PC Jeweller shares extend gains: Here's why the stock is rising

Shares of PC Jeweller Ltd continued their upward move on Friday, climbing another 6.07 per cent to hit a high of Rs 10.48 in early trade. The price action was accompanied by heavy trading volume, with around 1.06 crore shares last seen changing hands on BSE. The figure was higher than the two-week average volume of 43.38 lakh. Turnover on the counter came at Rs 10.94 crore, commanding a market capitalisation (m-cap) of Rs 8,644.75 crore.

Today's surge followed the New Delhi-based jewellery retailer's announcement that it delivered a strong operational performance in the June quarter (Q1 FY27), with consolidated revenue rising around 21 per cent year-on-year (YoY).

The company also said it is making progress towards its goal of becoming debt-free and expects to achieve that milestone during the current quarter.

"In line with the same, the company has successfully reduced its outstanding debt that was payable to the banks under the terms of the Joint Settlement Agreement, by another approximately 24 per cent during Q1 FY2027. With this reduction, the company has now reduced its outstanding debt by more than 90 per cent as on date, since the execution of the Settlement Agreement with banks on September 30, 2024," PC Jeweller said in the exchange filing.

The company added that repayment of the remaining outstanding debt and attaining debt-free status in the ongoing quarter would significantly strengthen its financial position in the coming periods.

The filing did not disclose the absolute consolidated revenue for Q1 FY27 or the outstanding debt amount after the latest repayment.

From a technical standpoint, the stock was trading above its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day and 150-day simple moving averages (SMAs), but remained below the 200-day simple moving average (SMA). Its 14-day relative strength index (RSI) stood at 73.38. An RSI below 30 is considered oversold, while a reading above 70 is viewed as overbought.

According to Trendlyne data, PC Jeweller has a standalone/consolidated price-to-earnings (P/E) ratio of 14.14/14.03 and a price-to-book (P/B) value of 2.95. Earnings per share (EPS) stood at 0.73/0.74, while return on equity (RoE) was 20.94. The stock's one-year beta was 1.42, indicating relatively high volatility.