Senco Gold scrips at ₹1,379.25 were up 3.49 per cent on Tuesday on the BSE following the sale of shares by Oman India Joint Investment Fund II and purchase of shares by ICICI Prudential Life Insurance in a bulk deal.
Bulk deals data from BSE shows that Oman India Joint Investment Fund II sold 5,89,917 shares in the company at ₹1,280 on Monday, while ICICI Pru Life bought 4,90,705 shares at ₹1280 per share.
As of Q1FY25, Oman India Joint Investment Fund held 2.03 per cent in the city-based retail jeweller with a total holding of 15,80,693 shares. With gold hitting fresh highs and expansion plans by the retail jeweller, analysts remain bullish on the company.
“Senco has been investing in marketing, merchandising, sales, and network expansion to strengthen its presence in non-eastern regions, majorly Delhi-NCR and Uttar Pradesh.”
“We expect Senco to open 62 stores over FY24-27E on a base of 159 stores, equally divided between COCO (company owned and operated) and FOFO (franchisee owned and operated) formats. While FOFO expansion is asset-light, the COCO expansion will entail a capex/working capital investment of ₹8-10 billion,” Emkay Global said in a report.
Senco Gold has also informed the bourses that it has incorporated a wholly owned subsidiary, Sennes Fashion.
Gold surges
Gold prices have scaled a fresh high of $2,660 in early trade on Tuesday amid strong anticipation for further rate cuts by the US Fed in the upcoming meetings while geopolitical tensions between Israel and Lebanon are also pushing gold prices upwards.
“The festive season has already begun. Demand is expected to gain momentum at the onset of Navratri till Dhanteras...The prices in the domestic market is expected to cross ₹78,000,” said Colin Shah, MD, Kama Jewelry.