Senco Gold vs Kalyan Jewellers: The Battle for Long-Term Gains

Jewellery stocks have been shining on Dalal Street, showing impressive gains and brightening investors’ portfolios. Driven by rising demand and positive market sentiment, these stocks have performed well, with major companies in the sector experiencing significant growth. The increase in gold prices and demand during the festive season has sparked a buying frenzy, making these stocks even more attractive.

As this rally continues, investors are now asking which stock has better long-term potential—Senco Gold or Kalyan Jewellers.

Stock Price Trend

In 2024, Kalyan Jewellers has outperformed Senco Gold, rising 257.74% in the last 1 year, while Senco has gained nearly 144.85%. Both companies have posted positive returns in six out of the nine months this year. Senco saw a 15.89% increase in the last 1 month. However, it fell 15.4% in July after a strong 29.7% gain in June. The stock also dropped 5.2% in May after a 21% surge in April, with earlier changes including a 7% decline in March, a 5.4% rise in February, and a 13% gain in January.

Kalyan Jewellers, on the other hand, jumped 20.93% in the last 1 month, marking its fourth consecutive month of growth. It rose 6.2% in August, 15.6% in July, and 29% in June. Before that, it fell 6.2% in May and 3.2% in April. Kalyan also posted gains of 7.8% in February and 13.3% in March, though it lost just over 1% in January. Over the past year, both jewellery stocks have delivered impressive returns, with Kalyan leading at over 257.74%, compared to Senco’s more than 144.85%.

Supported by strong market sentiment, Senco Gold hit an all-time high of ₹1,343.65 on September 19. It is currently trading at ₹1,328.75, touching the day’s high at ₹1,339.70, as of 12:36 PM on the NSE.

Similarly, Kalyan Jewellers reached a record high of ₹749 on September 13, 2024. It is now trading at ₹764.505, touching the day’s high at ₹786.25, as of 12:40 PM on the NSE.

Senco vs Kalyan: A Look at Q1 FY25 Earnings

Senco Gold Ltd reported a net profit of ₹51.27 crore for the first quarter of FY2024 (April-June), marking an impressive 85.4% increase thanks to higher revenue. The Kolkata-based jewellery retailer’s consolidated revenue grew by 7.5% year-on-year to ₹1,403.89 crore for the quarter ending June 30. Senco’s EBITDA jumped by 61.8% to ₹108.74 crore, with retail sales rising by 9.6% year-on-year and same-store sales up by 4%.

In contrast, Kalyan Jewellers India Ltd saw a 23.6% year-on-year increase in net profit, reaching ₹177.8 crore for the same quarter. The company’s revenue from operations rose by 26.5% to ₹5,535.5 crore, compared to ₹4,375.7 crore in the previous year. Kalyan’s EBITDA increased by 16.5% to ₹376.1 crore, but its EBITDA margin fell slightly from 7.4% to 6.8%.

Which Stock to Choose: Senco Gold or Kalyan Jewellers for the Long Term?

As jewellery stocks continue to do well in the market, Senco Gold and Kalyan Jewellers have become strong options for investors looking for long-term gains. Both have shown impressive returns recently and have attracted significant attention. While Kalyan Jewellers has outperformed in quality and market sentiment, Senco Gold offers better value.

Jewellery stocks, including Senco Gold and Kalyan Jewellers, have been on an upward trend for the past 3 months, yielding substantial returns in that time.

Both Senco Gold and Kalyan Jewellers present attractive investment options, each with its own strengths. Kalyan Jewellers is promising due to its asset-light expansion strategy and focus on trends appealing to younger customers. Meanwhile, Senco Gold is set for growth in the organised retail jewellery market, especially in the eastern region. Investors should consider Kalyan’s quality edge alongside Senco’s better valuation and potential for strong earnings growth and read the financials properly before deciding which stock to choose.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.