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PC Jeweller hits record high; stock soars 46% post Q1 results

The stock hit a new high of Rs 369, up 4%, extending its over 40% surge in past 11 trading days

SI Reporter  |  Mumbai 

Jewellery, gold
Gold jewellery displayed at a shop in Delhi. Photo: Reuters

hit a new high of Rs 369, up 4%, extending its over 40% surge in past 11 trading days, after reported 27% year on year (YoY) growth in net profit at Rs 136 crore in June quarter (Q1FY18), on back of healthy operational income.

Revenues from operations grew 33% at Rs 2,119 crore on YoY basis.

Since August 1, post Q1FY18, results, the stock has rallied 46% from Rs 252 on BSE. On comparison, the S&P BSE Sensex was down 3.3% during the period.

said, the Goods & Service Tax (GST) rates are modest and almost in line with the tax rates prevailing earlier. Hence, the consumers have already adjusted to the same quickly.

The company is well poised to take full advantage of the facilities of the new tax regime. Operationally also it has made a smooth transition to the new regime successfully, it added.

On Wednesday, August 16, the rating agency CRISIL upgraded the long term rating on the bank loan facilities of to CRISIL A+/Stable from CRISIL A/Stable.

CARE Ratings is optimistic about growth in the domestic retail jewellery segment on back of favourable demographics, fading of regulatory headwinds such as demonetisation and GST implementation and shift in preference towards branded jewellery.

The rating agency expects retail jewellery segment in the country is expected to see double digit growth rates in revenue in FY18 on back of regulatory headwinds fading out and continued favourable demographics.

Margins of retail players are expected to see improvement over medium term with availability of gold metal loans and increase in share of higher margins diamond and precious stone studded jewellery.

CARE Ratings also believes the pressure on profit margins for cut & polish diamond players would continue, given the lack luster demand for global diamond jewellery. However, rough diamond trade volumes are expected to increase with growing significance of Mumbai in the global rough diamond trade.

First Published: Fri, August 18 2017. 15:01 IST