FIIs bought 76,18,330 shares in Q1: LIC-backed multibagger stock under Rs 100; Company reports a turnaround net profit in Q1 & approval of OTS proposal by IDBI Bank

The stock gave multibagger returns of 280 per cent from its 52-week low of Rs 25.45 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.

PC Jeweller Limited informed that IDBI Bank Limited has approved the company's One Time Settlement (OTS) proposal submitted on August 14, 2024. The OTS terms involve a combination of cash and equity payments, along with the release of pledged securities and mortgaged properties. This disclosure complies with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

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, is a testament to this. 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.

The company's financial position has been further strengthened by positive developments on the debt front. The OTS offer submitted to a consortium of 14 banks has been accepted by 12 banks, with the remaining two under active consideration. Moreover, 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 2705.14 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.

Today, shares of PC Jeweller Ltd gained 4.60 per cent to an intraday high of Rs 96.86 per share from its previous closing of Rs 92.60. The stock’s 52-week high is Rs 99.46 while its 52-week low was Rs 25.45.

The company has a market cap of over Rs 4,4z00 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 280 per cent from its 52-week low of Rs 25.45 per share and 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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