Recent Price Movement and Market Context
On 2 December 2025, PC Jeweller’s share price touched Rs.9.57, the lowest level recorded in the past year. This represents a decline of 1.43% on the day, underperforming its sector by approximately 1.15%. Over the last four trading days, the stock has delivered a cumulative return of -5.11%, 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 downtrend.
In contrast, the broader market has shown relative resilience. The Sensex opened lower by 316.39 points and was trading at 85,316.42, down 0.38% on the day but remains within 0.99% 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 0.07% on the same day.
Long-Term Performance and Valuation Metrics
PC Jeweller’s one-year performance shows a decline of 43.73%, contrasting sharply with the Sensex’s positive return of 6.32% over the same period. The stock’s 52-week high was Rs.19.65, highlighting the extent of the recent price erosion. Over the last five years, the company’s net sales have shown a compound annual growth rate (CAGR) of -1.24%, indicating a contraction in revenue over the medium term.
The company’s financial structure reveals a high leverage position, with a Debt to EBITDA ratio of 29.78 times. This suggests a limited capacity to service debt from earnings before interest, taxes, depreciation, and amortisation. Additionally, the average Return on Equity (ROE) stands at 2.00%, reflecting modest profitability relative to shareholders’ funds.
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Shareholding and Market Interest
Despite PC Jeweller’s sizeable market presence, domestic mutual funds hold a relatively small stake of 0.18%. Given that mutual funds typically conduct detailed research on companies, this limited exposure may reflect a cautious stance towards the stock’s current valuation or business outlook.
The stock has underperformed not only in the last year but also over three years and the recent three-month period when compared with the BSE500 index, indicating a consistent lag in relative performance.
Recent Financial Results and Profitability
In the September 2025 quarter, PC Jeweller reported a net profit growth of 29.4%, marking a positive earnings trend. The company has declared positive results for six consecutive quarters, with the highest quarterly net sales recorded at Rs.825.25 crores. Profit before tax excluding other income (PBT less OI) for the quarter stood at Rs.136.40 crores, reflecting a growth of 51.6% compared to the previous four-quarter average.
The company’s Return on Capital Employed (ROCE) for the half-year period reached 8.38%, with a trailing ROCE of 6.2%. These figures suggest an efficient use of capital relative to earnings, supported by an enterprise value to capital employed ratio of 1, which is considered attractive in valuation terms.
Despite these positive earnings indicators, the stock price has not reflected this improvement, continuing to trade at a discount relative to its peers’ historical valuations.
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Profit Growth Versus Stock Performance
Over the past year, PC Jeweller’s profits have risen by an extraordinary 3909.2%, a stark contrast to the stock’s price return of -43.73%. This divergence highlights a disconnect between earnings growth and market valuation, which may be influenced by the company’s financial leverage and historical revenue trends.
The stock’s current valuation discount relative to peers may also reflect investor caution given the company’s high debt levels and modest return on equity.
Summary of Key Metrics
To summarise, PC Jeweller’s stock has reached a 52-week low of Rs.9.57 after a sustained period of price decline. The company’s financial profile shows mixed signals: while recent profit growth and ROCE figures are encouraging, long-term sales growth and debt servicing capacity remain areas of concern. The stock’s underperformance relative to the broader market and sector peers continues to be a notable feature of its recent trading history.
The broader market environment remains cautiously optimistic, with the Sensex near its 52-week high and mid-cap stocks leading gains. However, PC Jeweller’s share price trajectory suggests that it is currently facing headwinds that have yet to be fully reflected in its earnings performance.
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