Jewellery Stock: Update on settlement with consortium lenders - Should you buy before Diwali?

Jewellery Stock : Delhi-based PC Jeweller today informed that it is now in possession of all its inventory and none of its inventory is now in the custody of Debts Recovery Appellate Tribunal (DRAT), Delhi or any other authority.

The update was issued by the company following the completion of handover of keys and inventory of the company’s showrooms/ premises located at South Extension (Delhi) and Kingsway Camp (Delhi) on October 10.

Last week, the DRAT, Kolkata, which holds additional charge of DRAT, Delhi, had accepted joint application filed by the company and consortium lenders. and issued directions for handover of keys and inventory to the company of all those showrooms / premises which were in the custody of DRAT, Delhi.

Meanwhile, PC Jeweller shares on Monday traded lower amid a sluggish trend in the domestic market. The jewellery stock opened in the green at Rs 12.89 and made a high of Rs 12.92 -- up 1 per cent on NSE.

The counter, however, surrendered the gains and traded at Rs 12.50 around 2:30 PM -- down 2.65 per cent. More than 5 crore shares of the Delhi-based company changed hands around the same time.

PC Jeweller Stock: BUY or SELL?

Speaking to ET NOW Swadesh, Harish Jujarey, AVP (Head - Technical Equity Research), Prithvi Finmart, said that PC Jeweller shares have formed a strong base around Rs 12. PC Jeweller has bounced back from Rs 12 support.

"PC Jeweller is currently showing volatile moves. If someone is already PC Jeweller on portfolio, then my suggestion is to main a strict stop loss at Rs 12," the market expert said. On the higher side, PC Jeweller is facing resistance at Rs 15, followed by 15.60.

"Overall view on PC Jeweller is that the stock may remain in a consolidation for now. My recommendation on PC Jeweller is to trade with a strict stop loss and exit at higher levels," the market expert added.

PC Jeweller is a constituent of BSE Smallcap index and command a market cap of Rs 8,219 crore. According to exchange data, its shares have declined 18 per cent in the last one year. The stock has, however, skyrocketed more than 300 per cent in two years.

Back in December 2024, the company had split the face value of its shares in the ratio of 10:1 -- meaning each share of Rs 10 face value was split into 10 shares of Re 1 FV each.

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(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)

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