PC Jeweller shares extend gains, jump nearly 14% today; here's why

Shares of PC Jeweller Ltd extended gains for the second straight session on Thursday. The penny stock surged 13.59 per cent to hit a day high of Rs 10.95.

The recent strong upmove came after the New Delhi-based jewellery retailer informed exchanges that it has successfully cleared and repaid all its outstanding debt under the terms of the Settlement Agreement dated September 30, 2024, with respect to two out of the 14 consortium banks.

The step PC Jeweller stated is in line with its objective of achieving debt-free status in the current quarter itself.

Earlier, the company noted that it reported a strong operational performance for the June quarter (Q1 FY27), with consolidated revenue rising around 21 per cent year-on-year (YoY).

It also said that its outstanding debt has been reduced by more than 90 per cent.

The company further stated 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 exchange filing, however, 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, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) stood at 69.84. 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 14.92/14.80 and a price-to-book (P/B) value of 3.11. 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 1.32, indicating relatively high volatility.