Senco Gold’s stock price surged by 10% to reach a 52-week high during Monday’s trading session, following the announcement on Friday by the company’s board on the division of equity shares. The board also approved the Qualified Institutional Placement (QIP) and other authorised means of funding up to ₹500 crore.
Senco plans to divide one equity share, valued at ₹10, into two shares, each valued at ₹5. Senco’s initial stock split since going public in July 2023 will occur with this transaction.
The record date for the sub-division above/split of equity shares will be decided upon obtaining shareholder approval and will be notified in due course, the business said in an exchange filing.
The opening price of Senco Gold shares on the BSE was ₹1,432.55 per share today. The stock experienced an intraday high of ₹1,544, and a low of ₹1432.20 per share.
Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One noted that Senco Gold’s share price is in an uptrend consistently moving in a higher top and higher bottom; today it witnessed a gap up and is up around 5%. With 1350 acting as support and a stop loss on the upside, keep your positive bias going. The next resistance is 1600.
Ruchit Jain, Lead Research Analyst at 5paisa, thinks that while the stock is on a good trend overall, there may be some pullback shortly because the short-term momentum readings have entered the overbought zone. The stock’s immediate support is situated at ₹1,250.
Trendline data shows that the share price of Senco Gold increased by 129.9% over the past year, outperforming the performance of its sector by 82.11%.
In their most recent research, broking Emkay Global Financial Services confirmed their BUY recommendation and set a new target price of ₹1,600 per share for Sep-25E. The primary drawback is the gross margin’s unpredictability.
“In our view, Senco is now comfortably placed to meet or exceed its 18-20% annual growth guidance, despite only 11% growth in Q1. On a trailing basis (FY24 PAT), Senco is trading at a 45-55% discount to Titan/Kalyan and at ~25% discount to P N Gadgil. Given the strong execution in FY24/H1FY25E and relatively longer listing history, we believe the steep discount is unwarranted,” said Emkay Global.
