Recent Price Movement and Market Context
On 26 Dec 2025, PC Jeweller's stock price touched Rs.9.34, the lowest level recorded in the past year. This represents a decline of 1.16% on the day, underperforming its sector by 2.18%. Over the last four trading days, the stock has registered a cumulative return of -5.92%, indicating sustained selling pressure. The share price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend.
In contrast, the broader market has shown relative resilience. The Sensex opened 183.42 points lower but is trading at 85,123.56, down 0.33% for the day and remains just 1.22% shy of its 52-week high of 86,159.02. The Sensex is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average. Mid-cap stocks have led the market gains, with the BSE Mid Cap index rising by 0.1% today.
PC Jeweller's 52-week high stands at Rs.19.65, highlighting the extent of the stock's decline over the past year.
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Long-Term Performance and Financial Metrics
Over the past year, PC Jeweller's stock has recorded a return of -45.42%, significantly lagging behind the Sensex's 8.47% gain during the same period. The stock has also underperformed the BSE500 index over the last three years, one year, and three months, indicating a prolonged period of subdued market performance.
Examining the company's financial fundamentals reveals several areas of concern. The compound annual growth rate (CAGR) of net sales over the last five years stands at -1.24%, reflecting a contraction in revenue generation. Profitability metrics also indicate limited returns, with an average return on equity (ROE) of 2.00%, suggesting modest profitability relative to shareholders' funds.
Debt servicing capacity appears constrained, as evidenced by a high Debt to EBITDA ratio of 29.78 times. This elevated leverage ratio points to significant financial obligations relative to earnings before interest, taxes, depreciation, and amortisation.
Despite the company's scale, domestic mutual funds hold a minimal stake of 0.18%. Given their capacity for detailed research and due diligence, this limited exposure may reflect cautious positioning within institutional portfolios.
Recent Quarterly and Half-Yearly Financial Highlights
In the September 2025 quarter, PC Jeweller reported net sales of Rs.825.25 crores, the highest quarterly figure recorded by the company. Net profit growth was notable at 29.4%, contributing to a positive earnings report for the period. Profit before tax excluding other income (PBT less OI) reached Rs.136.40 crores, representing a 51.6% increase compared to the previous four-quarter average.
The half-yearly return on capital employed (ROCE) was recorded at 8.38%, the highest level in recent periods, while the overall ROCE stood at 6.2%. The enterprise value to capital employed ratio is approximately 1, indicating an attractive valuation relative to the company's capital base.
Profit growth over the past year has been substantial, with an increase of 3909.2%, despite the stock's negative price performance. This divergence between profit growth and share price movement highlights a complex market dynamic.
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Sector and Peer Comparison
Within the gems, jewellery and watches sector, PC Jeweller's valuation metrics suggest it is trading at a discount compared to its peers' historical averages. However, the company's financial leverage and subdued sales growth contrast with some competitors that have demonstrated more robust fundamentals.
The sector itself has experienced mixed performance, with mid-cap stocks showing some leadership in the broader market rally. PC Jeweller's relative underperformance against sector benchmarks and indices underscores the challenges it faces in regaining investor confidence.
Summary of Key Concerns and Market Position
PC Jeweller's recent decline to a 52-week low of Rs.9.34 reflects a combination of factors including subdued long-term sales growth, limited profitability, and high leverage. The stock's position below all major moving averages signals continued market caution. While recent quarterly results show some improvement in profitability and sales, these have yet to translate into sustained positive price momentum.
The limited institutional holding by domestic mutual funds further highlights a cautious stance among key market participants. Meanwhile, the broader market and sector indices have maintained relative strength, emphasising the stock's divergence from prevailing trends.
Investors and market observers will continue to monitor PC Jeweller's financial performance and market behaviour as it navigates these challenges within the competitive gems and jewellery industry.
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