FIIs Bought 34,91,555 Shares & 10:1 Stock Split: LIC-Backed Multibagger Stock Hits Upper Circuit As Company Reports A Turnaround Net Profit In Q2FY25 & H1FY25 Results

FIIs Bought 34,91,555 Shares & 10:1 Stock Split: LIC-Backed Multibagger Stock Hits Upper Circuit As Company Reports A Turnaround Net Profit In Q2FY25 & H1FY25 Results

Kiran Shroff

The stock gave multibagger returns of 570 per cent from its 52-week low of Rs 27.66 per share.

Today, shares of PC Jeweller Ltd hit a 5 per cent upper circuit to Rs 185.25 per share from its previous closing of Rs 176.45. The stock’s 52-week high is Rs 186.80 per share and its 52-week low is Rs 27.66 per share.  

PC Jeweller Ltd is an Indian company that designs, manufactures, sells and trades gold, platinum, diamond and silver jewellery. They operate across India with multiple brands including Azva, Swarn Dharohar and LoveGold and even created commemorative medallions for the Cricket World Cup.

Quarterly ResultsThe net sales increased by 12.4 per cent to Rs 504.97 crore in Q2FY25 compared to Q2FY24. The company reported a turnaround net profit of Rs 178.88 crore in Q2FY25 compared to a net loss of Rs 138.13 crore in Q2FY24: increasing 230 per cent.

Half-Yearly Results: The net sales increased by 75.3 per cent to Rs 906.12 crore in H1FY25 compared to H1FY24. The company reported a turnaround net profit of Rs 334.94 crore in H1FY25 compared to a net loss of Rs 309.75 crore in H1FY24: increasing 208 per cent.

PC Jeweller Limited has announced plans to stock split each of its existing 1 equity shares having a face value of Rs 10 each into 10 smaller shares having a face value of Re 1. The record date for the stock split is not yet fixed.

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The company achieved a significant milestone during the quarter by securing the approval of its Offer for Settlement (OTS) from all 14 consortium banks. This led to the execution of a Settlement Agreement on September 30, 2024, resulting in partial payment of the cash consideration to the lenders. A substantial portion of this payment was raised through the subscription of Fully Convertible Warrants by the Promoter Group entities. As part of the settlement, both the company and the lenders withdrew their respective legal proceedings. The company's preferential issue of fully convertible warrants, totalling Rs 2702.11 crore, received strong investor support and was completed on October 11, 2024.

These positive developments, including the approval of the OTS, withdrawal of litigations, and investor response, have enabled the company to refocus on business development, brand enhancement and marketing initiatives. The company's strong foundation, including its extensive network of showrooms, manufacturing capabilities, skilled staff, and customer-centric policies, remains intact. By revitalizing its business operations, the company has witnessed increased operational levels, revenue and customer footfalls.

The company has a market cap of over Rs 8,400 crore. As of September 2024, Life Insurance Corporation of India (LIC) owns a 1.45 per cent stake in the company and FIIs bought 34,91,555 shares and increased their stake to 3.31 per cent compared to 2.57 per cent in June 2024. The stock gave multibagger returns of 570 per cent from its 52-week low of Rs 27.66 per share. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

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