Senco Gold: Margin shocker in Q3 FY25; long-term growth prospects intact
While there may be a short-term impact on volumes due to the steep increase in gold prices, demand is expected to improve strongly.
Q3FY25 margins sharply miss estimates
- Quarterly performance largely backed by improved realisations
- Medium-term triggers China plus and protectionist measures for tyre industry
- Valuations not inexpensive; but improved medium-term outlook
Highlights
- Q3FY25 margins sharply miss estimates
- Expect margins to rebound in Q4FY25, FY26
- Increase in interest rates on negative GML
- Demand momentum remains strong
- Valuations attractive, after steep correction
Senco Gold Ltd’s (SGL; CMP: Rs 358; Market cap: Rs 5,851 cr; Rating: Overweight) Q3FY25 margins were sharply lower than market expectations.
SGL’s margin miss and a huge margin decline on a year-on-year (YoY) basis were mainly owing to the timing of the hedge loss, which is based on the hedging position and level
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This Research Report has been published by Moneycontrol Dot Com India Limited (hereinafter referred to as “MCD”) which is a registered Investment Advisor under the Securities and Exchange Board of India (Investment Advisers) ...Read More