Senco Gold share price zooms 27% from 52-week low. Should you buy amid soaring gold prices? | Stock Market News
Source: Live Mint
Senco Gold’s share price has been on an uptrend for the last four straight sessions. The jewellery stock has touched the upper circuit since Tuesday last week, delivering around a 19% weekly gain. Senco Gold share price ended at ₹288.85 apiece on Friday, nearly 27% higher from its recently made 52-week low of ₹227.40 apiece on the NSE.
According to stock market experts, despite reasonable fundamentals, Senco Gold shares witnessed selling pressure in the recent stock market crash. They said that the unexpected rise in gold prices has hit demand for jewellery, which could be the possible reason for the dip in Senco Gold’s share price. They added that Senco Gold reported weak Q3FY25 results, which is also why stock remains in the base-building mode in YTD. However, they said that Senco Gold’s share price is giving a dead cat bounce, and it may go up to ₹380 apiece once it breaks above ₹300 on a closing basis.
Senco Gold share price outlook
Speaking on recent Senco Gold share price movements, Gaurav Goel, Founder-Director at Fynocrat Technologies, said, “Senco Gold reported a steep decline in its consolidated net profit for Q3 FY25, tumbling 69.4% to ₹33.4 crore from ₹109.3 crore in the same quarter last year. The company’s EBITDA also saw a significant drop of 56%, falling to ₹79.96 crore compared to ₹181.1 crore in Q3 FY24. Following its disappointing Q3 results and broader market corrections, Senco Gold has sharply declined from its 52-week highs. While the company’s fundamentals remain reasonable, investors should closely monitor upcoming quarterly results before considering any fresh investment in the stock.”
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Amidst these weak earnings, both BSE and NSE have placed Senco Gold under the short-term Additional Surveillance Measure (ASM) framework, signalling heightened volatility in its stock price. Such classifications serve as a cautionary measure for investors.
Senco Gold share price target
Expecting a dead cat bounce in Senco Gold share price, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, “Initially, when gold rates were on an uptrend, jewellery stocks witnessed upside due to the expected benefit on their buffer stock. However, after a long bull trend in the precious billions, this trend reversed, and Senco Gold shares and some other jewellery stocks came under selling pressure. However, the fundamentals of these jewellery companies remained unchanged. So, a dead cat bounce was expected at the Senco Gold share price, and we are witnessing the same.”
“After a steep 70% drop over five months, Senco Gold share price is setting up for a dead cat bounce. The stock is currently testing the 20-day EMA at ₹300, and a breakout above this level could extend the recovery toward the 50-day EMA at ₹379. This zone also aligns with a bearish gap, making ₹375 to ₹380 a major resistance area. While a short-term bounce is likely, the broader trend remains weak, and selling pressure could resume near resistance,” Anshul Jain added.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.
