PC Jeweller Ltd (PCJEWELLER) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Thangamayil Jew.

Sky Gold & Diam.

P N Gadgil Jewe.

Goldiam Intl.

Ethos Ltd

Vaibhav Global

Rajesh Exports

Kalyan Jewellers

Senco Gold

PC Jeweller

Bluestone Jewel

Why is PC Jeweller Ltd ?

Weak Long Term Fundamental Strength with a -1.24% CAGR growth in Net Sales over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 29.78 times
The company has been able to generate a Return on Equity (avg) of 2.00% signifying low profitability per unit of shareholders funds

Despite the size of the company, domestic mutual funds hold only 0.18% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Below par performance in long term as well as near term

Along with generating -34.07% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is PC Jeweller for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

PC Jeweller

-34.07%

-0.62

54.98%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.24%

EBIT Growth (5y)

24.30%

EBIT to Interest (avg)

1.07

Debt to EBITDA (avg)

3.87

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

0.27

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

14.69%

ROCE (avg)

2.03%

ROE (avg)

2.00%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.12

EV to EBIT

17.59

EV to EBITDA

16.97

EV to Capital Employed

1.10

EV to Sales

3.30

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

6.23%

ROE (Latest)

8.49%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

29What is working for the Company

ROCE(HY)

Highest at 8.38%

DEBT-EQUITY RATIO(HY)

Lowest at 0.22 times

NET SALES(Q)

At Rs 825.25 cr has Grown at 28.5% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 177.83 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 21.55%

PBT LESS OI(Q)

Highest at Rs 136.40 cr.

PAT(Q)

Highest at Rs 209.54 cr.

-8What is not working for the Company

INTEREST(9M)

At Rs 122.67 cr has Grown at 1,775.69%

NON-OPERATING INCOME(Q)

is 33.81 % of Profit Before Tax (PBT

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Here's what is working for PC Jeweller

Net Sales - Quarterly

Highest at Rs 825.25 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 136.40 cr has Grown at 51.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 89.97 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 209.54 cr has Grown at 43.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 145.89 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 825.25 cr has Grown at 28.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 642.09 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 177.83 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 21.55%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 136.40 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 209.54 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.22 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for PC Jeweller

Interest - Latest six months

At Rs 77.92 cr has Grown at 62.77%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 33.81 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT