SBI holds 2.70% stake & LIC holds 1.03% stake: Multibagger jewellery stock under Rs 20 jumps 5.5% on June 15 & over 1,100% in 5 years!

Today, shares of PC Jeweller Ltd jumped 5.5 per cent to Rs 17.97 per share from its previous closing of Rs 17.04 per share. The stock’s 52-week high is Rs 19.62 per share and its 52-week low is Rs 6.61 per share.

PC Jeweller Ltd (PCJ) has announced a significant increase in its authorised share capital, raising it from Rs 1,260 crore to Rs 1,310 crore. This expansion is achieved by creating an additional 50 crore equity shares, each with a face value of Rs 1. The company's capital clause in its Memorandum of Association will be altered accordingly to reflect this change, facilitating future financial manoeuvres and growth strategies.

In a move to raise substantial funds, PCJ plans a preferential allotment on a private placement basis, aiming to secure up to Rs 499,99,99,986. This will involve issuing 9,72,22,222 fully convertible warrants to the promoter group, led by Balram Garg, at Rs 18 per warrant, totalling approximately Rs 175 crore. Additionally, 18,05,55,555 equity shares will be allotted to the "Non-Promoter, Public Category," specifically to Capital Ventures Private Limited, also at Rs 18 per share, raising around Rs 325 crore. These issuances, subject to member and regulatory approvals, will significantly alter the company's shareholding structure on a fully diluted basis.

Additionally, the company has reported a highly successful quarter ending June 30, 2025, demonstrating robust performance driven by strong customer trust and demand. The company achieved an impressive standalone revenue growth of approximately 80 per cent compared to the same quarter last year, despite the volatility in gold prices. This significant growth was primarily fuelled by high demand for its products, likely due to wedding and festive purchases during the period.

Furthermore, PC Jeweller made substantial progress in reducing its debt burden. Having already decreased outstanding debts to its bankers by over 50 per cent in FY 2024-25, the company further reduced this by approximately 7.50 per cent during the recent quarter. PCJ is confident in its ability to become completely debt-free by the end of FY 2026, a key target for the company. These positive financial results reflect the ongoing efforts to revamp and strengthen all aspects of its operations, and PC Jeweller remains optimistic about continued exceptional performance in the coming quarters.

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 reduced the debt by 52 per cent to Rs 2,151 crore compared to Rs 4,150 crore in March 2024.

Quarterly Results: The net sales increased by 1,356 per cent to Rs 699 crore in Q4FY25 compared to Q4FY24. The company reported a turnaround net profit of Rs 95 crore in Q4FY25 compared to a net loss of Rs 122 crore in Q4FY24: increasing 178 per cent.

Annual Results: The net sales increased by 272 per cent to Rs 2,245 crore in FY25 compared to FY24. The company reported a turnaround net profit of Rs 578 crore in FY25 compared to a net loss of Rs 629 crore in FY24; increasing 192 per cent YoY.

The company has a market cap of over Rs 11,000 crore. As of March 2025, State Bank of India (SBI) holds a 2.70 per cent stake and the Life Insurance Corporation of India (LIC) owns a 1.03 per cent stake in the company. The stock gave multibagger returns of over 170 per cent from its 52-week low of Rs 6.61 per share and a whopping 1,100 per cent in 5 years.

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