PC Jeweller’s stock surged 5% on Tuesday, hitting a new 52-week high of ₹187.07. This followed the company’s announcement of a 1:10 stock split and a plan to raise ₹646 crore. PC Jeweller will split its equity shares, turning each ₹10 share into ten ₹1 shares.
It will also issue 11.5 crore fully convertible warrants at ₹56.20 per unit. These moves aim to boost shareholder value and retail participation. PC Jeweller’s share price has risen 614% in the past 12 months.
PC Jeweller’s shares reached a multi-year high as the company said its board will consider a stock split on September 30. The stock has risen 227.02% year-to-date and 483.89% in the last 12 months. The company filed that a Board of Directors meeting on Monday, September 30, 2024, will discuss and approve changing the share capital by splitting existing ₹10 equity shares as the Board determines.
Stock split sparks significant growth
PC Jeweller’s stock jumped for the fourth straight session, hitting ₹157.39, its highest since April 18, 2019. The stock has gained nearly 10% in the four-day rise.
On Wednesday, the stock rose as much as 4.20% before partially retreating to trade 1.23% higher at ₹152.90 as of 10:18 a.m. The NSE Nifty 50 index fell 0.1%. The relative strength index was 74.38, suggesting the stock may be overbought. PC Jeweller’s shares, a small-cap stock, hit an all-time high of ₹169.69 on Friday, September 27, 2024, after rising 5%.
The stock has gained 18.83% in five sessions. This followed news that the Bank of India approved PC Jeweller’s One Time Settlement application on September 26, 2024. All fourteen consortium banks have now accepted the OTS proposal.
The company announced a stock split to be considered at the September 30, 2024 board meeting, driving its market cap to ₹7,530 crores. PC Jeweller’s multibagger stock, backed by LIC, has grown tremendously. The stock price has risen 200% in six months and 511% over the past year, with 223.4% gains from the IT sector in 2024.
The company’s shares have increased in six of the past nine months, with big gains in July (653.73%) and August (8189%), and a further 36% rise this month. The planned stock split comes amid these record highs. PC Jeweller said the Board will consider share split options by month’s end to improve turnover and reduce costs for small investors.
PC Jeweller reported a ₹156.06 crore net profit, a major turnaround from a ₹171.62 crore loss a year earlier. This profit is up 492.72% from last year. Quarterly revenue jumped 727.28% on a 946.02% rise in operating income versus eight quarters ago and a 196.29% increase from the prior year.
Q1 EPS was ₹3.35, up 190.79% year-over-year. PC Jeweller has 57 showrooms in India and designs, makes, and sells gold, platinum, diamond, and silver jewellery. Its brands include Azva, Swarn Dharohar, and LoveGold for different customers.
PC Jeweller also makes commemorative medallions for sporting events like the Cricket World Cup.
