Shares of PC Jeweller Ltd have staged a powerful recovery this week, climbing 12% to reach ₹11 per share. This marks a significant turnaround after the stock touched a 14-month low of ₹9.70 just last week, representing a recovery of 13.40% from that bottom.
A Technical Rebound Amid Strong Fundamentals
Market analysts attribute this sharp upmove primarily to technical factors, noting the absence of any fresh fundamental trigger. This weekly gain is the stock's most substantial in five months. The rally comes after a period of sustained pressure that began when the stock hit its 52-week high of ₹19.65 in July. Despite the recent surge, the current price remains approximately 44% below that peak.
The long-term picture for PC Jeweller, however, tells a story of robust wealth creation. Over a two-year horizon, the stock has delivered a staggering 287% return to its shareholders. Zooming out to a five-year period, the gains are even more impressive at 550%. Retail investors, who held a collective 47.7% stake in the company at the end of the September quarter, have been major beneficiaries of this growth.
Strategic Expansion and Strong Q2 Performance
In a significant development, the company announced via a regulatory filing that it has secured approval from the Uttar Pradesh government to join the CM-YUVA portal. Leveraging this initiative, PC Jeweller has unveiled an ambitious plan to open 1,000 jewellery retail franchise outlets, aiming to boost entrepreneurship and generate employment across the state.
This expansion drive is backed by a solid financial performance in the second quarter of the fiscal year 2025 (Q2FY26). The company reported a 17.3% year-on-year increase in consolidated net profit, which stood at ₹209.5 crore. This growth was fueled by strong festive-season demand.
The operational metrics were equally strong. Revenue from operations witnessed a remarkable surge of 63.4% to ₹825.2 crore. EBITDA more than doubled to ₹177.5 crore, with margins expanding to 21.5%, indicating substantially improved operational efficiency and robust sales momentum.
Debt Reduction and Future Outlook
A key focus area for the company continues to be strengthening its balance sheet. PC Jeweller reduced its outstanding debt by 23% during the September quarter. This follows a 9% reduction in the first quarter and a cut of over 50% in the previous fiscal year. The management has reiterated its target of becoming completely debt-free by the end of FY26.
Achieving this debt-free status is expected to eliminate finance costs and allow the company to meet all its working capital requirements through internal operations, thereby improving profitability further.
On the retail front, the company expanded its presence during Q2 with a new franchise showroom in Pitampura, Delhi, and has stated its commitment to exploring more opportunities to widen its footprint. With rising consumer demand, stronger revenue streams, and continuously improving operations, PC Jeweller expresses confidence in sustaining its current growth trajectory.
Disclaimer: Investors are advised to consult certified investment experts before making any financial decisions.
