LIC-Backed Multibagger Stock Hit 52-Week High As Board Is Likely To Announce Stock Split Next Week
The stock gave multibagger returns of over 500 per cent from its 52-week low of Rs 25.45 per share.
PC Jeweller Ltd informed that a meeting of the Board of Directors of the company will be held on Monday, September 30, 2024, inter-alia, to consider and approve the alteration in the share capital of the company by sub-division / stock split of existing equity shares having face value of Rs 10 each, fully paid-up, as may be determined by the Board of Directors and consequent alteration of Memorandum of Association of the Company. In the same meeting, the Board will also consider the appointment of new Directors of the Company, if any.
Earlier, the company received a refund of Rs 67.54 crore from the Income Tax Department, which stands credited to its account on September 06, 2024. So, in essence, the company received a large amount of money back from the government because it had overpaid its taxes.
Today, shares of PC Jeweller Ltd gained 4.20 per cent to Rs 157.30 per share from its previous closing of Rs 151 per share. The stock also made a new 52-week high of Rs 157.30 and its 52-week low is Rs 25.45.
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.
The company has experienced a remarkable turnaround in Q1FY25. A significant surge in domestic sales from Rs 67 crore in Q1FY24 to Rs 401 crore in Q1FY25, compared to Rs 48 crore in Q4FY24 and Rs 189 crore for the entire FY 2023-24. Profitability has also improved dramatically, with EBITDA soaring to Rs 89 crore in Q1 FY 2025 from a loss of Rs 42 crore in the same period last year. Operating profit reached Rs 49 crore in Q1FY25. Additionally, the company has successfully resolved its outstanding income tax liability of Rs 81.26 crore by adjusting it against income tax refunds, generating an interest income of Rs 34.53 crore.
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The company's financial position has been further strengthened by positive developments on the debt front. The withdrawal of the insolvency petition filed by the State Bank of India is a major victory. To support its growth and debt repayment, the company has secured shareholder approval to raise Rs 2,705.14 crore through a preferential issue of warrants. These achievements, coupled with the company's strong operational foundation, including a network of 57 showrooms across India and robust manufacturing capabilities, have enabled it to regain customer trust and confidence. With increased sales, operational efficiency, and a renewed focus on marketing, the company is poised for sustained growth in the coming quarters.
The company has a market cap of over Rs 7,200 crore. As of June 2024, Life Insurance Corporation of India (LIC) owns a 1.45 per cent stake in the company and FIIs bought 76,18,330 shares and increased their stake to 2.57 per cent compared to 0.93 per cent in March 2024. The stock gave multibagger returns of over 500 per cent from its 52-week low of Rs 25.45 per share. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.