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Indian Express
15 hours ago
- Business
- Indian Express
From a 90% crash to a 1,000% rally: Can PC Jeweller regain its shine?
In the jewellery business, trust is everything. Ask PC Jeweller (PCJ), which saw its fortunes plummet in 2018 after losing investor confidence and has spent the last five years rebuilding itself. Legal battles, irrecoverable payables, and short-term debt pushed the company into a deep crisis. But today, PCJ is attempting a comeback, step by step, trying to restore the trust. 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: 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: 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: 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: 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 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.
News18
14-07-2025
- Business
- News18
PC Jeweller Shares Fall 4%, Mcap Dips Below Rs 11,000 Cr: Should You Hold Or Exit?
In its latest filing, the company confirmed compliance with Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. It submitted certificates certified by KFin Technologies Ltd., its Registrar and Transfer Agent, detailing dematerialisation and rematerialisation activities for the quarter ended June 30, 2025. Despite the recent decline, PC Jeweller's stock has rallied nearly 35% over the past month, reflecting renewed investor interest and strong trading sentiment. Analyst opinions remain divided. Ravi Singh, Senior Vice-President, Retail Research at Religare Broking, believes the stock appears technically weak and may fall further towards Rs 15. He identifies immediate resistance at ₹20 and suggests that investors consider exiting at current levels. On the other hand, Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, highlighted the stock's breakout to a 52-week high on strong volumes. He noted that a sustained move above Rs 20 could open the door to further upside. Krishan advises investors to trail profits with a strict stop loss, identifying Rs 17.50–16.50 as near-term support and Rs 14.30 as a stronger base. Technical Analysis: Bullish Signals Persist Despite Short-Term Price Correction On the technical side, PC Jeweller's 14-day Relative Strength Index (RSI) currently stands at 68.7. Typically, an RSI below 30 indicates an oversold condition, while a reading above 70 suggests the stock may be overbought.
Time of India
14-07-2025
- Business
- Time of India
PC Jeweller shares drop nearly 4%; market cap slips below Rs 11,000 crore
Synopsis Shares of PC Jeweller experienced a dip of 3.5%, bringing the price to Rs 16.76. Market capitalisation decreased to approximately Rs 10,968 crore. Despite this, the stock has seen a 35% rally in the past month. Technical analysis shows the stock is trading above most key Simple Moving Averages.
Mint
13-07-2025
- Business
- Mint
PC Jeweller vs Senco Gold vs Kalyan Jewellers: Which stock to buy ahead of Q1 results 2025?
Jewellery stocks: The jewellery sector is witnessing momemtum as investors look forward to the Q1 FY26 results of listed companies such as PC Jeweller, Senco Gold, and Kalyan Jewellers. Traditionally, this quarter benefits from festive buying during Akshaya Tritiya and the busy wedding season — a pattern that has held true this year as well. Despite some volatility in gold prices, all three firms have noted robust demand in their April to June business updates, driven by high-ticket purchases and strong customer turnout. Senco Gold said that festivals such as Poila Boishakh and Baisakhi led to increased footfall at its stores. Kalyan Jewellers experienced strong customer engagement across both India and the Middle East. PC Jeweller, with its primary focus on the domestic market, witnessed a significant rise in demand fueled by wedding and festive buying. According to Gaurav Goel, Founder & Director at Fynocrat Technologies, all three companies have had a strong quarter, but for a risk-averse investor, Senco Gold stands out as the more balanced and dependable choice. It has shown steady growth, improved margins, and continued to build its brand while being transparent in its business updates. Senco Gold posted 28 percent growth in total revenue, including 24 percent growth in retail revenue and a 19 percent rise in same-store sales. It opened nine new jewellery stores and continued building its portfolio of sub-brands like Sennes and Everlite. The company also said that diamond jewellery remained in strong demand and that gold exchange made up 40 percent of its overall sales. Kalyan Jewellers reported a 31 percent growth in overall revenue and highlighted that its digital-first platform, Candere, grew by 67 percent compared to last year. The company opened 19 new showrooms during the quarter and confirmed plans to add 170 more across India and international markets this year PC Jeweller reported the highest revenue growth among the three, at around 80 percent compared to the same period last year. The company said this growth was driven by strong wedding and festive demand. It also reported that it has further reduced its outstanding debt and remains on track to become debt-free by the end of FY26. Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, said on all three jewellery stocks - PC Jeweller has recently broken out above the ₹ 12 level, achieving a new 52-week high at ₹ 19 on the weekly chart. The formation of a bullish engulfing pattern further confirms strong bullish momentum and the possibility of continued rally. However, the stock is currently in an overbought condition, and a stiff resistance is evident around the ₹ 20–22 zone. A decisive breakout above this resistance would be necessary for the next leg of the rally. For now, support is seen around ₹ 13–14. Traders are advised to avoid fresh positions at current levels and instead look for buying opportunities near the support zone. A dip-buying strategy may be considered with a stop-loss at ₹ 12 and an upside target of ₹ 22. Senco Gold has formed a bullish engulfing pattern on the weekly chart, a classic bullish signal that indicates potential for further upside momentum. The stock also appears to be rebounding from key Fibonacci retracement levels, supporting the likelihood of a continued upward trajectory. The expected upside range is projected between ₹ 470 and ₹ 510 in the coming months. Investors holding the stock may consider maintaining their positions, with a stop-loss placed at ₹ 300, while targeting the ₹ 420 mark in the medium term. Kalyan Jewellers has witnessed a significant trendline breakout on the monthly chart, particularly above the ₹ 570 mark, indicating the potential for a strong upward move. This breakout is visible on both the weekly and monthly timeframes, suggesting robust bullish sentiment. In the short term, technical indicators such as the RSI are showing strength, further supporting the bullish bias. Considering the overall structure, traders may adopt a "buy on dips" strategy, especially around the ₹ 550–570 zone, which now acts as a crucial support area and could offer an attractive entry point for medium to long-term gains. So, Investor can hold and buy this stock with stop loss of 530 for the target price of 650. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
12-07-2025
- Business
- Economic Times
Gold rally cools but jewellery stocks sparkle with up to 45% return in FY26
Let's take a closer look at what's fueling this rally: Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel India's top jewellery stocks have put on a dazzling show in FY26, with share prices of PC Jeweller , Kalyan Jewellers, Senco Gold , and Titan Company surging between 10% and 45% so far this fiscal. Although gold prices have eased slightly following a sharp run-up, and macroeconomic uncertainties persist, these stocks have remained unaffected — a testament to the strong investor confidence in the sector's resilience, sustained demand, and promising growth rally isn't just sentiment-driven—it's backed by solid fundamentals. All four players delivered strong Q1 business updates, each benefiting from a combination of factors — including robust revenue growth driven by Akshaya Tritiya sales, regional festivities, and aggressive showroom expansion. Consumer preferences are also evolving, with a clear shift toward lightweight jewellery and gold coins, while brands are bolstering performance through strategic marketing efforts and prudent debt management. Together, these trends highlight the sector's ability to shine even amid challenging macroeconomic performance in FY26 so far shows PC Jeweller leading the pack with a sharp gain of 44%, followed by Kalyan Jewellers India and Senco Gold, both rising about 25%. Meanwhile, Titan—the largest company by market capitalization in the segment—has registered a gain of 12%.PC Jeweller made a powerful comeback in FY26, emerging as the top performer among gold stocks. A massive 80% year-on-year revenue spike in Q1 — thanks to strong wedding and festive demand — set the tone. But what truly caught investor attention was the company's sharp focus on debt reduction, trimming bank borrowings by 7.5% in Q1, following a 50% cut in FY25. With plans to go debt-free by FY26-end, and operational momentum backing that target, investor confidence surged. The market rewarded PC Jeweller's discipline and ambition — with stock prices gleaming early in the fiscal Jewellers is proving the power of multi-channel growth, clocking 31% revenue growth across Indian and international markets in Q1. India operations thrived with an 18% jump in same-store sales, while its digital-first brand Candere soared with 67% growth, fuelled by a fresh marketing campaign and strong online traction. Overseas markets — particularly the Middle East — also held up well, contributing 15% to consolidated revenue. With a massive showroom rollout planned (170 in FY26) and momentum across physical and digital fronts, Kalyan is all set for a golden expansion Gold sparkled this year with a perfect blend of strong festive traction, rapid retail expansion, and creative marketing. Q1 revenue jumped 28%, including 24% YoY retail growth and 19% same-store sales growth (SSSG) — driven by high footfall during Akshaya Tritiya, Poila Baishakh, and Baisakhi. Despite a 32% YoY rise in gold prices, the brand sustained demand with clever tactics like promoting old gold exchange, which made up 40% of total sales. With 9 new stores added in Q1 and fresh campaigns like Bangle Utsav and The Golden Curve drawing crowds, Senco is shaping up as a major contender in the modern jewellery the most diversified and stable player in the pack, continues to play the long game — and win. Tanishq's domestic jewellery business grew 18% YoY in Q1, while high gold prices nudged consumers toward lighter jewellery and gold coins. Though the studded jewellery segment saw slightly muted volume growth, overall ticket sizes increased, helping drive early double-digit Titan's US jewellery business nearly doubled YoY, boosting the company's international revenue by 49%. The company also added 19 jewellery stores in India and launched outlets in Dubai and Sharjah, showcasing its global push. Add in strong growth in watches (+23%) and eyewear (+12%), and Titan proves once again why it remains a solid gold pick in uncertain times.
