Multibagger Alert: Senco Gold Stock Soars 300% Since IPO – Is More Growth on the Horizon? Analysts Weigh In!

Senco Gold’s stock has skyrocketed by 300% from its initial public offering (IPO) price of ₹317 in just over a year, giving investors huge returns. According to a recent report by Emkay Global Financial Services, there’s potential for even more growth for this jewellery stock. The report highlights strong sales growth in the second quarter and a significant discount in valuation compared to peers like P N Gadgil.

While Senco Gold only saw an 11% increase in sales in the first quarter, the brokerage believes the company is on track to meet or exceed its annual growth target of 18–20%. Senco is currently trading at a discount of 45–55% compared to larger jewellery companies like Titan and Kalyan, and around 25% lower than P N Gadgil on a trailing basis (FY24 earnings).

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Emkay Global expects Senco to continue performing well, helped by a recent reduction in gold import duties and strong demand in the jewellery market. They have increased their price target to ₹1,600 per share by September 2025. However, they also warned that any fluctuations in profit margins could be a risk to the stock’s growth.

In the first quarter of the current fiscal year (April-June 2024), Senco Gold reported a net profit of ₹51.27 crore, an 85.4% increase compared to the previous year. The company’s revenue also grew by 7.5%, reaching ₹1,403.89 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 61.8% to ₹108.74 crore.

Senco Gold Share Price

On the day of this report, Senco Gold’s stock rose by 6.7%, hitting a new 52-week high. However, by the end of the day, the stock stayed flat due to some profit-taking.

Rajesh Bhosale, an analyst at Angel One, said, “Even though there’s been some profit booking, the overall trend remains positive. Any dips can be seen as buying opportunities, with ₹1,200 as support and ₹1,480 as the next resistance level.”

Similarly, Ruchit Jain, a Lead Research Analyst at 5paisa, pointed out that the stock is in a “Higher Top Higher Bottom” formation, which indicates a strong uptrend. However, he advised investors to wait for price corrections before buying, as the stock is currently overbought. Support levels are around ₹1,140 and ₹1,050.

Senco Gold IPO Performance

Senco Gold went public on July 14, 2023, debuting at ₹430 per share on the NSE—about 36% higher than its IPO price. On the BSE, it listed at ₹431 per share. The company had set its IPO price range between ₹301 and ₹317 per share.

The IPO received strong demand from investors. By the final day, the retail portion was oversubscribed 16.28 times, while institutional buyers subscribed 190.56 times, and non-institutional investors (NIIs) 68.44 times. Overall, the IPO was oversubscribed by 77.25 times.