PC Jeweller zooms 10% for 2nd straight session, up 21% in 2 days; here’s why

Shares of PC Jeweller skyrocketed 10 percent in intra-day deals on Tuesday, July 9, to ₹61.80 apiece, after 1.9 million shares of the company changed hands in a block deal, as per Bloomberg data. The details of the buyers and sellers were not immediately disclosed.

This marks the second consecutive session with a 10 percent increase in the stock. On the previous day (July 8), the stock hit the 10 percent upper circuit following approval from Punjab National Bank (PNB) for its One Time Settlement (OTS) proposal for outstanding dues.

Just in the 2 sessions, the stock soared 21 percent. Post today's rally, the stock is just a little over 7 percent away from its 52-week high of ₹66.63, hit on March 5, 2024. Meanwhile, it has surged 143 percent from its 52-week low of ₹25.45, hit on October 4, 2023.

The scrip has jumped 73 percent in the last 1 year and over 32 percent in 2024 YTD. It has advanced over 20 percent just in July after a 10 percent jump in June. Prior to that, it was in the red for 3 straight months between March and May, down 20 percent in this period. Meanwhile, it rose 4.6 percent in February and 18 percent in January 2024.

PC Jeweller announced in a regulatory filing on July 6 that Punjab National Bank, the third largest bank in the consortium after the State Bank of India, approved the company's One Time Settlement (OTS) proposal. The OTS aims to settle outstanding dues with the bank consortium. The approved terms and conditions include cash and equity components, the release of securities, and mortgaged properties held by the banks.

Before PNB, Union Bank of India approved an OTS proposal in June.

This latest development comes three months after the State Bank of India (SBI), the country's largest lender, accepted PC Jeweller's OTS proposal. PC Jeweller has faced difficulties since February last year when banks recalled loans totaling ₹3,466 crore due to the company's loan default disclosures. According to its 2021-22 annual report, PC Jeweller had loans from 14 banks, including SBI, Indian Bank, Union Bank, and Punjab National Bank.

Earlier, in its March quarter investor presentation, the company emphasised that SBI's withdrawal of the petition from the National Company Law Tribunal (NCLT) and the favorable consideration of its OTS proposal by the banks were positive developments. Consequently, the company has refocused on enhancing its brand presence and has launched new marketing initiatives, expecting noticeable impacts in the first quarter of the current fiscal year. As of March 31, 2024, PC Jeweller maintains a network of 60 showrooms (including 6 franchisee showrooms) in 44 cities across 15 states in India.

On a consolidated basis, PC Jeweller reported a net loss of ₹121.64 crore in Q4 2024, compared to a net loss of ₹302.41 crore in Q4 2023.

PC Jeweller is one of the leading players in the gems and jewellery segment in India. It is engaged in the manufacture, retail and export of gold, diamond and studded jewellery.