Senco Gold Ltd shares recorded a sharp correction today, sliding 20 per cent to settle at Rs 357.60 after posting a 'disappointing' set of numbers in the third quarter of the ongoing financial year 2024-25 (Q3 FY25). At Friday's closing value, the stock has crashed 36.53 per cent in the calendar year 2025 so far.
The Kolkata-headquartered jewellery maker's consolidated net profit tumbled 69.4 per cent to Rs 33.4 crore in the December 2024 quarter compared to Rs 109.3 crore in Q3 FY25 due to high gold prices. Earnings before interest, tax, depreciation and amortisation (Ebitda) slipped 56 per cent to Rs 79.96 crore in Q3 FY25 as against Rs 181.1 crore in the year-ago period. Revenue from operations, however, moved up 27.3 per cent to Rs 2,102.5 crore in Q3 FY25 compared to Rs 1,652.2 crore in Q3 FY24.
"Senco Gold's December quarter results have been fairly disappointing and because of this, the stock is falling. Investors with a long-term horizon can consider holding on to it. And, those with a medium-term view can sell on rallies," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
On technical setup, support could be seen in the 350-330 range. Resistance may be found around Rs 400 level and a decisive breach is required for further upside potential.
"The stock is showcasing a bearish stance. The next potent support lies around the Rs 350-330-odd zone. On the higher end, the bearish gap of Rs 400-435 represents a strong hurdle in the near period," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"Senco Gold is bearish but also oversold on daily charts with next support at Rs 333. Investors should buy only if a daily close is above the resistance of Rs 398.4 which could lead it to an upside target of Rs 460 in the near term," said Sebi-registered research analyst AR Ramachandran.
The scrip traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 26.97. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the stock has a price-to-equity (P/E) ratio of 20.85 against a price-to-book (P/B) value of 2.03. Earnings per share (EPS) stood at 17.15 with a return on equity (RoE) of 9.74.
As of December 2024, promoters held a 64.11 per cent stake in the company.