PC Jeweller shares dip 10% in 2 sessions; monthly gains remain strong at 29%; add or avoid?

Shares of PC Jeweller Ltd continued to decline for the second consecutive session on Monday. The stock tumbled 7.61 per cent to close at Rs 15.55 today, extending its two-day loss to 9.95 per cent. Despite the sharp recent decline, it remains up 29.05 per cent over the past month.

Earlier in July, the board of a Delhi-based jeweller approved a plan to raise Rs 500 crore in equity from its promoter and Capital Ventures Pvt Ltd. The funds will be used to prepay existing loans, with the company aiming to become debt-free by the end of the current fiscal year.

In the June 2025 quarter (Q1 FY26), the jewellery firm reported a strong operational performance, with standalone revenue surging nearly 80 per cent year-on-year (YoY), driven by robust wedding and festive season demand. Despite volatility in gold prices, the company capitalised on customer trust and brand goodwill to deliver impressive growth.

However, some technical analysts remain cautious on the stock's near-term prospects. One analyst advised against initiating fresh positions at current levels, citing a bearish short-term outlook.

According to Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, PC Jeweller has experienced a phase of profit booking following a significant rally observed in early July. "The stock is supported by the 200-day simple moving average (SMA), which is positioned in the Rs 14.50-14 range. Conversely, immediate resistance is identified in the Rs 18-19 zone," Krishan added.

Drumil Vithlani, Technical Research Analyst at Bonanza, noted that PC Jeweller, after a gap-down opening, has formed a strong bearish candle, suggesting a shift to a negative trend. "Given the breakdown and absence of immediate support, any potential rebound is likely to face selling pressure. Investors holding positions may consider trimming or exiting on further weakness. Fresh buying is discouraged at current levels; only a strong reversal with significant volume reclaiming the Rs 17-plus mark would invalidate the bearish setup," Vithlani also said.

As of June 2025, BSE data showed that promoters held a 40.08 per cent stake in the company, reflecting an increase of 0.28 per cent from April 29 this year.