Multibagger jewellery stock under Rs 20 jumps over 6% after announcing Q1FY26 results & to become debt-free by the end of FY26

DSIJ Intelligence-1 / 04 Aug 2025/ Categories: Multibaggers, Penny Stocks, Trending

Multibagger jewellery stock under Rs 20 jumps over 6% after announcing Q1FY26 results & to become debt-free by the end of FY26

The stock is up by 93.33 per cent from its 52-week low of Rs 8.25 per share and has given multibagger returns of over 800 per cent in 5 years.

Today, shares of PC Jeweller Ltd jumped 6.2 per cent to an intraday high of Rs 15.95 per share from its previous closing of Rs 15.02 per share. The stock’s 52-week high is Rs 19.65 per share and its 52-week low is Rs 8.25 per share.

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 marks a significant improvement compared to Q1 of the previous financial year, where the reported PAT was Rs 155 crore (on sales of Rs 401 crore). However, the prior year's figure included an exceptional Income Tax refund and interest of Rs 106 crore. Adjusting for this, the Net Operating PAT in Q1 of the previous financial year was Rs 49 crore. This demonstrates a substantial operating PAT increase of over 234 per cent from Rs 49 crore to Rs 164 crore year-over-year.

The Company's finance cost in Q1 of the previous financial year was nearly negligible, approximately Rs 1.8 crore, due to an interest moratorium until December 2024. Finance costs began to be incurred only from Q4 of the previous financial year. Despite incurring a finance cost of approximately Rs 41.6 crore in Q1 of this financial year, the Company still achieved a substantial PAT of Rs 164 crore. The Company is committed to servicing its financial obligations promptly, and as outstanding debt is repaid, finance costs are expected to decrease. The goal is to become debt-free by the end of FY 2025-2026, eliminating all borrowing-related finance costs.

In line with its objective to become debt-free by the end of FY 2025-2026, the Company has made significant strides in reducing its outstanding debt. During the previous financial year, approximately Rs 2,005 crore of debt was discharged through a combination of equity issuance and cash payments. Further debt repayments of Rs 155 crore in Q1 of this financial year and an additional Rs 180 crore in July 2025 have reduced the remaining outstanding bank debt to approximately Rs 1,440 crore. The Company also raised Rs 2,702.11 crore in the previous financial year via preferential issue of fully convertible warrants, of which approximately Rs 1,417 crore has been received. The remaining Rs 1,285 crore will be realized upon warrant conversion. Additionally, the Board approved raising another Rs 500 crore via preferential allotment, ensuring the remaining Rs 1,440 crore of outstanding debt is well covered.

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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 has a market cap of over Rs 9,800 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 93.33 per cent from its 52-week low of Rs 8.25 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.