This jeweller engaged in manufacturing, selling, and trading gold jewelry, diamond-studded jewelry, and silver items, jumped nearly 6 percent after the company approved settlement of Rs 1510 crore debt.
Stock Performance
With a market capitalization of Rs 7,523.42 crore, PC Jeweller Ltd gained nearly 6 percent and made an intraday high of Rs 14.19 per share compared to its previous closing price of Rs 13.41 per share. The shares reiterated from the day’s high and were trading at Rs 13.93 which is 4 percent higher than the previous close.
What Happened
In an exchange filing on Monday, the company stated that its Board had approved the allotment of 51.71 crore shares to a consortium of lenders via a preferential issue to settle a Rs 1,510 crore debt. The shares each having a face value of Re 1, will be sold at an issue price of Rs 29.20 per share. The consortium comprises 14 banks with State Bank of India, Union Bank of India and Punjab National Bank being the top lenders.
Company Overview
PC Jeweller Limited is engaged in manufacturing, selling, and trading jewelry. It offers a wide range of products, including 100 percent hallmarked gold jewelry, diamond-studded pieces, and silver articles.
The company deals in gold, diamonds, silver, and precious stones, offering pendants, earrings, chains, rings, bangles, bracelets, nose pins, and necklaces. Subsidiaries include Luxury Products Trendsetter Pvt Ltd, PC Universal Pvt Ltd, PCJ Gems & Jewellery Ltd and PC Jeweller Global DMCC.
Financial Performance
When looking at the financials, PC Jeweller reported an astonishing 1498 percent increase in revenue from Rs 40 crore in Q3 FY24 to Rs 639 crore in Q3 FY25. Along with this, the company’s net profits stood at Rs 148 crore as compared to a loss of Rs 198 crore during the same quarter last year.
Industry Outlook
India’s gems and jewellery sector will be driven by large retailers and established brands, boosting the organised market. Improved availability, low-cost gold metal loans, and stable gold prices are expected to aid volume growth in the short to medium term. The industry itself is projected to reach USD 100 billion by 2027.
Written by Shwetha Sairam
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