Senco Gold shares slip 4% to hit fresh one-year low; should you add or avoid?

Shares of Senco Gold Ltd extended their losing run for the third consecutive session on Tuesday. The stock fell 3.92 per cent to hit a new 52-week low of Rs 301.05. Last checked, it was down 3.17 per cent at Rs 303.50. At this price, it has crashed 46.11 per cent on a year-to-date (YTD) basis.

The 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 corresponding quarter a year ago. 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. However, revenue from operations jumped 27.3 per cent to Rs 2,102.5 crore in the December 2024 quarter compared to Rs 1,652.2 crore in Q3 FY24.

Analysts, both on the fundamental and technical sides, suggested avoiding the counter at current levels. 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.

"Senco Gold's December quarterly earnings have been disappointing. This is the reason why the stock is in a downtrend. Investors should remain in 'wait-and-watch' mode at present. One should avoid entering it at current levels and those holding should consider selling the counter on rally," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

"Technically, the counter looked weak on daily charts and can slip towards Rs 290 level in the near term. Those holding should consider exiting," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

"Senco has seen a steep correction in the current calendar year, showcasing inherent weakness. The counter has support near the Rs 300-subzones and a breakdown could further disrupt the near-term view. On the higher end, a series of stiff resistance could be seen around Rs 350-360, followed by the Rs 400 zone. A decisive breakthrough above the mentioned zone could only trigger positive momentum in the counter," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

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 26.45. 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 17.66 against a price-to-book (P/B) value of 1.72. 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.