Shares of PC Jeweller Ltd. saw a significant surge on Thursday, extending their gains for the second consecutive session. The penny stock climbed an impressive 13.38 percent, reaching a day high of Rs 10.93, driven by positive financial announcements from the New Delhi-based jewellery retailer.
Debt Repayment Fuels Rally
The primary catalyst for the strong upmove was the company's disclosure to exchanges that it has successfully cleared and repaid all outstanding debt under the terms of a Settlement Agreement dated September 30, 2024. This repayment pertains to two out of the 14 consortium banks.
PC Jeweller emphasized that this strategic step aligns with its overarching objective of achieving a debt-free status within the current financial quarter. This move is expected to significantly bolster its financial position in the coming periods.
Strong Q1 Performance and Reduced Debt
Earlier, the company had reported a robust operational performance for the June quarter (Q1 FY27). Consolidated revenue for the quarter rose approximately 21 percent year-on-year. Furthermore, the company stated that its overall outstanding debt had been reduced by more than 90 percent, indicating a strong trajectory towards financial stability.
While the exchange filing confirmed the successful repayment, it did not disclose the absolute consolidated revenue for Q1 FY27 or the precise outstanding debt amount remaining after the latest repayment.
Technical and Financial Snapshot
From a technical perspective, PC Jeweller's stock is currently trading above its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs), signaling a positive momentum. The 14-day relative strength index (RSI) stood at 69.84, nearing the overbought threshold of 70.
According to Trendlyne data, the stock holds a standalone/consolidated price-to-earnings (P/E) ratio of 14.92/14.80 and a price-to-book (P/B) value of 3.11. Earnings per share (EPS) were reported at 0.73/0.74, with a return on equity (RoE) of 20.94. The stock's one-year beta of 1.32 suggests relatively high volatility.