The shares of Senco Gold Limited surged by 4.5% on October 9, 2024, following the business updates for the second quarter where the retail growth was 27% up.

The company’s recent exchange filing indicated that its jewellery business experienced growth. Retail growth stood at a strong 27% year-on-year (YoY) in the second quarter (Q2) and 19% in the first half (H1) YoY.

There was a substantial improvement in the same store sales (SSG) growth, reaching 20% in Q2 compared to 4% in Q1, resulting in 12% SSG growth in H1. The stud ratio also significantly increased to 11.1% in Q2 from 9.9% in Q1, yielding 10.5% in H1.

In other business updates, the company launched 15,700 new gold jewellery designs and 7,400 diamond jewellery designs in H1FY25. The old gold exchange continued to facilitate the transition from non-organized to organized, with old gold contributing 32% and non-Senco contributing over 62%.

The customer base surpassed 80,000, providing a captive base that typically contributes 8-10% of the total topline. Digi’s Gold customer base also grew to 75,000. The company introduced the Marigold fixed and flexi gold plan to help customers mitigate gold price volatility and plan their wedding and festive purchases in advance.

The company stated, “Our pipeline of both own and franchise showrooms is robust, positioning us to meet our annual target. We’re also on track for 18-20% year-on-year revenue growth in FY25, driven by the upcoming festive season of Dhanteras, Diwali, and Durga Puja. Additionally, we are implementing strategic initiatives, introducing new collections, and aiming to increase the studded jewellery ratio to over 12%.”

Senco Gold was included in the MSCI India Domestic Small Cap index after its latest rebalancing, effective from August 30.

Furthermore, the company’s board approved a 1:2 stock split, the first since its listing in July 2023. The record date for the stock split is yet to be determined, but the company aims to complete the process within three months of securing approval from shareholders.

The company’s board has also approved raising up to Rs 500 crore through a Qualified Institutional Placement (QIP) or various permissible methods.

At 10:23 am, shares of Senco Gold were trading 2.83% higher at Rs 1,397.05 on the NSE.

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