Gems, Jewellery Stock: 1:2 Stock Split, 31/01/2025 Record Date; Split To Grow?

Senco Gold Limited is the top jewellery retailer in India, with 166 retail stores around the country and one in Dubai, United Arab Emirates. The company has been operating for more than 85 years. Senco Gold has been a prominent jewellery store in India for 85 years, and it has a large number of showrooms. For the fourth consecutive year, TRA has ranked Senco Gold & Diamonds as the second Most Trusted Jewellery Brand. After the company announced the record date for a 1:2 stock split, Senco Gold's shares closed the day 1.85% down at Rs 1027.20, with a market capitalisation of Rs 8,402.75 Cr.

Senco Gold Stock Split Record Date

"Pursuant to Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that in accordance with the approval of the Shareholders of the Company through Postal Ballot on 26th November 2024, the Board of Directors of the company at their meeting held today i.e. 15th January 2025 has fixed the Record Date as mentioned below for the purpose of sub-division/ split of the equity shares of the company, such that 1(one) equity share having face value of Rs 10 (Rupees Ten only) each, fully paid up will be sub-divided/ split into 2(two) equity shares having face value of Rs 5 (Rupees Five only) each, fully paid-up," said Senco Gold in a stock exchange filing.

Senco Gold Business Update: Q3 & 9M FY25

In October 2024, the firm achieved its highest-ever revenues of Rs 1000 Cr+ in a single month, and in Q3FY25, it achieved Rs 2000 Cr+ in a single quarter. The revenue has surpassed the threshold of Rs 6000+ Cr on a TTM basis, demonstrating progress towards a full-year growth of 19%-20%. While retail growth remained consistent at 19% YoY in Q3, the company's overall sales grew 22% YoY in Q3 and 19% YoY in 9M. Through a Qualified Institutional Placement (QIP), the company was able to raise Rs. 459 Cr. and distribute equity shares at a price of Rs. 1,125 per share, or about 3.5 times the IPO price. Both new and old investors showed a great deal of interest in the offering.

The equity share capital base has grown from 7.77 Cr to 8.18 Cr shares in accordance with allocation. With the opening of 12 showrooms in the previous nine months, including 7 of its own locations, the company's showroom portfolio has now grown to 170, including 69 franchisee showrooms. Four additional showrooms were opened during the quarter: Gwalior (MP), Dehradun (UK), Barakar (WB), and Chandaneshwar (Odisha).

Senco Gold Share Price Target

"Senco Gold stock price is slightly bearish on the Daily charts with strong resistance at 1075. A Daily close below support of 994 could lead to a target of 868 in the near term," commented A R Ramachandran, Independent Research Analyst.

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