Senco Gold, a well-known jewellery brand in India, has recently seen its shares bounce back by 16% in just three days, giving investors some hope. However, the stock is still down 51% this year, leaving many wondering if this recovery will last. Let’s break down what’s happening and where the stock might be headed.

What’s Happening with Senco Gold Shares?

In the last three trading sessions, Senco Gold’s share price rose by 5% to reach Rs 274.80, hitting its upper price limit. This marks a 15.72% recovery in just three days. While this is good news, the stock has had a tough year overall, losing 51.22% of its value due to poor financial results in the December 2024 quarter.

The company’s profits took a big hit, dropping 69.4% to Rs 33.4 crore in the third quarter of FY25 compared to the same period last year. Its operating profit (EBITDA) also fell by 56% to Rs 79.96 crore, showing that the business is facing challenges.

Why Are Regulators Watching Senco Gold?

Both the BSE and NSE have placed Senco Gold under a special watchlist called the Additional Surveillance Measure (ASM). This is a warning to investors that the stock is highly volatile and could be risky.

On the brighter side, Jai Hanuman Shri Siddhivinayak Trust, a key promoter of the company, has been buying more shares. They purchased 1.61 lakh shares on March 18 and another 80,400 shares on March 19, increasing their stake to 41.31%. When promoters buy more shares, it’s often seen as a sign of confidence in the company’s future.

Key Points for Investors

• Short-term recovery: Senco Gold shares have gained 16% in three days, but the stock is still down 51% this year.
• Financial struggles: The company’s profits dropped by 69.4% in the last quarter, reflecting ongoing challenges.
• Promoter confidence: The increase in stake by a promoter group is a positive sign for long-term growth.
• Analyst advice: Investors should wait for the stock to cross Rs 275 before expecting further gains.

What Should Investors Do?

The recent bounce in Senco Gold’s shares is encouraging, but the stock’s volatility and weak financial performance mean investors should be careful. While the promoter’s increased stake and short-term gains are positive, the stock needs to break key resistance levels to confirm a stronger recovery. For now, keeping an eye on market trends and company updates is the best way to make informed decisions.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Please consult a financial advisor Mbc trading Platform  before making any investment decisions.