On May 30, the Indian stock market witnessed contrasting moves among key mid-cap stocks. Senco Gold and Sobha recorded sharp gains of around 4% each following impressive Q4 FY25 results, while Coffee Day Enterprises saw a 4% dip, extending its losing streak. Let’s dive deeper into the performance and financials that influenced investor sentiment.

Senco Gold Shares Extend Rally After Stellar Q4 Performance

Senco Gold shares continued their upward trajectory for the sixth consecutive session, opening at ₹397 apiece. This momentum was driven by the company's strong Q4 FY25 earnings report released on May 29.

Q4 FY25 Financial Highlights:

• Net profit surged by 94% YoY to ₹62 crore, up from ₹32 crore in Q4 FY24.

• Revenue from operations rose over 21% YoY to ₹1,378 crore, compared to ₹1,137 crore in the same quarter last year.

• EBITDA increased nearly 45% YoY to ₹127 crore, with EBITDA margin improving to 7.7%.

These strong numbers signal improved operational efficiency and stronger market demand.

Dividend Declaration:

Alongside its results, Senco Gold announced a dividend of ₹1 per equity share for FY25, subject to shareholder approval. This has further enhanced investor confidence, as the company continues rewarding its shareholders.

Stock Performance:

• The stock has been on a 6-day winning streak, reflecting market optimism post results.

• Positive sentiment has been supported by the company’s consistent revenue growth and expansion of margins.

Sobha Ltd Shares Hit 4-Month High After Massive Profit Growth

Real estate major Sobha Ltd also thrilled the markets with its robust Q4 FY25 earnings, driving the stock to a four-month high at ₹1,447 apiece.

Q4 FY25 Financial Highlights:

• Net profit jumped a staggering 481% YoY to ₹40.9 crore, compared to ₹7 crore in Q4 FY24.

• Revenue from operations increased to ₹1,240.6 crore, demonstrating healthy business momentum.

• The company also declared a dividend of ₹3 per equity share for FY25.

Balance Sheet Strength:

A major highlight was Sobha’s net debt reduction:

• Net debt stood at -₹630 crore, resulting in a Net Debt-to-Equity ratio of -0.14.

• This reflects a net cash position, indicating strong financial discipline and improved cash flow.

Market Reaction:

Investors responded positively to the remarkable improvement in profitability and balance sheet health. The share price movement signals renewed interest in real estate stocks with solid fundamentals and execution capabilities.

Coffee Day Enterprises Faces Market Heat as Losses Deepen

While Senco Gold and Sobha celebrated strong earnings, Coffee Day Enterprises, parent of Café Coffee Day, slid over 4% in early trade, opening at ₹32 apiece. This marked a continuation of its decline, following the release of its Q4 FY25 results.

Q4 FY25 Financial Overview:

• The company reported a net loss of ₹33 crore, which is a significant YoY improvement from the ₹303 crore loss in Q4 FY24.

• However, sequentially, the loss widened from ₹10 crore in Q3 FY25, disappointing investors.

• Revenue from operations improved YoY to ₹268 crore, up from the previous year, but fell compared to ₹280 crore in Q3 FY25.

Key Concerns:

• Despite the YoY improvement, the sequential drop in both revenue and profit indicates inconsistent performance.

• The market reacted negatively to this trend, with traders likely pricing in uncertainty around the turnaround strategy.

Investor Takeaways

• Senco Gold's performance reaffirms its position as a fast-growing jewellery retailer, with strong demand and disciplined cost management.

• Sobha's turnaround in profitability and debt position places it on a strong growth trajectory, making it a potential favourite among real estate investors.

• Coffee Day Enterprises, despite narrowing losses YoY, still struggles with consistent profitability, and may need stronger operational strategies to regain market confidence.

Conclusion

May 30 reflected a tale of two ends in the Indian stock market:

• Senco Gold and Sobha won investor favour with solid financials, smart capital allocation, and shareholder rewards like dividends.

• Coffee Day Enterprises, on the other hand, continued facing pressure due to operational volatility and widening quarterly losses.

As Q4 FY25 earnings season unfolds, the Indian market is favouring companies with strong earnings visibility, balance sheet improvement, and consistent performance. These contrasting movements serve as a clear signal for investors to watch financial fundamentals closely while making portfolio decisions.

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