PC Jeweller shares tumble 10%; analysts flag short-term bearish trend

Shares of PC Jeweller plummeted sharply in Friday's trade, dropping 9.59 per cent to a low of Rs 12.16. The stock was last seen down 8.62 per cent at Rs 12.29. At this price, it has now declined 24.23 per cent year-to-date (YTD).

In a board meeting last week, the company approved a preferential allotment of 18,05,55,555 equity shares and 9,72,22,222 fully convertible warrants.

The company's promoter and managing director, Balram Garg, was allotted the warrants, which were priced at Rs 18 each. An upfront payment of 25 per cent, amounting to Rs 4.50 per warrant, is required, with the balance payable within 18 months. Each warrant can be converted into one equity share of Re 1, and the holder will be entitled to corporate benefits such as bonus or rights issues until conversion.

Separately, Capital Ventures Private Limited (CVPL), a non-promoter entity, was allotted 18.05 crore equity shares at Rs 18 apiece, raising Rs 325 crore.

Following this allotment, the company's paid-up equity capital increased from 706.81 crore shares to 724.86 crore shares. Public shareholding increased to 62.40 per cent, while promoter holding remained at 37.60 per cent.

On the earnings front, the Delhi-based jeweller posted a 4 per cent year-on-year (YoY) rise in consolidated net profit at Rs 161.93 crore for the quarter ended June 2025, compared with Rs 156.06 crore in the same period last year. Total income surged to Rs 807.88 crore, sharply higher than Rs 439.78 crore reported in the year-ago quarter, the company said in a regulatory filing.

Technical analysts indicate a negative bias, with resistance around Rs 12.50-14. A decisive break below Rs 10.46 could trigger further downside toward Rs 8.48, while short-term recovery is capped by resistance levels. The overall short-term outlook remains bearish.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "PC Jeweller has plunged sharply and is heading towards recent lows of Rs 11.50-11. On the higher side, strong resistance is placed around the 13.50-14 subzone, coinciding with a cluster of EMAs and 200 DSMAs. The counter is likely to hover within the mentioned range with a negative bias."

Kunal Kamble, Senior Technical Research Analyst at Bonanza, said, "The stock structure is suggesting a continuation of the negative trend. It is now approaching the key support at Rs 10.46, and a decisive breakdown below this level could accelerate selling pressure, opening the door for a move towards Rs 8.48, where the falling trendline support lies."

Ameya Ranadive, Chartered Market Technician, CFTe, and Senior Technical Analyst at StoxBox, said, "PC Jeweller is displaying a sharp decline after breaching the critical support level of Rs 12.74 on daily charts. This breakdown signals further downside potential, with immediate support expected between Rs 11.50 and Rs 11.00. The resistance now stands near Rs 12.50, which may cap any short-term recovery. A break below Rs 11.00 could trigger further downside. The short-term outlook remains bearish."