The PC Jeweller stock extended gains for the third straight session on strong value buying in the counter. The stock is up 92% in three sessions , signifying a strong recovery. The stock has been surging ahead of its board meeting to be held on May 10 to consider the proposed buyback of fully paid-up equity shares of the company.
At 11:34 am, the stock was trading 31.37% or 54 points higher at 229.30 on BSE. It opened at 192 level today and hit an intra day high of 240.30 on the BSE. The stock's market capitalisation rose to 8,764 crore.
It hit its 52-week low of 95.05 on May 5, 2018. The stock has gained over 152 percent since then considering today's intra day high level of 240.
The stock opened with a gain of 10% in morning trade. The stock is the most traded on BSE with 1.02 crore shares changing hands in 87, 974 trades on the stock exchange. Its total turnover stood at Rs 22,577 lakh, the highest on BSE.
The stock is the top gainer on BSE in today's trade.
On May 25, the firm will announce its earnings for the quarter ended March 31, 2018.
The board members, PC Jeweller said, will also consider recommendation of dividend on preference shares for the period from April 1, 2017 to September 1, 2017, and recommendation of dividend, if any, on equity shares for the financial year 2017-18.
"In view of the same in terms of the Company's "Code of Conduct to Regulate, Monitor and Report Trading by Insiders", the Trading Window for trading in the shares of the Company shall remain closed from April 30, 2018 to May 27, 2018 (both days inclusive)," PC Jeweller further said in its filing.
On January 16, 2018, the stock touched its yearly high of 600.65 level. Since then, the stock fell more than 81% on BSE till may 2.
The company has been mired primarily in two issues.
First, there has been speculation that the company's promoters might have held back information on a business relationship with e-governance service provider Vakrangee, a company, which according to reports came under Sebi's scanner for alleged price and volume manipulations of its own stock on BSE and NSE. However, Vakrangee on February 3 clarified that rumours of involvement of company in price and volume manipulation were completely baseless and factually incorrect.
On January 25, 2018, Vakrangee bought 20 lakh shares of PC Jeweller at Rs 561.71 on NSE.
Secondly, according to reports, PC Jewellers promoter Padam Chand Gupta gifted some his stake to family members via off -market transactions. Even as the firm has said it would make requisite disclosures in this regard from time to time, there are fears about more such deals taking place in the future.
PC Jeweller Limited is engaged in the business of manufacture, retail and export of jewellery. It offers a range of products including 100% hallmarked gold jewellery, certified diamond jewellery and other jewellery, including silver articles, with a focus on diamond jewellery and jewellery for weddings.
Established in 2005, PC Jeweller is the second-largest listed jewellery retailer in India.