Target: ₹431

CMP: ₹359.30

Senco Gold posted strong growth across revenue/EBITDA/PAT of 21.1/44.8/94. per cent y-o-y respectively, led by healthy wedding sales.

Management has reiterated topline growth of 18-20 per cent in FY26 and grow PAT with focus on improving diamond sales. The company targets EBITDA margin of 6.8-7.2 per cent and a PAT margin of 3.5-3.7 per cent. In a high gold price environment, management will focus on lightweight jewellery while the wedding segment contribution will continue to remain around 35-40 per cent of the overall business.

It further expects 15-20 per cent volume growth in diamonds with shift in consumer preference towards lower-purity, lightweight and diamond studded jewellery. The company aims to add 18-20 stores in FY26 with high focus on adding more franchise stores (minimum 10 franchisees and 8-10 COCO stores) with strong focus on opening stores in East India and North India.

With increasing diamond sales, the company is confident of achieving 15 per cent stud ratio in next 3-4 years.

We have done minor changes in our FY26E/FY27E PAT estimates factoring in the latest guidance and outlook on the company. We value the company at 32x of its 1-yr rolling forward EPS and keep our target price unchanged at ₹431 for 12-18 months.

Published on June 11, 2025