 "PC Jeweller hits fresh high, stock soars 53% in one month")
PC Jeweller hit fresh record high of Rs 393, up 6% on BSE in noon deal, extending its last one month rally after the company posted a strong set of numbers in June quarter (Q1FY18). In past one month stock rallied 53% as compared to 2% decline in the S&P BSE Sensex.
PC Jeweller had 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.
The management believes that a growing shift towards organized retail post government initiatives such as demonetization, implementation of Goods and Service Tax (GST) etc, new product launches, and aggressive store expansion (30 new stores in FY18E, of which 15 via franchise route) is expected to drive domestic revenue growth by 30%+ during FY18E.
Analysts at Emkay Global Financial Services believe that after a challenging FY17, PC Jeweller along with the organized jewellery retail sector will deliver a robust growth and profitability going forward. Asset light route of expansion will aid in boosting overall return ratio profile of the company.
Improved mix, benefits from input tax credit on GST and operating leverage is expected to provide a fillip to operating margins, the brokerage firm said in company result update.
Meanwhile, on August 16, the rating agency CRISIL upgraded the long term rating on the bank loan facilities of PC Jeweller 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.
PC Jeweller had 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.
The management believes that a growing shift towards organized retail post government initiatives such as demonetization, implementation of Goods and Service Tax (GST) etc, new product launches, and aggressive store expansion (30 new stores in FY18E, of which 15 via franchise route) is expected to drive domestic revenue growth by 30%+ during FY18E.
Analysts at Emkay Global Financial Services believe that after a challenging FY17, PC Jeweller along with the organized jewellery retail sector will deliver a robust growth and profitability going forward. Asset light route of expansion will aid in boosting overall return ratio profile of the company.
Improved mix, benefits from input tax credit on GST and operating leverage is expected to provide a fillip to operating margins, the brokerage firm said in company result update.
Meanwhile, on August 16, the rating agency CRISIL upgraded the long term rating on the bank loan facilities of PC Jeweller 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.
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