
From a 90% crash to a 1,000% rally: Can PC Jeweller regain its shine?
On July 7, 2025, PCJ's promoters infused Rs 500 crore into the company by subscribing to fully convertible warrants at Rs 18 each, a premium to the June 30 market price of Rs 12.3. This sent the stock soaring 52% in the first week of July to Rs 18.7. The company will use these funds to repay bank debt, with an aim to become debt-free by the end of FY26.
But to understand the significance of this move, it's important to understand where PCJ went wrong and how far it still has to go.
PC Jeweller's Stock Price Momentum (2014-2020)
Between FY14 and FY18, PC Jeweller grew its revenue by 80% to Rs 9,610 crore, placing it alongside Kalyan Jewellers and Joyalukkas in terms of market share.
But everything began to go south after SEBI pulled up PCJ for insider trading in January 2018. The stock tanked 90% within 9 months. The promoters moved the Securities Appellate Tribunal (SAT) and then to the Supreme Court. Though the apex court overturned SEBI and SAT's ruling in April 2022, four years of legal proceedings had done much damage.
Legal troubles and weakened consumer trust pulled revenue down by 83%. The company reported a net loss of Rs 391 crore in FY22, with sales falling to Rs 1,605 crore, which were not enough to cover its fixed costs.
PC Jeweller's Sales and Profits FY14-FY22
5,325
6,361
7,301
8,464
9,610
8,672
5,206
2,825
1,605
378
1
-391
Source: Screener.in
The gems and jewellery sector operates like any other retail business, with pan-India stores. What sets them apart is the cost of gold, the primary raw material. India imports gold to meet jewellery demand, and the government imposes a customs duty on these imports. Jewellers also have a high working capital demand as gold is slow-moving, often taking 6–12 months to convert into sales.
When sales declined because of the pandemic and the legal issues, PCJ was left with unsold inventory worth Rs 5,667 crore.
PC Jeweller's Inventory from FY18-FY22
Inventory (Rs Crores)
5,258
5,012
5,944
5,667
Inventory Days
1,465
Source: Screener.in
Moreover, the pandemic resulted in export clients defaulting on trade receivables. Thus, PCJ had to borrow Rs 727 crore from banks to meet its trade payables, which increased its borrowings to Rs 3,283 crore in FY22 (from Rs 2,294 crore in FY21), and reduced its cash reserve to Rs 60 crore.
From a net-cash company in FY18, PCJ became a net debt company by FY22. Within six months, it defaulted on loans worth Rs 3,466 crore in Q2FY23 ended September 2022. At this point, short-term borrowings were more than its reserves, and cash was running dry.
PC Jeweller's Cash and Debt from FY18-FY22
Mar-20
Mar-21
Mar-22
Short-Term Borrowings
1,025
2,091
2,282
2,294
3,283
Cash Equivalents
1,556
322
178
60
Source: Screener.in
The creditors lost trust in the jeweller. The State Bank of India (SBI) (Rs 1,060 crore outstanding loan), its largest lender, initiated insolvency proceedings on PCJ in January 2023. Its two prime properties in New Delhi came under the SBI's control, and its inventory at a few locations came under the court's custody, disrupting operations. In FY24, the company's sales fell 75.5% to Rs 604 crore.
The 334% rally in 4 months (27 June-24 October 2022) after the Supreme Court ruling reversed after the bank loan default.
PC Jeweller's Stock Price Momentum (2022-2025)
In December 2023, despite reporting its lowest quarterly revenue of Rs 40 crore (down 95% year-over-year) and a net loss of Rs 198 crore, PCJ's stock surged 100%.
Behind the rally was PCJ's negotiations with banks to avoid bankruptcy. The jeweller even offered to reduce payment terms to 3 years from 5 years to get the lenders to settle, instilling confidence in investors.
In July 2024, the company reached a One-Time Settlement (OTS) with 12 out of 14 banks. As part of the settlement, PCJ agreed to repay the loan in cash and equity, with structured cash payments over 2 years from the date of settlement (September 30, 2024). However, it expects to repay the debt by March 2026.
So far, PCJ has paid Rs 487 crore in cash and converted debt worth Rs 1,510 crore to equity, giving banks a 9.07% stake in the company. As of March 30, 2025, it halved its debt to Rs 2,064 crore.
The company will announce more such capital infusion as part of its plan to raise up to Rs 2,705 crore by issuing warrants on a preferential basis to promoters and investors. So far, the company has raised Rs 1,664 crore from share warrants.
PCJ is strengthening its balance sheet by reducing debt. Simultaneously, it is reviving its business by using Rs 529 crore from the capital raised towards working capital. This helped the jeweller revive its FY25 sales. It reported a profit of Rs 578 crore by reducing its interest expense by Rs 454 crore to Rs 51 crore.
PC Jeweller's Cash and Debt from FY23-FY25
2,245
2,064
Cash Equivalents
Inventory
5,633
6,649
Source: Screener.in
PCJ is no longer in crisis mode. Over the last five years, it has avoided bankruptcy and returned to profits, which drove its share price up 1,068%. But challenges remain.
PCJ's short-term borrowings have a Crisil rating of D (Default) 'issuer not cooperating' as on March 28. It received a show-cause notice from SEBI in February 2024 for alleged violation of the Listing Obligations and Disclosure Requirements (LODR) Regulations. Though it has settled the issue with SEBI by paying Rs 7.23 crore, it highlights that more work needs to be done around its corporate disclosures.
PCJ also has to work toward reviving its business operations, where it is competing with giants like Tanishq and Kalyan Jewellers. Kalyan Jewellers has been expanding showroom count aggressively by moving from company-owned company-operated (COCO) to franchise-owned company-operated (FOCO) model. In the FOCO model, the franchise owners put their money into owning/leasing the store and store inventory. This model reduces the capital intensity of opening a new store, but also reduces the margin.
PCJ, on the other hand, still operates on the COCO model, with only 4 franchises and 48 showrooms. The company's FY25 revenue is down 9% from FY23, when the business was not disrupted by bank default.
PCJ is confident about FY26 growth. Its stock is trading at a price-to-earnings (P/E) ratio of 19x, way below Kalyan Jewellers' ratio of 85x and the industry median of 32x. Even the Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortisation (EV/EBITDA) ratio of 25.3x looks cheaper than Kalyan Jewellers' 39x.
But PCJ's low valuation doesn't make it a value stock. It still carries high risk as the company still lacks consumer trust. It now has a shorter deadline to repay the Rs 2,064 crore debt. Until consumer and investor confidenc eis fully restored, risk remains high.
Analysts have not yet initiated coverage on PCJ stock. That means investors must rely on their analysis of the company's performance. Being a distressed small-cap stock, its trading volumes are mostly concentrated around shareholder events, which increases volatility. However, it holds potential to grow substantially if the positive news keeps flowing in.
Note: We have relied on data from http://www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
Puja Tayal is a financial writer with over 17 years of experience in the field of fundamental research.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Economic Times
21 minutes ago
- Economic Times
CarTrade Tech shares rally 9% to a record high after Q1 profit more than doubles
Shares of CarTrade Tech climbed as much as 9% on Monday, July 28, to a 52-week high of Rs 2,068.85 on the BSE after the company reported a sharp rise in quarterly profit and revenue, driven by growth across all key business segments and higher other income. ADVERTISEMENT CarTrade Tech posted a consolidated net profit of Rs 47.06 crore for the quarter ended June 30, 2025, more than double the Rs 22.90 crore reported in the same quarter last year. Revenue from operations rose to Rs 173.04 crore from Rs 141.52 crore a year ago, according to the company's unaudited financial results approved by its board on Monday. Segment-wise growth The company's revenue is divided into three key verticals, namely Consumer, Remarketing, and Classifieds. In the April–June quarter, Consumer segment revenue stood at Rs 66.38 crore, Remarketing at Rs 59.40 crore, and Classifieds at Rs 48.14 crore. The total segment revenue was Rs 173.92 crore, with intersegment eliminations of Rs 0.88 income contribute meaningfully to the topline during the quarter, rising to Rs 25.46 crore from Rs 15.19 crore a year earlier. This included Rs 6.99 crore from interest on bank deposits, Rs 1.25 crore from gains on fair valuation or sale of financial assets, and Rs 0.40 crore in other interest a standalone basis, CarTrade Tech reported a profit before tax of Rs 29.41 crore and a profit of Rs 22.99 crore for the June quarter. ADVERTISEMENT The stock has gained 36.5% in 2025 so far and is up 139% over the past 12 months. In the last six months alone, it has advanced 51.2%, while the one-month gain stands at 29%. ADVERTISEMENT Technically, the stock is trading above all eight key simple moving averages, from the 5-day to the 200-day, reflecting sustained upward momentum. The Relative Strength Index (RSI) is at 58.1, indicating the stock is neither overbought or oversold. Meanwhile, the MACD is at 72.9 and remains above both the center and signal lines, reinforcing the ongoing bullish trend. Also read | IEX shares slide 9% as market coupling fears continue to drag, brokerages cut targets (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)


Economic Times
21 minutes ago
- Economic Times
Gurugram startup intern reveals he left home, spent Rs 30,000 for dream job, only to be fired in 23 days; Internet furious
'I regret believing the founder': Intern spends Rs 30,000 to join Gurugram startup, gets sacked in just 23 days (representative image) Synopsis A young intern's dream internship in Gurugram turned into a nightmare after being abruptly dismissed within a month. The intern invested savings and relocated, lured by promises of mentorship and a full-time position. This incident has sparked a debate about whether Indian startups exploit young interns with long hours and underpaid work, only to replace them without justification. Imagine packing your bags, leaving home, spending Rs 30,000 from your savings, and heading to Gurugram for a dream internship, only to be shown the door in just 23 days. That's exactly what happened to a young intern who recently shared their story on Reddit, and now, it's gone viral. ADVERTISEMENT The Reddit user, posting under the name @Regrets_only_, revealed they had moved to Gurugram to work at a startup after being promised mentorship and a full-time job within three months. The expected salary? At least Rs 40,000 per month. But after working 10–12 hours a day, including weekends, things took a turn. The intern was suddenly told their role was no longer needed because a client had backed out. No notice. No warning. Just gone. "I was shocked... I regret believing the founder," the intern wrote, calling the entire experience a disaster. Now jobless and stuck in one of India's most competitive job markets, they're trying to figure out their next step, and they're not story hit a nerve with many online. Several people on Reddit shared similar experiences of being let down by person commented, "Same happened to me. Keep applying on LinkedIn, even if most jobs are fake, you'll get a few calls if you're consistent." ADVERTISEMENT Another advised, 'Don't lose hope. At that time, it was the best decision you could've made. Maybe ask the founder if he knows someone who's hiring.'This story has reignited an old debate, are Indian startups taking young interns for granted? Many of them work long hours, often unpaid or underpaid, only to be replaced without reason. The shiny promise of 'experience' sometimes hides a darker truth. ADVERTISEMENT Disclaimer: This article is based on a user-generated post on Reddit. has not independently verified the claims made in the post and does not vouch for their accuracy. The views expressed are those of the individual and do not necessarily reflect the views of Reader discretion is advised. (You can now subscribe to our Economic Times WhatsApp channel) Disclaimer Statement: This content is authored by a 3rd party. The views expressed here are that of the respective authors/ entities and do not represent the views of Economic Times (ET). ET does not guarantee, vouch for or endorse any of its contents nor is responsible for them in any manner whatsoever. Please take all steps necessary to ascertain that any information and content provided is correct, updated, and verified. ET hereby disclaims any and all warranties, express or implied, relating to the report and any content therein. NEXT STORY


Time of India
21 minutes ago
- Time of India
Shanti Gold IPO subscribed 2.25x on Day 2; should you apply? Check GMP, review, and more
Synopsis The Shanti Gold IPO is priced in the range of Rs 189 to Rs 199 per share, with a minimum application size of 75 shares — translating to Rs 14,925 at the top end. Ahead of the issue opening, Shanti Gold International raised Rs 108 crore via anchor investors.