Wealth Destroyer To Multibagger Stock In A Month: Check Details

Counted as among the wealth destroyer, the stock of PC Jeweller is showing a run-up. In the last 1-month the stock has doubled investors' money with return of 134%. Note this stock has plummeted from its all time high price of Rs. 600.65 to its all time low of Rs. 7.75 per share.

Why collapse then and why significant gains in just a month?

As per reports, PC Jeweller stock met misfortune as there was seen an abrupt shift in focus which crippled the company's balance sheet, resulting in serious asset-liability mismatch.

Also, as for now, while there has been questions around as to why the stock is making significant moves, the company recently clarified that there is nothing to make a disclosure.

There is a view also that as there is risk averse mood that is getting a lift gold stocks are gaining traction. Also, an anticipating that a fair monsoon and upcoming wedding season shall boost the demand for gold is also to an extent supporting the company's share price. Pertinently, gold in the country has turned costlier despite sharp decline overseas after the government in order to curb gold imports increased customs duty on it.

Should investors in PC Jeweller make an exit?

As per experts, the company's fundamentals are not supportive of the steep rise in its share price and hence it shall be wise to offload positions in the stock. This is inferred as compared to its peers the company lagged in terms of its operating margin for the most recent quarter.