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Analysts expect sustained demand for gold jewellery in the coming quarters due to the summer wedding season, as well as other occasions like Akshaya Tritiya, Baisakhi and Rath Yatra.
Shares of Senco Gold, which reported its fourth-quarter business update on Saturday, ended 12.1% higher on Monday. Other companies like Thangamayil Jewellery, Kalyan Jewellers India, Titan Company, Sky Gold And Diamonds and PC Jeweller ended 3-7% higher.
Senco said in its exchange filing that on a standalone basis, it achieved a wedding season-led growth of 46% year-on-year in the fourth quarter, while PC Jeweller saw standalone revenue growth of approximately 32% year-on-year, in this period.
“Reports of a reduction in base import prices for gold and silver lifted jewellery stocks on Monday, as lower import prices are expected to ease input costs and support margins. Positive business updates from Senco Gold and PC Jeweller further supported sentiment,” said Arijit Malakar, equity research analyst, Ashika Stock Broking.
“The overall market fall due to the West Asia conflict has led to consolidation in gold jewellery stocks. However, with global gold prices cooling, Indian Jewellers are now restocking at favourable levels,” said Netra Deshpande, research analyst, Mirae Asset ShareKhan.
She believes that sustained demand from the extended wedding season and upcoming festivals like Akshaya Tritiya will continue to support growth in the coming quarters as well.
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https://economictimes.indiatimes.com/markets/stocks/news/jewellery-stocks-rise-on-talk-of-cut-in-base-import-price/articleshow/130073292.cms
