On Friday, February 14, shares associated with gold declined drastically amid rising gold prices globally. Kalyan Jewelers, Muthoot Finance And Senco Gold Slipped up to 20 percent. Senco Gold shares fell by 20% on BSE and a lower circuit at Rs 357.60. One of the major reasons for the fall in Senco Gold shares was the financial results of the October-December 2024 quarter. The company’s net profit fell 69.4% to ₹ 33.4 crore on a year-on-year basis. It was ₹ 109.3 crore a year ago.
Ebitda fell 56% to ₹ 79.96 crore on a year-on-year basis, which was ₹ 181.1 crore in the December 2023 quarter. However, revenue from the operations increased by 27.3% to ₹ 2,102.5 crore on an annual basis, which was ₹ 1,652.2 crore a year ago.
How much Kalyan Jewelers and Muthoot Finance kill
The stock of Kalyan Jewellers closed over 7 percent to close at Rs 487.70. The company’s market cap is Rs 50300 crore. Muthoot Finance closed nearly 3 percent at Rs 2254.55. The market cap remained Rs 90500 crore. Similarly, the PC jeweler has fallen by more than 7 percent to Rs 2254.55, Motis Jewelers fell by 5 percent at Rs 20.74 and RBZ Jewellers closed at Rs 180.70 with nearly 8 percent.
The price of spot gold has reached a record height, yet the shares associated with gold are under pressure. The rise in gold prices has recently been associated with the step of imposing 25% tariff on steel and aluminum imports by US President Donald Trump. Investors are looking for safe-assets during the uncertainty of the global market, so gold prices have increased.
Heavy selling after Q3 results in Concord Biotech, share 20% broken; Touched lower circuit
The price of stock not always increasing when gold is expensive
Gold prices and stocks related to gold are not always in the same direction. On the one hand, high gold prices can increase revenue for jewelery and gold finance companies, while on the other hand the purchase cost can also increase, which can affect margin. In addition, if gold prices rise very fast, this consumer can reduce demand. This may affect sales value.