 | 852.87 |
| August 2024 | 1,020.03 | 886.98 |
| September 2024 | 1,060.83 | 922.46 |
| October 2024 | 1,040.03 | 904.37 |
| November 2024 | 1,081.63 | 940.55 |
| December 2024 | 1,092.45 | 949.95 |
In 2024, the projected monthly maximum and minimum prices for Senco Gold are expected to be as follows: In June, the prices are projected to range between ₹990.70 and ₹861.48. In July, the prices are expected to range from ₹980.80 to ₹852.87. In August, the prices are anticipated to be between ₹1,020.03 and ₹886.98. In September, the prices are forecasted to be between ₹1,060.83 and ₹922.46. In October, the expected price range is ₹1,040.03 to ₹904.37. In November, the prices are projected to be between ₹1,081.63 and ₹940.55. Finally, in December, the prices are expected to range from ₹1,092.45 to ₹949.95.
Senco Gold Share Price Prediction 2025
| When | Maximum Price | Minimum Price |
| January 2025 | 1,103.37 | 848.75 |
| February 2025 | 1,114.52 | 857.32 |
| March 2025 | 1,137.92 | 875.32 |
| April 2025 | 1,126.65 | 866.66 |
| May 2025 | 1,093.84 | 841.42 |
| June 2025 | 1,143.06 | 879.28 |
| July 2025 | 1,120.65 | 862.04 |
| August 2025 | 1,155.31 | 888.70 |
| September 2025 | 1,169.17 | 899.36 |
| October 2025 | 1,199.57 | 922.75 |
| November 2025 | 1,229.56 | 945.82 |
| December 2025 | 1,284.89 | 988.38 |
In 2025, the projected monthly maximum and minimum prices for Senco Gold Share are expected to range as follows: In January, the prices are forecasted to be between ₹1,103.37 and ₹848.75. February is expected to see prices from ₹1,114.52 to ₹857.32. March projections are ₹1,137.92 to ₹875.32, while April is expected to range from ₹1,126.65 to ₹866.66. In May, prices might fall between ₹1,093.84 and ₹841.42. For June, the forecast is ₹1,143.06 to ₹879.28. July is projected to have prices from ₹1,120.65 to ₹862.04, and August might range between ₹1,155.31 and ₹888.70. September is expected to see prices from ₹1,169.17 to ₹899.36, and in October, they might range from ₹1,199.57 to ₹922.75. November projections are ₹1,229.56 to ₹945.82, and in December, the prices are expected to be between ₹1,284.89 and ₹988.38.
Senco Gold Share Price Target 2026 – 2030
| Year | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| 2026 | ₹1,467.94 | ₹887.56 |
| 2027 | ₹1,594.73 | ₹976.31 |
| 2028 | ₹1,952.62 | ₹976.31 |
| 2029 | ₹2,1690.58 | ₹945.29 |
| 2030 | ₹2,397.76 | ₹1,538.43 |
As we progress through the years, Senco Gold’s shares are expected to demonstrate a steady upward trajectory in their maximum and minimum prices. In 2026, shareholders may witness the company’s shares reaching a maximum price of ₹1,467.94, while the minimum price is projected to stand at ₹887.56. As we move into 2027, Senco Gold’s shares could potentially surge to a maximum of ₹1,594.73, with a corresponding minimum of ₹976.31. The trend continues into 2028, with expectations of the company’s shares peaking at ₹1,952.62 and maintaining a minimum of ₹976.31. By 2029, Senco Gold’s shares are anticipated to experience a substantial increase, with the maximum price forecasted to be ₹2,1690.58 and the minimum price estimated at ₹945.29. Finally, as we reach 2030, Senco Gold’s shares are anticipated to achieve a maximum price of ₹2,397.76, while the minimum is expected to settle at ₹1,538.43.
Financial Condition of Senco Gold: Last 5 years
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM | |
| Sales + | 2,484 | 2,420 | 2,660 | 3,535 | 4,076 | 4,914 |
| Expenses + | 2,318 | 2,197 | 2,479 | 3,247 | 3,746 | 4,557 |
| Operating Profit | 166 | 223 | 182 | 287 | 330 | 356 |
| OPM % | 7% | 9% | 7% | 8% | 8% | 7% |
| Other Income + | 9 | 9 | 15 | 13 | 32 | 37 |
| Interest | 43 | 63 | 73 | 80 | 98 | 103 |
| Depreciation | 16 | 37 | 40 | 42 | 45 | 55 |
| Profit before tax | 116 | 132 | 84 | 178 | 219 | 236 |
| Tax % | 36.00% | 31.00% | 26.00% | 27.00% | 26.00% | |
| Net Profit + | 75 | 91 | 62 | 130 | 161 | 178 |
| EPS in Rs | 14.03 | 17.1 | 11.57 | 24.47 | 28.81 | 24.67 |
| Dividend Payout % | 0% | 0% | 13% | 4% | 5% |
Over the preceding half-decade, the company has showcased a commendable trajectory of sales growth, with revenues nearly doubling from March 2019 to March 2023. Throughout this period of expansion, the company has adeptly navigated its expenses, maintaining a delicate equilibrium between revenue escalation and prudent cost management. This equilibrium is underscored by the consistent stability of operating profit margins, which have largely remained within the healthy range of 7% to 9%, showcasing the company’s resilience and adaptability in varying market conditions. Furthermore, the company has demonstrated versatility by diversifying its income streams, evident in the significant surge in other income sources over the years. Despite anticipated escalations in interest and depreciation expenses in tandem with growth, the company’s steadfast commitment to enhancing operational efficiency is evident in the upward trajectory of profit before tax. This strategic focus, coupled with effective tax management, has fortified net profit, leading to a sustained increase in earnings per share. Additionally, the company’s dedication to maximizing shareholder returns is evidenced by the gradual augmentation in dividend payout percentage, reflecting its unwavering commitment to shareholder value creation. Collectively, these financial metrics serve as a testament to the company’s adeptness at driving sustained growth, managing expenses prudently, and delivering value to its stakeholders amidst a dynamic and evolving business landscape.
Frequently Asked Questions (FAQs)
Frequently Asked Questions (FAQs)
1. What is Senco Gold’s current market capitalization?
- The current market capitalization of Senco Gold stands at ₹7,603 Crores.
2. What is the latest share price of Senco Gold?
- Senco Gold’s current share price is ₹978.
3. What is the Price-to-Earnings (P/E) ratio of Senco Gold’s stock?
- The P/E ratio of Senco Gold’s stock is 40.3.
4. What are Senco Gold’s share price targets for 2025?
- Senco Gold’s share price targets for 2025 range from a minimum of ₹841.42 to a maximum of ₹1,284.89, with gradual increases throughout the year.
5. What are the projected share price targets for Senco Gold from 2026 to 2030?
- The anticipated share price targets for Senco Gold from 2026 to 2030 depict a progressive growth trend, with both maximum and minimum levels ascending annually.
6. Is it advisable to hold Senco Gold shares for the long term?
- According to Vaibhav Kaushik, a Research Analyst at GCL Broking, Senco Gold represents a quality investment opportunity with promising prospects for sustained long-term growth.
7. What is Senco Gold’s current dividend payout percentage?
- Senco Gold’s current dividend payout percentage stands at 5%.
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Conclusion
In summary, Senco Gold Limited stands as a formidable player in India’s competitive jewelry industry, leveraging its unique strengths and market presence to carve out a significant niche. As the largest organized jewelry retail player in the Eastern region, boasting a network of 150 stores offering a diverse array of jewelry options, Senco Gold underscores its dominance in the market.
Specializing in gold and diamond jewelry, Senco Gold maintains a steadfast commitment to providing hallmarked and certified products, ensuring quality and authenticity for its customers. The company’s financial performance over the past five years paints a compelling growth narrative, characterized by consistent upticks in sales, operating profit, and net profit, signaling robust financial health and growth prospects.
Market analysts and experts have expressed optimism regarding Senco Gold’s share price targets, indicating potential growth opportunities in both the short and long term. However, prudent investors should conduct thorough due diligence, align their investment objectives, and assess risk tolerance when navigating the dynamic Indian jewelry market.
While Senco Gold presents promising investment opportunities, market conditions can be volatile, emphasizing the importance of careful consideration and consultation with financial advisors. In this comprehensive analysis of Senco Gold’s operations, growth strategies, market position, and investment potential within the vibrant Indian jewelry sector, every aspect has been thoroughly examined.
In my personal view, Senco Gold represents a compelling investment prospect, given its immense growth potential. With a market capitalization of less than ₹8,000 Crores, the company has the capacity to potentially multiply its value several times over as its business expands.
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