Senco Gold’s stock price was locked at a 5% upper circuit on Tuesday, driven by robust buying activity. The shares were frozen at ₹249.30 per unit on the BSE, reflecting renewed investor confidence in the company.
Promoter Stake Boost Amid Rising Gold Prices
The surge in Senco Gold’s stock follows an increase in promoter shareholding at a time when gold prices are reaching record highs. Gold prices have been on an upward trajectory due to global economic uncertainty, geopolitical tensions, and inflationary pressures, making gold and related stocks attractive to investors.
As of 1:40 PM, Senco Gold share price remained locked at its upper circuit limit of ₹249.30 per share on the BSE, with no sellers in sight. The strong buying momentum indicates positive sentiment toward the company, possibly due to expectations of improved financial performance driven by higher gold prices.
Invest in Indian Markets and Unlock Future Potential With 5paisa!Promoter Increases Stake
Jai Hanuman Shri Siddhivinayak Trust, the promoter entity of Senco Gold, has raised its stake by acquiring additional shares through open market transactions.
On March 17, Suvankar Sen, acting as Trustee of Jai Hanuman Shri Siddhivinayak Trust, purchased 1,61,000 shares of Senco Gold, equivalent to a 0.01% stake in the Kolkata-based jewelry company. This transaction was carried out through the open market.
A regulatory filing on March 18 stated, “I, Suvankar Sen, Trustee of Jai Hanuman Shri Siddhivinayak Trust, on behalf of the Trust, submit this disclosure under Regulation 29(2) of SEBI (Substantial Acquisition of Shares & Takeover) Regulations, 2011. This pertains to the acquisition of 1,61,000 equity shares, representing 0.01% of the company’s paid-up capital, through the open market.”
Before this acquisition, the trust held 6,73,75,656 equity shares, accounting for a 41.16% stake in Senco Gold. With the latest purchase, its holding has increased to 6,75,36,656 shares, raising its stake to 41.26%.
As of December 31, 2024, the total promoter shareholding in Senco Gold stood at 64.11%, while the public held 35.89% of the company.
Senco Gold Stock Performance and Market Outlook
Despite the recent surge, Senco Gold’s stock has faced significant volatility. Over the past month, the stock has dropped by 27%, while its year-to-date (YTD) performance reflects a steep 55% decline. Over six months, the stock has plummeted 60%, and in the past year, it has fallen by 34%.
The sharp decline in Senco Gold’s stock price over the past year can be attributed to multiple factors, including macroeconomic concerns, fluctuating consumer demand for gold jewelry, and sectoral pressures. However, the company remains a key player in the Indian jewelry market, with a strong brand presence and a growing retail network.
Industry experts believe that the recent promoter stake increase could be a positive signal, reflecting confidence in the company’s long-term growth. Typically, when promoters increase their stake, it indicates their belief in the company’s future prospects, potentially reassuring investors.
Additionally, the ongoing rally in gold prices may benefit Senco Gold’s revenue and profitability, given its extensive portfolio of gold jewelry products. The global gold market has been witnessing significant demand due to inflation hedging and safe-haven investments. If gold prices continue their upward trend, jewelry companies like Senco Gold could experience improved margins.
Investors will closely monitor the company’s upcoming financial results and any strategic initiatives it undertakes to capitalize on favorable market conditions. Analysts suggest that while short-term volatility persists, Senco Gold’s long-term prospects remain promising, especially if gold prices sustain their bullish momentum.
