🧵 At a Glance
PC Jeweller is trying to pull off one of the greatest “dead stock comebacks” in recent memory. From losing ₹629 Cr in FY24 to clocking ₹578 Cr net profit in FY25, the stock is now up 227% in 1 year and has become a retail crowd-favourite again. But under the glitter, is it real gold or polished brass?
1️⃣ WTF Do They Even Do?
- B2C and B2B jeweller selling gold, diamond, silver items
- Domestic retail outlets + B2B exports (mainly via Dubai firms)
- In-house design team and “wedding collection” lines like Dashavatar, Amour, Bandhan, etc.
- Once considered the next Titan… until 2018 happened.
2️⃣ The Resurrection Numbers (FY25 vs FY24)
| Metric | FY24 | FY25 | YoY Change |
|---|---|---|---|
| Revenue | ₹604 Cr | ₹2,245 Cr | 🔼 +271% |
| EBITDA | -₹170 Cr | ₹395 Cr | 💥 Turnaround |
| Net Profit | -₹629 Cr | ₹578 Cr | 🚀 Turnaround |
| OPM (%) | -28% | 18% | 🔼 +4600 bps |
| ROE | -2.18% (3Y avg) | 13% (FY25) | ✅ Positive |
| Market Cap | ₹12,500 Cr | — | 📈 Surged |
3️⃣ Valuation — Cheap, or Cheap Thrill?
- P/E: 21.6 (vs Titan’s 97, Kalyan’s 84)
- Price/Book: 1.96x — not crazy
- FV Range (based on 15–20x FY26E EPS of ₹1.2–1.5):
- 🧮 Fair Value Range = ₹18 – ₹30
- Current Price ₹19.1 → fair, but the story matters more than the math here
4️⃣ What’s Cooking? (July 2025 Updates)
- Q1FY26: Revenue up 80% QoQ, Debt reduced 7.5%
- Converted 3.08 Cr warrants into equity @ ₹4.21 (🚨 dilution alert)
- SEBI/credit rating issues mostly resolved
- Retail sentiment extremely bullish — stock on every Telegram group
5️⃣ Debt & Balance Sheet: From Horror Show to Khatron Ke Khiladi
| Year | Total Debt | Networth | D/E Ratio |
|---|---|---|---|
| FY23 | ₹3,736 Cr | ₹3,690 Cr | ~1.01x |
| FY25 | ₹2,151 Cr | ₹6,193 Cr | ~0.35x ✅ |
- Massive debt cut, equity base up via warrant conversion
- Working capital cycle still insane (CCC = 1,428 days 😵)
6️⃣ Cash Flow: Still WIP
- FY25 Operating Cash Flow: -₹633 Cr (🚩)
- Net cash positive only due to financing inflows
- Not yet “self-sustaining” — cash is not king here (yet)
7️⃣ Ratios — Mixed Bag 💼
| Metric | FY25 |
|---|---|
| ROCE | 7% |
| ROE | 13% |
| Interest Coverage | ~9x |
| Inventory Days | 1,373 |
| Debtor Days | 57 ✅ |
- Inventory remains the elephant in the showroom
- ROE back in green after 4 years
8️⃣ P&L Deep-Dive — Quarterly Trend 🧠
| Quarter | Sales (₹ Cr) | Net Profit (₹ Cr) | OPM % |
|---|---|---|---|
| Q1FY25 | ₹401 | ₹156 | 13% |
| Q2FY25 | ₹505 | ₹179 | 17% |
| Q3FY25 | ₹639 | ₹148 | 18% |
| Q4FY25 | ₹699 | ₹95 | 21% |
- Revenue rebounded each quarter
- Margins gradually improved — strong recovery arc
- BUT: profits dipped in Q4 despite sales growth (👀 keep an eye)
9️⃣ Peer Comparison 👑
| Company | P/E | ROE | Sales FY25 | PAT FY25 | OPM % | Mcap (₹ Cr) |
|---|---|---|---|---|---|---|
| Titan | 97.4 | 31.8% | ₹60,456 Cr | ₹3,336 Cr | 9.4% | ₹3.25 L Cr |
| Kalyan Jewellers | 84.4 | 15.9% | ₹25,045 Cr | ₹714 Cr | 6.1% | ₹60,000 Cr |
| PC Jeweller | 21.6 | 12.7% | ₹2,245 Cr | ₹578 Cr | 18% | ₹12,500 Cr |
- Profit is catching up with peers despite MUCH lower sales
- Still tiny vs giants like Titan/Kalyan — but trades at cheaper P/E
🔁 Shareholding Shenanigans
| Category | Mar 2024 | Apr 2025 |
|---|---|---|
| Promoters | 54.53% | 39.80% 🔻 |
| FIIs | 3.31% | 4.90% 🔼 |
| DIIs | 1.47% | 9.10% 🔼 |
| Public | 40.69% | 46.19% |
- Big DII entry recently
- Promoter stake dilution = 👎 but explained by warrant conversion
🚨 Red Flags & Watchouts
- Capitalizing interest cost? Screener thinks so
- Cash flow negative despite profit
- Working capital cycle is still terrifying
- Inventory turnover remains low
- Sudden promoter stake dip
- Legacy concerns around corporate governance still not forgotten
📦 EduInvesting Verdict™
This is not your typical “multibagger” — this is a “revengebagger”.
PC Jeweller’s comeback feels like a script straight out of a Bollywood sequel. Everyone thought it was dead, but it has reinvented itself — for now.
Valuation? Reasonable.
Profit? Real.
Sustainability? Questionable.
You can cheer for the stock, but maybe not wear its jewelry to your wedding just yet. 🥴
🧮 FV Range (15x–20x FY26E EPS ₹1.2–1.5): ₹18 – ₹30
(Current Price: ₹19.1 → Lower end of range)
✍️ Written by Prashant | 📅 7 July 2025
Tags: PC Jeweller, Jewellery Stocks, Penny Stock Comeback, NSE Microcap, Gems and Jewellery, SEBI, Turnaround Stocks, EduInvesting
