Senco Gold shares rise 27% despite poor earnings

Senco Gold's share price has increased sharply, rising nearly 27% from its recent 52-week low. The jewellery stock reached ₹288.85 on Friday, following a strong trend over the past week. This gain comes despite the company's poor earnings and overall market volatility. The share price has gained around 19% over the last week after touching its upper circuit limit on Tuesday. However, analysts point out that Senco Gold's recent drop in demand for jewellery, linked to rising gold prices, caused some selling pressure. The company's Q3 FY25 results also showed a significant decline in profit. Senco Gold's net profit fell by 69.4%, down to ₹33.4 crore compared to the same quarter last year. Its earnings before interest, tax, depreciation, and amortization (EBITDA) also dropped sharply by 56%. Following these results, the stock is currently under additional surveillance measures from both BSE and NSE due to increased volatility. Experts suggest that despite the challenges, the stock may be showing signs of recovery. One analyst believes Senco Gold could move towards ₹380 if it can surpass ₹300 consistently. However, they advise caution, as the overall trend remains weak and could see more selling near resistance levels. Investors are encouraged to track future results and conduct thorough research before deciding on investments in Senco Gold shares. The current market environment is unpredictable, and personal circumstances may vary greatly.