Senco Gold share price jumps 10% on stock split, fundraising plans

Senco Gold share price soared 10% to touch a 52-week high on Monday's session after the company's board announced its decision to split its equity shares on Friday. The board also approved raising funds of up to ₹500 crore through a Qualified Institutional Placement (QIP) or other permissible methods.

Senco intends to split one equity share, which is currently valued at ₹10, into two equity shares valued at ₹5 each. This will be Senco's first stock split since it went public in July 2023.

The company stated in an exchange filing that the record date for the aforementioned sub-division/split of equity shares would be determined after receiving shareholder approval and will be announced in due course.

Senco Gold share price

Senco Gold share price today opened at ₹1,432.55 apiece on BSE, the stock touched an intraday high of 1,544 per share, and an intraday low of ₹1432.20 apiece.

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One stated that Senco Gold share price is in an uptrend continuously moving in a higher top and higher bottom; today it witnessed a gap up and is up around 5%. Maintain a positive bias with 1350 as support and stop loss on the upside; 1600 is the next resistance.

However, Ruchit Jain, Lead Research Analyst at 5paisa believes that the broader trend for the stock is positive, but the short term momentum readings have reached the overbought zone and hence, there could be some consolidation in the near term. The immediate support for the stock is placed around ₹1,250.

Based on trendlyne data, Senco Gold share price experienced a 129.9% increase, surpassing its sector's performance by 82.11% over the last year.

Brokerage Emkay Global Financial Services has reiterated its BUY rating and set a new target price of ₹1,600 per share for Sep-25E in its latest report. The main downside is the volatility in gross margin.

“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.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.