Jewellery Stock In Focus As Equity Allotment, Q2 Results, And Bank Settlement Gets Approval

PC Jeweller Ltd (PCJ) reported a drop in the value of its shares by 3.93% falling from Rs 145.15 to Rs 139.45 today. This comes as the company makes big announcements such as an equity allotment, strong financials and a one-time settlement of debt with the Bank of India has been approved.

The 52-week range for the stock on OTC has been Rs 27.66 and Rs 186.80 suggesting a healthy bounce back over a year period. PC Jeweller's reversal in stock price has resulted in more than 400% return since the 52-week low suggesting there is significant demand from investors in the company.

On 21 December 2020, PC Jeweller allotted 3,63,75,000 warrants which were converted into equity shares in favour of six non-promoter public investors. The investment in this transaction provided Rs 153.32 cn which is 75% of the issue price per warrant and as a result, the company's paid-up equity share capital which stood at Rs 536.09 of the company increased. The company's improved capitalization would result in future growth as the equity shares will have the same rank as the existing shares.

PC Jeweller's operating revenue grew by 12.4% YoY to reach Rs 504.97 crore for the period. The company's net sales also recorded strong performance for Q2FY25 where they reached 504.97 crores in returns.

The company posted a net profit of Rs 178.88 crore as compared to a net loss of Rs 138.13 crore in the second quarter of FY24, which is a more than 230% improvement in net positive earnings.

In the first six months of FY25, net sales surged by 75.3% up to 906.12 crore rupees as compared to the preceding half-year. The firm recorded net profits of Rs 334.94 crore, a significant return from a net loss of Rs 309.75 crore in H1FY24, representing an improvement of two hundred and eight per cent. Such performances confirm PC Jeweller's gradual resurgence and the increasing demand for its products.

In another positive development, PC Jeweller's 'One-Time Settlement' (OTS) proposal with the Bank of India has been duly executed thus putting an end to several debts owed to the bank consortium. In order to increase stock liquidity and improve the offer of shares to investors, PC Jeweller has instituted a stock split.

In September 2024, PC Jeweller was able to obtain a refund of Rs 67.54 crore from the Income Tax Department and this added to the further strengthening of its financial health.
PC Jeweller Ltd is an established brand in the Indian ornament market designing, manufacturing and retailing gold, diamond, platinum and silver jewellery. Apart from notable brands like Azva, Swarn Dharohar and LoveGold, PC Jeweller has also made tribute medallions for the World Cup Cricket event, further accentuating its presence in the luxury jewellery segment of India.