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Augmont Enterprises rises on debut as gold focus cuts both ways
The stock hit an intraday high of ₹925.65 on Sept. 2, even as the government reiterated its appeal to avoid gold purchases.
Augmont Enterprises, a gold-focused company that debuted on the stock market on Monday, was up 5% on NSE in Wednesday trade, despite renewed calls from Prime Minister Narendra Modi on Sept. 1 for Indians to refrain from buying gold, LiveMint Markets reported.
Shares opened at ₹869.80 and earlier reached an intraday high of ₹925.65 on Sept. 2, compared with a prior close of ₹866.25 on Tuesday, underscoring the demand the market is still placing on gold-linked businesses.
The report notes India’s heavy reliance on imports due to domestic production remaining well below consumption, given gold demand across jewelry and investment uses. It also contrasts Augmont’s strength with other jewelry stocks, including Titan, Kalyan Jewellers, and Senco Gold, which were trading lower.
Analysts cited in the article attribute Augmont’s revenue to bullion trading volumes while pointing to tighter profitability, with PAT margin indicated as below 0.4% and limited room for margin expansion. They also flagged concentration and governance risks tied to a promoter-group entity and top customer exposure, and said investors should watch upcoming results for growth across bullion and consumer businesses, operating cash flow, and margin stability.
Latest closeGold $4,376.80 ▼1.2%