Senco Gold shares resume climb, stock jumps 16% in 5 sessions; is this a sign of potential reversal?

Shares of Senco Gold Ltd returned to positive territory in Tuesday's trade after a single-day pause. At last check, the stock was trading 5.81 per cent higher at Rs 335.35, taking its cumulative gains to 16.58 per cent over the past five trading sessions. Despite the recent rise, the scrip remains down 17.37 per cent from its 52-week high of Rs 405.85, touched on April 24 last year.

The recent upmove followed the company's business update for the fourth quarter (Q4) and the full financial year 2025-26 (FY26). In terms of revenue growth, Senco said it "achieved a wedding season-led growth of ~46 per cent YoY in Q4 FY26, leading to a ~35 per cent YoY growth for FY26 as compared to 21 per cent YoY growth in FY25. The Q4 topline growth includes SSSG of ~34 per cent."

Despite volatility in gold prices, the company stated that "customers have continued to purchase jewellery, and we have tried to plan our inventory based on changing consumer demand and maintaining our gross margin and profitability, managing the risk effectively."

Senco also continued to expand its retail footprint, launching seven new showrooms in Q4 FY26. The company has now crossed the milestone of 201 total showrooms, with a net closure of two stores. "The current network now comprises 102 COCO and 85 FRN (FOFO-76 & FOCO-9) stores, 12 Sennes stores and 2 in Dubai," it added.

"We have accelerated our focus on Lightweight Jewellery and Everyday Wear. A key highlight of this quarter has been the customer response to our 9k collection, christened Cloud 9, which will further promote jewellery demand amid rising prices. This allow us to maintain affordability and volume growth even in a high-price environment," Senco further stated.

From a technical perspective, analysts indicated improving momentum in the stock.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, stated, "Senco Gold has witnessed a spurt in price and volumes from a critical support zone, suggesting a potential reversal. The zone of Rs 300-280 is likely to cushion any short-term blips in the counter, while any sustainable move beyond the 200 DSMA, placed around Rs 335, is likely to reinstate buying momentum in the counter in the near period."

According to AR Ramachandran, a Sebi-registered research analyst at Tips2trades, "The stock is bullish on daily charts with strong support at Rs 300. It has the potential to hit an upside target of Rs 344 in the near term."