Multibagger jewellery stock under Rs 20: Board allots 97,84,800 equity shares on conversion of fully convertible warrants

PC Jeweller Ltd informed that the Company's Board of Directors approved the allotment of 97,84,800 equity shares with a face value of Re 1 each. This allotment occurred upon the conversion of 9,78,480 Fully Convertible Warrants by two allottees from the 'Non-Promoter, Public Category', following the receipt of the balance amount of Rs 4,12,42,932. This action, in accordance with SEBI regulations, has increased the Company's paid-up equity share capital from Rs 692,21,59,350 to Rs 693,19,44,150. The newly issued shares will have equal standing with the Company's existing equity shares.

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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% 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 is actively working towards its goal of becoming debt-free by the end of FY 2025-2026. Significant progress has already been made, with approximately Rs 2,005 crore of debt discharged in the previous financial year and an additional Rs 335 crore repaid in Q1 of this financial year and July 2025. This has reduced the outstanding bank debt to approximately Rs 1,440 crore.

The company has a market cap of over Rs 8,600 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 45.5 per cent from its 52-week low of Rs 9.20 per share and has given multibagger returns of over 700 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.