On Wednesday, Senco Gold said its board has approved an investment of Rs 68 crore to acquire a 68% equity stake in August Jewellery Private Limited (AJPL), the parent company of online jewellery brand Melorra. Following the completion of the transaction, AJPL will become a subsidiary of Senco Gold. The acquisition is expected to be completed by April 30, 2026.
The investment is part of Senco Gold’s strategy to expand its digital footprint and cater to the evolving preferences of young, tech-savvy consumers. Melorra’s strong focus on online sales, fast-fashion jewellery, and frequent design launches is expected to complement Senco Gold’s traditional strengths, leading to improved operational efficiencies and an enhanced customer experience.
Melorra is known for its lightweight, contemporary jewellery and operates through 21 stores across India, along with a strong e-commerce platform. The brand leverages advanced technology to introduce new designs weekly, positioning itself well in the fast-growing digital jewellery segment.
In terms of financial performance, Melorra reported a turnover of Rs 33.24 crore for the financial year ended March 2025. This compares with a turnover of Rs 173.62 crore in FY24 and Rs 605.47 crore in FY23.
Established on January 16, 2015, Melorra has built a strong identity in the fast-fashion jewellery space. The acquisition is expected to help Senco Gold accelerate its omnichannel strategy while tapping into Melorra’s design capabilities and digital expertise.
On Wednesday, Senco Gold shares settled 1.07% higher at Rs 312.35 on NSE.
On the valuation front, Senco Gold is currently trading at a price-to-earnings (P/E) ratio of 20.29, which reflects how much investors are willing to pay for each rupee of earnings. The stock’s price-to-sales (P/S) ratio stands at 0.7, indicating that it is valued at less than one time its annual revenue, while the price-to-book (P/B) ratio of 2.57 suggests the stock is trading at a little over two-and-a-half times its book value.
From a technical perspective, trendline data shows that the 14-day Relative Strength Index (RSI) is at 42.5. An RSI reading below 30 is typically considered oversold, while a level above 70 indicates overbought conditions. The current RSI suggests the stock is in a neutral-to-weak momentum zone, with no immediate signs of extreme buying or selling pressure.
Looking at moving averages, the technical setup remains bearish, as Senco Gold is trading below all 8 out of 8 Simple Moving Averages (SMAs). This indicates sustained downward pressure on the stock and highlights a weak short- to medium-term trend.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)