Shares of PC Jeweller Ltd surged today, locking in a 5% gain to reach Rs 103.59 per share, up from its previous close of Rs 98.66. The stock also hit a new 52-week high at Rs 103.59, far above its 52-week low of Rs 25.45. Despite no significant announcements from the company, the rally in its share price appears to be driven by market forces.
PC Jeweller Ltd, a prominent Indian company, is known for designing, manufacturing, and trading gold, platinum, diamond, and silver jewellery. Operating under multiple brands, including Azva, Swarn Dharohar, and LoveGold, the company even produced commemorative medallions for the Cricket World Cup.
The company has shown a remarkable turnaround in the first quarter of FY25. Domestic sales saw a significant increase, jumping from Rs 67 crore in Q1FY24 to Rs 401 crore in Q1FY25. This compares to Rs 48 crore in Q4FY24 and Rs 189 crore for the entire FY 2023-24. Profitability has also seen a sharp improvement, with EBITDA rising to Rs 89 crore in Q1FY25 from a loss of Rs 42 crore in the same period last year. Operating profit reached Rs 49 crore in Q1FY25. Additionally, PC Jeweller successfully settled an outstanding income tax liability of Rs 81.26 crore, using income tax refunds to generate an interest income of Rs 34.53 crore.
The company’s financial position has further strengthened with positive developments regarding its debt. An OTS (One-Time Settlement) offer submitted to a consortium of 14 banks has been accepted by 12, with the remaining two under active consideration. The withdrawal of an insolvency petition filed by the State Bank of India marks a significant victory for the company. To support its growth and debt repayment, PC Jeweller has secured shareholder approval to raise Rs 2,705.14 crore through a preferential issue of warrants. These achievements, coupled with the company’s strong operational foundation, including a network of 57 showrooms across India and robust manufacturing capabilities, have helped it regain customer trust. With increasing sales, improved operational efficiency, and a renewed focus on marketing, PC Jeweller is well-positioned for sustained growth in the coming quarters.
The company currently boasts a market capitalization of Rs 4,821.12 crore. As of June 2024, the Life Insurance Corporation of India (LIC) holds a 1.45% stake in the company. Foreign Institutional Investors (FIIs) have also shown increased interest, acquiring 76,18,330 shares and boosting their stake to 2.57%, up from 0.93% in March 2024. The stock has delivered multibagger returns, climbing 307% from its 52-week low of Rs 25.45 per share. Investors are advised to keep an eye on this Small-Cap stock as it continues to perform strongly.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.