This low-priced stock hits a fresh 52-week high as it witnessed one of the biggest turnarounds!
The stock has skyrocketed by a whopping 368 per cent in the last six months. As a result of this, the stock has turned into a multi-bagger!
You are probably familiar with the famous quote, ‘Diamonds are a girl’s best friend’ by Marilyn Monroe. Talking about the performance of the stocks, PC Jeweller, which is engaged in the business of manufacturing, sale & trading of gold jewellery, diamond-studded jewellery, and silver items turned out to be the best friend of investors as the stock has skyrocketed by a whopping 368 per cent in the last six months. As a result of this, the stock has turned into a multi-bagger!
The stock reported its Q2FY23 earnings recently while the company is happy to report another profitable quarter in continuation of the first quarter of this FY after reporting losses in the past nine quarters of the previous financial years. Revenue from operations surged to Rs 836 crore, up by nearly 49.55 per cent on a YoY basis (the company has not done any export sales during the current quarter). EBITDA margins stood at 23.2 per cent in Q2FY23 as against 7 per cent in Q2FY22. PAT for the quarter ended September 2022 stands at Rs 73 crore as against a loss of Rs 76 crore for the corresponding quarter ended September 2021. Interestingly, Q2 is seasonally-weak quarter as there are no marriages and includes two weeks of Pitru Paksha.
The company is concentrating fully on its domestic business and working on improving its operating performance, which is reflected in its gross margins, EBIDTA margins as well as profitability on a QoQ basis. The coming quarter is the festive quarter and the marriage season will also commence in the same and thus, the momentum in footfalls & spending experienced in Q2 is expected to continue in Q3 as well.
The company is participating in a large number of jewellery and wedding exhibitions at various locations to increase its visibility as well as customer awareness. Furthermore, from being a pure play wedding jeweller only, the company has increased the range, variety and price points of jewellery items in its showroom to cater not only to wedding jewellery but party wear and daily wear as well.
Meanwhile, the company continues to work on (i) Adding additional franchisees and is confident that it will be able to report of opening of new stores soon. (ii) Develop and introduce fresh designs and collections on a regular basis. (iii) Revamping and beautifying all its stores with new signage and branding both outside as well as inside. (iv) Starting a vigorous media campaign with regular advertisements in print as well as radio, outdoor hoardings. The company has also increased its presence in the digital marketing space.
The stock jumped over 4 per cent on Thursday and registered a fresh 52-week high on NSE.