Stock market today: PC Jeweller shares have been on an uptrend for the last one month. In this period, PC Jeweller’s share price has surged from around ₹51 to ₹98.56 apiece on the NSE, recording an over 85 per cent rise. The jewellery brand has recently witnessed a strong rally after the announcement of the repayment of outstanding debt of the consortium of 14 banks through the One-Time Settlement (OTS) system. The company recently announced that it would repay the debt of Indian Overseas Bank.
Earlier, the jewellery brand announced that it would repay the outstanding debt of Bank of Baroda and IndusInd Bank. However, stock market experts believe that the rally in this jewellery stock may continue as the company is expected to benefit from the current gold price rally and decrease in the custom duty of gold and silver.
Triggers for PC Jeweller shares
Highlighting the reason for the PC Jeweller share price rally, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “The jewellery stock has been rising after it showed its seriousness to address the outstanding debt of 14 banks. The company recently announced that it would repay the outstanding debt of the consortium of 14 banks using the OTS mechanism. It has already paid the outstanding debt of banks such as Bank of Baroda and IndusInd Bank. Recently, it has repaid the outstanding debt of Indian Overseas Bank as well. By the time the market could discount this fundamental development, the Government of India declared a decrease in customs duty from 15 per cent to 6 per cent, which is expected to boost the Indian jewellery business, including PC Jeweller.”
Asked about the outlook of PC Jeweller shares, Gorakshkar said, “This rally may further continue if the gold price rally continues. As the gold price rally is expected to continue after the US Fed rate cut buzz and escalation in the Israel-Palestine conflict, jewellery brands are expected to benefit from the buffer stock of their physical gold. This rally will give them the luxury of either offering their customers a discount to generate more business volume or applying the pricing of their jewellery based on the current gold price.”
PC Jeweller share price target
On the technical outlook of PC Jeweller shares, Sumeet Bagadia, Executive Director at Choice Broking, said, “PC Jeweller shares may become highly bullish once it gives a fresh breakout at ₹100 on a decisive basis. On breaching this ₹100 hurdle, PC Jeweller share price may touch ₹125 apiece soon. So, PC Jeweller shareholders are advised to hold the scrip, maintaining stop loss at the ₹85 per share mark. For fresh investors, PC Jeweller shares can be bought only when they breach the ₹100 hurdle. Till then, fresh entry is not advised.”
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
