Multibagger Stock: The shares of PC Jeweller Limited zoomed 9.97% on Friday’s early trades and got locked at an upper circuit. Moreover, they have reached a fresh 52-week high of ₹ 47.45 apiece.
The shares have rallied by a whopping 56.86% in the past week. This means that if investors would have invested ₹ 1,00,000 in the shares of the company a week ago, the value of their holdings would have been ₹1,56,860 in a week.
In fact, the shares have given multibagger returns of 101.91% in the past month. Therefore, an investment of ₹ 1,00,000 made in the shares a month ago, would be worth ₹ 2,01,910 today!
An increase was noticed in the share prices of the company even though the government has raised the basic import duty on gold to 12.5% from 7.5% at the beginning of July.
PC Jeweller has been a big wealth destroyer in the past. The shares were trading at ₹ 73.50 apiece in December 2012. They reached ₹ 560 levels in 2018, after which they tumbled. During the 2020 market crash, they had contracted to ₹ 9.65 levels.
“We would like to clarify that as per Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the Company make timely disclosures of all the events, information etc. that have a bearing on the operation/ performance of the Company which include all price sensitive information etc. We hereby also confirm that at present the Company is not having any such information, which may have a bearing on the price of the scrip and requires disclosure as aforesaid. This is for your information and record,” the company clarified in a letter to the Securities and Exchange Board of India (SEBI).
1,27,85,059 shares had changed hands on the NSE by 11:35 AM on Friday. The company is trading at a PE (TTM) of 16.59. It has an ideal debt-to-equity ratio of 0.87. However, its revenue and profits show a negative trend as per annual data compiled for the past five financial years.
PC Jewellers is a small cap company, with a market capitalization of ₹ 2,008 crores. It is engaged in manufacturing, selling and trading gold jewellery, diamond-studded jewellery and silver articles.
Written By: Simran Bafna
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