After falling 8 percent in the last one month, the brokerage has now advised buying on this jewelery stock. Many important points have also been put forward regarding expansion in the new jewelery segment.
Brokerage house SBI Securities looks bullish on jewelery company Senco Gold. The company has seen a good increase in sales due to reduction in custom duty on gold and the festive season. After this the brokerage has given Buy rating to this stock.
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The brokerage says that Senco Gold is expanding its store network and opening new stores. The company expects good growth in the future. It is focusing on its studded jewelery segment. The company has opened 8 new stores in the first half of FY2025. There has been only 1.5% increase in profit due to one-time loss in the second quarter of the current financial year. The company’s monthly sales have crossed the Rs 1,000 crore mark in October 2024.
new targets
SBI Securities has said that this stock can give returns of up to 24.5 percent in the next 12 to 18 months. The share is currently trading at Rs 1116.50. According to SBI Securities, the target price of the share for the next 12 to 18 months is Rs 1,376.6. According to SBI Securities, the share price of the company is currently less than its actual value. The brokerage house has pegged the valuation at 41.6 times 1-year rolling forward EPS. The company expects sales to grow by 18% and profit by 15-18% in FY25. The company’s sales have increased by 30.9% due to reduction in customs duty on gold.
The 52 week high of Senco Gold share is Rs 1,544 and 52 week low is Rs 681.40. This year the company’s shares have risen by 58.66%.
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