PC Jeweller shares plunge 7%; analysts divided on outlook

Shares of PC Jeweller Ltd slumped on Friday, pausing their two-day upward movement. The stock dived 7.42 per cent to close at Rs 17.35. Despite today’s pullback, it has still gained 36.94 per cent over the past month.

Bourses BSE and NSE have put the securities of PC Jeweller under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

The Board of a Delhi-based jeweller has approved a plan to raise Rs 500 crore in equity from its promoter and Capital Ventures Pvt Ltd to prepay existing loans, aiming to become debt-free by the end of the current fiscal year.

In a regulatory filing, the company announced that its board has approved a fundraise of up to Rs 500 crore through preferential allotment on a private placement basis.

As part of the plan, the board approved the issuance of up to 9.72 crore fully convertible warrants to promoter Balram Garg at an issue price of Rs 18 per warrant. These warrants will be convertible into an equivalent number of fully paid-up equity shares, with Garg committing to infusing up to Rs 175 crore.

Additionally, the board approved the allotment of up to 18.05 crore equity shares at Rs 18 per share to an entity under the ‘Non-Promoter, Public Category,’ also through preferential allotment, raising up to Rs 325 crore.

A few analysts held mixed views on the stock. While one recommended exiting due to technical weakness, another anticipated further upside beyond Rs 20 and advised trailing profits with a stop loss.

Ravi Singh, Senior Vice-President of Retail Research at Religare Broking, said PC Jeweller appears technically weak and could decline further towards the Rs 15 mark, with immediate resistance at Rs 20. He advised investors to consider exiting at current levels.

Meanwhile, Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted that the stock recently surged to a 52-week high, supported by strong volumes. He stated that a sustained move beyond Rs 20 could trigger further gains, while the Rs 17.50–16.50 zone may offer interim support, with a stronger base at Rs 14.30. He recommended trailing profits with a strict stop loss as long as the positive momentum continues.

As of April 29, 2025, promoters held a 39.80 per cent stake in the company.