PC Jeweller is one of the largest jewellery companies in India which is engaged in the business of jewellery export, manufacture, and retail.Market Capitalisation
The market capitalisation of PC Jeweller Limited as of August 23, 2018 was close to Rs.3,600 crore.
Company’s Wealth and Recent Performance
- For the quarter ended on June 30, 2018, the company reported its total income to be at Rs.2,455 crore. The revenue improved by more than Rs.400 crore - q-o-q and y-o-y.
- The total expenses for the June quarter were stated to be worth Rs.2,261.7 crore - an increase of a little over 10% in the expenses with respect to the figure reported for the same quarter of the previous year.
- Considering the total profit after tax for the period, it was stated to be at Rs.141.93 crore as against a PAT of Rs.135.8 crore reported for the Q1 FY18. The higher income for the quarter was offset by an increase in the tax expenses and total expenses.
- The basic earnings per share for the quarter stood at Rs.3.60 as against an EPS of Rs.3.79 reported for the same period a year ago.
- As of June 30, 2018, the total liabilities of PC Jeweller Limited stood at Rs.4,609.7 crore - an increase of roughly Rs.480 crore y-o-y.
PC Jeweller Limited Stock Trends in 2018
- PC Jeweller Limited shares started 2018 on a breathtaking note. The share price rose phenomenally in the first two weeks of January - from Rs.470 on January 2 to Rs.576 on January 16. The scrip even reached its 52-week high at Rs.600.65 on the National Stock Exchange. However, in the second half of the month, the shares ended up shedding those gains just as quickly as they made them.
- On February 2, the opening share price of PC Jeweller Limited was Rs.465. The scrip had effectively lost all the gains it made in January. Over the course of the next few weeks, the shares exhibited a bearish trend as the investors reacted to the turbulence and uncertainties caused in the international markets. By the end of March, the PC Jeweller shares had lost a little over 30% in a gradual manner, with the closing price on the 28th being Rs.320.20.
- In April, the shares lost more than 40% to eventually descend into the Rs.100 region. The losses, needless to mention, were quite severe as the closing price at the end of the month was Rs.144.50. The prices recovered marginally in the first week of May and the shares managed to reach their previous levels at Rs.240.
- However, this recovery was immediately followed by a sharp drop in the share price of PC Jeweller Limited. As a result, the shares, once again, retreated back into the Rs.100 region. Through the course of May, June, and first half of July, the shares changed hands at levels varying from Rs.120 - Rs.170.
- In the second half of July, the PC Jeweller stock price hit its 52-week low at Rs.65.30. As of late August, the shares were being traded at levels above Rs.90. This translates into a drop of more than 80% in the prices, since the start of the year.
PC Jeweller Limited Stock Trends in 2016 and 2017
- At the start of 2016, the share price of PC Jeweller Limited was varying at levels around Rs.195 on the National Stock Exchange. The price dipped marginally in the first quarter of the calendar year - by roughly 10%, to touch the Rs.175 mark by the end of March 2016.
- The stock price, over the course of April and most of May, didn’t vary a lot. During this period, the shares were observed trading hands at levels around Rs.175, without incurring any significant gains or losses. Towards the end of May, the shares made minor gains to ascend into the Rs.180 region. Throughout the course of June, the PC Jeweller shares maintained their bearings at levels above Rs.180.
- In the month of July, the share price appreciated by more than 10% on the back of positive developments in the company. As a result, by the end of month, the shares managed to cross the psychologically important mark of Rs.200. For most of August, the shares were seen trading hands at levels varying from Rs.200 - Rs.220.
- In September, the prices rose once again and this time, they crossed the Rs.250 mark. In the same month, PC Jeweller Limited announced a final dividend of 33.5%. Up until demonetisation, the share price remained buoyant at levels above Rs.250. Post demonetisation, the shares lost more than 20% to descend back into the Rs.100 region. The scrip made small recoveries towards the end of the year, to finish 2016 at Rs.198.
- 2017 proved to be a landmark year for the PC Jeweller Limited shareholders. Things didn’t change considerably in the first half of the year. The scrip commenced 2017 trading at Rs.197.53 and rose marginally to cross the Rs.200 mark once again by the end of March.
- The stock price continued to rise steadily through the months of April and May, with the scrip eventually crossing the Rs.220 level. The price rose sharply in the first week of June to cross the Rs.260 mark. In the same month, the company announced a final dividend of 10% and in July, it issued bonus shares in 1:1 ratio.
- It wasn’t until August that the prices spiked sharply once again and the share price appreciated by more than 40% to cross the Rs.380 mark. Following this astounding rally, the stocks found some bearings at levels around Rs.330 - Rs.350, with the investors enjoying excellent gains in this period. In December, the share price of PC Jeweller moved up once again to end the year on a high at Rs.456.75.
Should you invest in PC Jeweller Limited?
- PC Jeweller is one of the largest jewellery retailers in India that operates in the segments of jewellery manufacture, export, and retail. The company operates in more than 60 cities across 18 states in India.
- Considering its financial performance, for the Q1 FY19, the company reported its profit for the period to be at Rs.141.93 crore, as against a profit of Rs.135.82 crore reported for the same quarter of the previous fiscal. This marks a marginal improvement in profit on a y-o-y basis.
- Looking at the stock trends of the company over the last three years, the scrip had a rather average run in 2016. In 2017, the stocks rose remarkably to deliver returns worth more than 60%. In 2018, the scrip touched its 52-week high at Rs.600.65, only to shed all the gains over the course of the next few months. By August, the scrip had lost more than 80% in value and was trading at levels close to Rs.100. Needless to mention, the scrip has been quite volatile and has taken investors by surprise on various occasions.
- While the company has a well-established position in the market owing to its aggressive expansion over the years, it relies on a large working capital to fund its operations. This is on the account of large inventories that need to be maintained across all of its jewellery stores.
- Furthermore, seeing that the company primarily depends on the imports of gold, its profitability, to a certain extent, depends on the regulatory measures in the gold industry. This is because gold imports form an integral part of India’s foreign exchange outgo and in turn, the Current Account Deficit.
- From a long-term perspective, investing in such a stock may not seem like a feasible idea. However, it is strongly recommended to perform your own research before investing.
PC Jeweller Limited is an Indian jewellery company based in Delhi, India. It is a leading player in the business segments such as manufacture, retail, and export of jewellery. Its product offerings comprise 100% hallmarked gold jewellery along with a strong focus on diamond, silver, and other wedding jewelleries. The company presently operates in more than 18 states through its 90+ stores in the country.
History of the Company
PC Jeweller Limited was incorporated in the year 2005 as ‘P Chand Jewellers Private Limited.’ The company commenced its operations through its very first showroom in Karol Bagh, New Delhi. Over the course of next five years, the company expanded its presence in the market by opening up more showrooms. It also commenced manufacturing and exporting operations through its units respectively at Noida SEZ and Selaqui, Dehradun. It continued to open new showrooms over the years, thus subsequently expanding its reach throughout the country. PC Jeweller Limited was converted into a public company in 2011 and its equity shares were listed on the stock markets in 2012 December.
Management of the Company
Mr. Balram Garg - Managing Director and Executive Director
Mr. Balram Garg is presently the Managing Director and Executive Director of PC Jeweller Limited. He has been serving as the MD since the company’s inception in April 2005. He became the Executive Director of the Company in July 2011. He finished his Bachelor’s in Commerce from the University of Delhi.
Mr. Ramesh Kumar Sharma - Chief Operating Officer and Executive Director
Mr. Ramesh Kumar Sharma presently serves as the COO of PC Jeweller Limited - a position he has held since September 2011. He primarily specialises in foreign exchange, credit, and administrative operations, having worked in this industry for 29 years. He joined PC Jeweller in April 2007 and prior to this, he was associated with the State Bank of Bikaner and Jaipur. In addition to this, he is a Certified Associate of Indian Institute of Bankers. He is an alumnus of the University of Jaipur where he obtained a Bachelor’s and Master's’ degree in Commerce.
Mr. Padam Chand Gupta - Chairman (Non-Executive Director)
Mr. Padam Chand Gupta is the founder of PC Jeweller Limited and is also the Chairman of the Board of Directors. He has been serving in the capacity of Non-Executive Director since April 2005. In addition to his present position, he also serves as an Independent Non-Executive Director of Haryana Texprints Overseas Limited.
PC Jeweller Limited Listings in NSE, BSE, and Indices
The equity shares of PC Jeweller Limited are available to the general public for trading on the country’s two landmark stock exchanges - the National Stock Exchange of India Limited and the Stock Exchange, Mumbai. The respective call signs for the same are as follows:
- NSE Code: PCJEWELLER
- BSE Code: 534809
- ISIN: INE785M01013
- Sector: Diamond Cutting & Jewellery & Precious Metals
Coming to the stock market indices, the company comprises the following:
- Nifty 200
- Nifty Alpha 50
- Nifty High Beta 50
- Nifty Midcap 100
- S&P BSE 200
- S&P BSE AllCap
- S&P BSE SmallCap
- S&P BSE 500
- S&P BSE MidSmallCap
PC Jeweller Limited
C-54, Preet Vihar
Delhi - 110-092
Contact number: +91-11-4971-4971
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