PC Jeweller shares soar 26% in just two sessions. Here’s what’s triggering the sharp surge
The transaction price was Rs 14.43 per share, taking the total value of the investment to Rs 73.60 crore, NSE block deal data showed. Aditya Halwasiya, chairman and managing director of Cupid Ltd, is a third-generation entrepreneur who emerged as India’s fastest wealth creator by percentage growth, according to the M3M Hurun India Rich List 2026.
Meanwhile, PC Jeweller announced last month that it had repaid its outstanding dues to all 14 consortium banks, achieving debt-free status ahead of schedule. The New Delhi-based jewellery maker had previously carried debt of around Rs 3,000 crore and opted for a one-time settlement (OTS) of its bank dues in September 2024.
PC Jeweller said it had completed all repayments before their scheduled due dates, adding that the debt-free status would materially strengthen its balance sheet and financial position.
The settlement agreement, signed in September 2024, involved a 14-bank consortium led by State Bank of India (SBI) and sought to resolve a stressed loan book that stood at nearly Rs 4,100 crore as of March 2024. Other consortium members included Union Bank, Punjab National Bank (PNB), Axis Bank, IndusInd Bank, Bank of India, IDBI Bank, Karur Vysya Bank, Kotak Mahindra Bank, Indian Overseas Bank, Canara Bank, Indian Bank, Bank of Baroda and IDFC First Bank.
Should you buy jewellery stocks ahead of the festive season?
Analysts expect demand to remain healthy in the second half of FY27, supported by the festive and wedding seasons.
“B2B jewellers are expected to continue delivering strong growth, broadly in line with the healthy B2C jewellery demand trend. Growth is likely to be driven by (1) ongoing capacity expansion, (2) expansion of the product portfolio beyond core categories, including bridal and studded jewellery, and (3) market expansion through new customer additions and deeper penetration across organised jewellery retailers,” Preeyam Tolia, Research Analyst at Choice Institutional Equities, said.Tolia added that the benefit of low-cost gold inventory is largely over, and B2B jewellers are likely to report normalised margins going forward. “We expect demand momentum to remain healthy in H2FY27, supported by the festive and wedding season.”
Tanvi Kanchan of Anand Rathi shares a similar view, arguing that the moderation in quarterly demand largely reflects the shift in the festive calendar rather than a deterioration in consumer appetite. “Demand is healthy; the festive calendar has simply moved. Navratri began on 11th October this year, against late September last year, and Dhanteras and Diwali fall on 6th and 8th November. Even without Navratri, Q2 numbers held up.
“Consumers have adjusted to the higher import duty and elevated gold prices rather than walked away. They are trading in old gold and shifting to studded jewellery; organised players with scale and strong exchange programmes are taking share.”
Within its coverage universe, Choice expects Shanti Gold’s revenue to grow 73% year-on-year, driven by volume growth of 25-30%, new customer additions, manufacturing capacity expansion, higher gold prices and sustained volume growth. EBITDA is expected to rise 42% year-on-year, while the EBITDA margin is projected to decline by 155 basis points to 7%, reflecting the fading benefit of low-cost gold inventory and margin normalisation.
For Shrinagar House of Mangalsutra, Choice expects revenue to grow 52% year-on-year, supported by broadly resilient demand and continued network expansion by B2C jewellers, leading to market share gains. Adjusted EBITDA is expected to increase 51% year-on-year, while the adjusted EBITDA margin is projected to decline marginally by 6 basis points year-on-year to 7%.
Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
