PC Jeweller Shares Rise After Strong Q2 Results and Debt Relief

PC Jeweller shares rose nearly 5% on Wednesday, 21 October, extending a strong rally that has seen the stock gain about 40% over the past two weeks. The broader Indian stock market showed a positive trend as the jewellery retailer drew heavy buying interest. Market data from the BSE shows the stock has jumped 27.44% in one week, 40.23% in two weeks, and 44.18% over a month. Over longer periods, shares have gained 83.30% in three months, 92.08% in six months, and 98.07% year-to-date.

Bulk Deal and Finances

Investor interest grew after a bulk deal on 16 October where investor Aditya Kumar Halwasiya, who is associated with Cupid Ltd, bought 5.10 crore shares of PC Jeweller. The purchase was worth about 73.59 crore rupees at an average price of 14.43 rupees per share. This transaction happened during a wider financial turnaround for the company. PC Jeweller reported a 28% year-on-year increase in consolidated revenue for the July-September quarter due to healthy consumer demand. The company also collected 142 crore rupees in remittances from old export debtors during the same period. In September, the firm cleared its dues to all 14 consortium banks. This made the company debt-free after clearing borrowings of around 3,000 crore rupees through a one-time settlement that started in September 2024.

Analyst Views

Rajesh Bhosale, a technical analyst at My Advisor Alpha, pointed out that the stock saw a sharp upmove in three trading sessions. He advised against buying new long positions right now because the stock is in overbought territory. He suggested a buy-on-dips strategy with support near 17 rupees and resistance at 20 rupees. Hitesh Tailor, a technical research analyst at Choice Broking, noted that the stock broke out from a range near 14.30 rupees and moved close to 18.46 rupees. Tailor stated that the weekly Relative Strength Index crossed 76, which points to overbought conditions and possible profit-booking. He placed immediate support at 17 rupees and stronger support at 14.30 rupees, adding that a weekly close above 19.65 rupees is needed for the next leg up.

Context

Stock market rallies driven by sudden surges in buying momentum often encounter resistance levels when technical indicators like the Relative Strength Index enter overbought zones. Companies undergoing major financial restructuring, such as clearing large bank debts and reporting revenue growth, frequently attract heightened investor attention and trading volume.