Jewellery penny stock under Rs 20 surges after DRAT orders handover of company keys & inventory, Details inside!

Today, shares of PC Jeweller Ltd surged 2.1 per cent to an Intraday high of Rs 13.22 per share from its previous closing of Rs 12.95 per share. The stock’s 52-week high is Rs 19.65 per share and its 52-week low is Rs 10.21 per share.

The company has fully complied with the terms and conditions of the Joint Settlement Agreement dated September 30, 2024, which was executed with the Consortium Lenders. Following this compliance, the company and all Consortium Lenders filed a Joint Application with the Debts Recovery Appellate Tribunal, Delhi (DRAT, Delhi). In a significant development, the Debts Recovery Appellate Tribunal, Kolkata (holding additional charge of DRAT, Delhi) issued an order on October 07, 2025, allowing the Joint Application and directing the handover of the keys and inventory to the company for all its showrooms and premises that had previously been in the custody of the DRAT, Delhi.

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 8,500 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 29.5 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.