Analyzing Q1 2025 Prospects: PC Jeweller, Senco Gold, Kalyan Jewellers

As the jewellery sector gears up for the Q1 FY26 financial results, investors are keenly observing three major players: PC Jeweller, Senco Gold, and Kalyan Jewellers. With a backdrop of festive buying during Akshaya Tritiya and the summer wedding season, these companies have reported significant demand in their recent business updates, despite fluctuations in gold prices.

Gaurav Goel, Founder and Director of Fynocrat Technologies, noted that while all three companies have demonstrated robust performance, Senco Gold emerges as a particularly appealing option for risk-averse investors due to its consistent growth and transparency. Senco Gold reported a remarkable 28% increase in total revenue, driven by a 24% rise in retail revenue and a 19% increase in same-store sales. Furthermore, the company expanded its footprint by opening nine new jewellery stores and strengthening its portfolio with sub-brands like Sennes and Everlite, highlighting a strong demand for diamond jewellery, which constituted 40% of its sales.

Kalyan Jewellers also marked a notable 31% growth in overall revenue, with its digital platform, Candere, surging by 67% year-over-year. The company opened 19 new showrooms this quarter and plans to launch an additional 170 stores across India and international markets. In contrast, PC Jeweller reported the highest revenue growth at approximately 80% compared to the previous year, attributing this surge to increased wedding and festive demand. Furthermore, they have successfully reduced outstanding debt and anticipate achieving a debt-free status by the end of FY26.

Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, provided insights into the technical performance of these stocks. PC Jeweller's stock has recently broken above the ₹12 level, reaching a new 52-week high of ₹19. Despite this bullish momentum, the stock is currently deemed overbought, with resistance expected between ₹20 and ₹22, necessitating a decisive breakout for further upward movement. Traders are advised to avoid new positions at current levels and consider buying near the support zone of ₹13–14.

For Senco Gold, a bullish engulfing pattern on the weekly chart suggests potential for continued upward momentum, with projected price targets ranging from ₹470 to ₹510. Investors are encouraged to maintain their positions with a stop-loss at ₹300.

Kalyan Jewellers has displayed a significant trendline breakout, particularly above the ₹570 mark, indicating strong bullish sentiment. Traders may adopt a buying strategy around the ₹550–570 support area, considering the overall positive structure of the stock.

The impressive performance of these companies in the jewellery sector reflects broader trends in consumer behavior, with increased spending during festive seasons significantly impacting sales. As the Q1 results approach, investors are advised to analyze these companies' growth trajectories, market performance, and strategic initiatives to make informed investment decisions.