Synopsis:
PC Jeweller’s stock hit a 10% lower circuit after a rally, as exchanges imposed (ASM) surveillance amid volatility.
The shares of a Small-Cap jewellery company, specializing in the business of manufacturing, selling, and trading gold jewellery, diamond-studded jewellery, and silver items, hit a 10 percent lower circuit after exchanges initiated additional surveillance measures due to the stock’s volatility.
With a market capitalization of Rs. 11,243.51 crores on Tuesday, the shares of PC Jeweller Limited hit a 10 percent lower circuit, making a low of Rs. 16.85 per share compared to its previous closing price of Rs. 18.72 per share.
PC Jeweller Limited, engaged in the business of manufacturing, selling, and trading gold jewellery, diamond-studded jewellery, and silver items, dropped by 10 percent on July 8 after NSE and BSE placed the stock under short-term Additional Surveillance Measures (ASM).
The stock had a sharp 45% rally in the past month and a 206% rise over the past year. The company reported strong demand during the June quarter, with good revenue growth and significant debt reduction. The company had recently announced plans to raise funds through a preferential share allotment to clear a Rs. 1,510 crore debt. Despite this, the stock’s volatility led to the surveillance action.
The Additional Surveillance Measure (ASM) framework is a regulatory tool introduced by SEBI and Indian stock exchanges to enhance market integrity and protect investors from excessive volatility and speculative trading. Stocks placed under ASM are subject to tighter trading restrictions, such as higher margin requirements and limits on intraday leverage, to curb abnormal price movements and potential manipulation.
Financials & Others
The company’s revenue rose by 1,075.85 percent from Rs. 59.54 crore to Rs. 700.1 crore in Q4FY24-25. Meanwhile, the Net loss of Rs. 121.64 crore turned into a profit of Rs. 94.78 crore during the same period.
The company has a P/E ratio of 21.27, which is significantly lower than the industry average of 44.46, indicating potential undervaluation. It maintains a low debt-to-equity ratio of 0.35 and has delivered an average net profit growth of 17.19% over the past three years.
PC Jeweller Limited, founded in 2005 in New Delhi, is a leading organised retail jeweller in India. It operates around 80 showrooms across 66–67 cities in 17 states, focusing on large-format stores offering hallmarked gold, certified diamond jewellery, and silver articles, especially wedding and diamond collections The company integrates manufacturing, retail, and export activities, emphasizing quality, transparency, and customer-centric policies, alongside an online platform “WearYourShine”.
Written by Sridhar J
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