PC Jeweller Stock Surges 16.75% with SBI and LIC Backing

PC Jeweller Stock Surges : Shares of PC Jeweller Ltd, a penny stock in the jewellery sector, soared 16.75% to ₹16.38 per share from its previous close of ₹14.03 on Friday, July 4, 2025. The stock witnessed a massive surge in trading volume, up more than 11 times on the BSE, driven by strong investor interest. Backed by a 2.70% stake from the State Bank of India (SBI) and a 1.03% stake from the Life Insurance Corporation of India (LIC), the stock has delivered multibagger returns of 256% from its 52-week low of ₹5.10. Here’s why the stock is making waves.

Stellar Q1 Performance

PC Jeweller Ltd reported a robust quarter ending June 30, 2025, fueled by strong customer demand and trust. The company’s financials showed significant growth, with a 97% surge in net profit to ₹19.7 crore and a 35.8% increase in revenue to ₹108.2 crore compared to the same period last year. EBITDA margins expanded to 26.2% from 15.6%, reflecting improved operational efficiency. This strong performance has bolstered investor confidence, contributing to the stock’s rally.

Debt Reduction and Turnaround Story

A key factor behind the stock’s surge is PC Jeweller’s successful debt reduction efforts. The company slashed its debt by 52% in FY25, strengthening its balance sheet and signaling a turnaround. On March 17, 2025, the board allotted 51,71,14,620 equity shares to 14 banks at ₹29.20 per share to settle outstanding debts, a move approved by BSE and NSE. Additionally, on May 29, 2025, the company issued 3,08,42,400 equity shares to a promoter group entity upon warrant conversion, further supporting its financial restructuring. These steps have enhanced the company’s credibility and attracted institutional investors.

Institutional Backing and Market Momentum

The presence of SBI and LIC as stakeholders has added credibility to PC Jeweller’s growth story. Foreign Institutional Investors (FIIs) also increased their stake in Q1 FY25, further fueling optimism. The stock’s 52-week high of ₹19.60 and low of ₹5.10 highlight its volatility, but the recent volume spurt—over 11 times the average on July 4—indicates strong buying interest. The company’s diverse portfolio, including brands like Azva, Swarn Dharohar, and LoveGold, continues to resonate with customers, driving sales.

Company Overview

PC Jeweller Ltd, a leading Indian jewellery company, designs, manufactures, and sells gold, platinum, diamond, and silver jewellery. Operating across India, the company has expanded its presence with multiple brands and even ventured into commemorative medallions. Its focus on quality and customer trust has positioned it as a key player in the competitive jewellery market, with a growing order book signaling future potential.

Investor Considerations

While PC Jeweller’s turnaround and institutional backing are encouraging, penny stocks are inherently volatile. The stock’s price-to-earnings ratio remains elevated, and investors should exercise caution due to potential market fluctuations. Analysts recommend focusing on the company’s fundamentals, such as its debt reduction and profit growth, while monitoring broader market trends. The stock’s multibagger status, with 256% returns from its 52-week low, makes it appealing, but thorough research is essential before investing.

Conclusion

PC Jeweller’s 16.75% surge reflects its strong Q1 performance, significant debt reduction, and backing from institutional giants like SBI and LIC. The company’s turnaround story, coupled with high trading volume and FII interest, has fueled its multibagger status. However, investors should weigh the risks of penny stocks and conduct diligent research before diving in.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock market investments are subject to risks. Always consult a financial advisor before making investment decisions.

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