Senco Gold shares recovered 23% from 52-week low level; what's next?

Shares of Senco Gold Ltd settled higher on Thursday, bucking their two-day falling trend. The stock rose 0.61 per cent to close at Rs 279. At this price, the scrip has climbed 22.53 per cent from its adjusted one-year low of Rs 227.70, seen earlier this month on March 17. Despite the mentioned uptick, it has crashed 50.46 per cent in the calendar year 2025 so far due to weak December 2024 quarter numbers.

The crisis-hit jewellery maker's consolidated net profit tumbled 69.4 per cent to Rs 33.4 crore in Q3 FY25 compared to Rs 109.3 crore in the year-ago period. 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 corresponding period of the last fiscal.

The scrip had staged some recovery after BSE data showed that Senco's promoter group entity, Jai Hanuman Shri Siddhivinayak Trust, picked up an additional 1.61 lakh shares and 80,400 shares on March 18 and March 19, respectively, increasing the holding to 41.31 per cent from 41.16 per cent earlier. Investors usually give a positive response to share purchases done by the promoters.

Bourses BSE and NSE have put the securities of Senco Gold under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

An analyst cautioned market participants, suggesting them on the sidelines until a clear and convincing sign of recovery emerges. Technically, support on the counter could be seen at Rs 275 while a decisive close above Rs 317 is required for further upside potential.

"Senco has been facing a considerable decline in its stock performance, leading to a persistent downward trend with some pullback in recent period. This situation reflects a challenging market environment for Senco. It would be prudent to exercise caution and remain on the sidelines until a clear and convincing sign of recovery emerges," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"Support will be at Rs 275 and resistance at Rs 317. A decisive move above Rs 317 level may trigger a further upside towards Rs 330. The expected trading range will be between Rs 275 and Rs 330 in the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.

As per a recent BSE filing, the combined promoter and promoter group shareholding of Senco was at 64.22 per cent.