Jewellery penny stock under Rs 20: PC Jewellers Ltd successfully concluded its Joint Settlement Agreement with its Consortium Lenders
DSIJ Intelligence-1 / 13 Oct 2025/ Categories: Multibaggers, Penny Stocks, Trending
The stock is up by 26.5 per cent from its 52-week low of Rs 10.21 per share and has given multibagger returns of over 800 per cent in 5 years.
PC Jeweller Ltd has successfully concluded its Joint Settlement Agreement with its Consortium Lenders. Following a favourable order from the Debts Recovery Appellate Tribunal, Kolkata (holding additional charge of DRAT, Delhi) on October 7, 2025, which directed the handover of assets, the company has completed the process of regaining possession of its showrooms and inventory. Specifically, the handover of keys and inventory for the South Extension (Delhi), Kingsway Camp (Delhi), Karol Bagh (Delhi), and Noida (Uttar Pradesh) locations was completed on October 9th and 10th, 2025. As a result, the company is now in full possession of all its inventory, which is no longer under the custody of the DRAT, Delhi, or any other authority.
Additionally, the Company delivered a strong business update for the quarter ended September 30, 2025, primarily driven by robust consumer demand during the festive season. Standalone revenue saw substantial year-over-year growth of approximately 63 per cent. A key strategic achievement for the quarter was the significant progress in deleveraging the balance sheet, with outstanding Bank debt reduced by roughly 23 per cent, keeping the Company on track for its goal of becoming entirely debt-free by the end of FY 2025-26. Additionally, the Company expanded its retail footprint by opening a new franchise-owned showroom in Pitampura, Delhi.
About the Company
PC Jeweller Ltd is an Indian company that designs, manufactures, sells and trades gold, platinum, diamond and silver jewellery. They operate across India with multiple brands, including Azva, Swarn Dharohar and LoveGold and even created commemorative medallions for the Cricket World Cup.
The Company reported a Profit After Tax (PAT) of Rs 164 crore on sales of Rs 725 crore in Q1 of the current financial year. This represents a significant improvement over the previous year's Q1, which saw a PAT of Rs 155 crore on sales of Rs 401 crore. Crucially, after adjusting for an exceptional Income Tax refund and interest of Rs 106 crore in the prior year, the Net Operating PAT for Q1 of the previous financial year was Rs 49 crore. This highlights a substantial 234 per cent year-over-year increase in operating PAT, from Rs 49 crore to Rs 164 crore.
Despite incurring finance costs of approximately Rs 41.6 crore in Q1 of this financial year (compared to a nearly negligible Rs 1.8 crore in Q1 of the previous financial year due to an interest moratorium), the Company still achieved a robust PAT of Rs 164 crore.
The company has a market cap of over Rs 8,000 crore. As of June 2025, State Bank of India (SBI) holds a 2.69 per cent stake and the Life Insurance Corporation of India (LIC) owns a 1.03 per cent stake in the company. The stock is up by 26.5 per cent from its 52-week low of Rs 10.21 per share and has given multibagger returns of over 800 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.