Earnings woes dim Senco Gold’s shares. Can it regain its spark?
Subscribe to enjoy similar stories. Senco Gold, the leading jewellery brand in eastern India, had a remarkable journey following its debut on the stock market in 2023. It saw a 250% jump from its listing price in July 2023 to ₹772 in October last year.
However, after this peak, its share price began to decline as the markets corrected. The company's third-quarter result on 13 Februarywas a shocker for its shareholders. Its gross margin fell 7.4% year-on-year (YoY) to 11.3%, leading to a 69% decline in profit to ₹33 crores despite revenue growing 27% to ₹2,103 crores.
Consequently, the management tried to pacify the market but the share crashed 32% to a 52-week low of ₹305 in the subsequent two trading sessions. It has been down 60% since October. Senco has a rich brand legacy that spans over eight decades and is the largest organised jewellery retailer in eastern India.
It caters to tier-3 and tier-4 cities and is the second most trusted jewellery brand, per the TRA report. It has 171 showrooms (as of Q3FY25) across 17 states, with a dominant focus on West Bengal, where it has 95 showrooms. The northern region, including Delhi, has 24 showrooms, while another 24 are in eastern India.
Besides, it also has one store in Dubai. Like other retailers, the company operates stores on franchise-owned and company-owned models. Around 59% (or 101) of its showrooms are company-owned, contributing 63% to its total revenue.
Around 41% (or 70) are franchise-owned, contributing 32% to its revenue, as of December 2024. The company offers a diverse range of products, with an average ticket price ranging between ₹36,400 and 83,300. Senco's expertise in selling lightweight jewellery enables it to target a diverse customer base, especially
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