PC Jeweller share price: Multibagger stock jumps 36% in 1 week, up 4% today - What's behind the surge?

PC Jeweller shares returned to the green on Wednesday after the jewellery retailer announced that it had cleared its outstanding debt with another consortium bank. The latest repayment takes the company one step closer to its stated goal of becoming debt-free by the end of the current month.

PC Jeweller shares climbed 4% to ₹14.07 apiece during Wednesday morning trading. The recovery followed Tuesday's profit booking, which had brought an end to the stock's three-day winning streak. Despite that one-day reversal, the shares remain up more than 36% over the past week.

The development comes as PC Jeweller has now settled all outstanding dues with 10 of the 14 consortium banks. The progress on debt repayment has emerged as a key trigger for investor interest in the stock, which has delivered strong gains over the past week.

PC Jeweller Stock Price Trend

PC Jeweller shares opened Wednesday's session at ₹13.53 before advancing as much as 4% to reach a day's high of ₹14.07.

The jewellery stock has maintained strong momentum over the medium term. PC Jeweller shares have surged 42% over the past three months, while the gain over the last six months stands at 58%. The one-year performance, however, remains negative, with the stock down 4% during the period.

The longer-term picture is considerably stronger. PC Jeweller has delivered multibagger returns of 439%, highlighting the significant appreciation in the stock over the longer term.

Technical Outlook

Sachin Gupta, VP – Technical Research at Choice Broking believes that PCJEWELLER has given a strong bullish breakout from an ascending channel pattern, supported by good volume expansion, indicating strong buying interest. The stock is trading above all key moving averages, confirming a positive trend for short-term. RSI at 75.08 reflects strong bullish momentum, although it is in the overbought zone, which may lead to some short-term volatility.

"The immediate support is placed at ₹13.00, followed by ₹12.50, and holding these levels would keep the bullish structure intact. On the upside, ₹14.50– ₹15.00 is the key resistance zone. A sustained breakout above ₹15 could trigger further upward momentum. Overall, the technical setup remains bullish, supported by the ascending channel breakout, volume expansion, strong moving-average structure, and positive momentum. Traders can maintain a bullish bias while monitoring ₹13 as the immediate support level," he added.

Why Has PC Jeweller Stock Been Rising?

The company's progress towards eliminating its debt has become one of the major factors behind the recent buying interest in PC Jeweller shares.

In its latest exchange filing released on Tuesday, the company said it had successfully repaid all outstanding debt to another bank, taking the total number of consortium banks whose dues have been cleared to 10 out of 14. PC Jeweller said all repayments have been completed ahead of their scheduled due dates.

"In line with its objective of achieving a debt-free status in the current month itself, the Company has successfully cleared and repaid all its outstanding debt under the terms of Settlement Agreement dated 30 September 2024 with respect to 1 more bank. With this successful clearance of debt, the Company has now repaid all the outstanding debt of 10 out of the 14 consortium banks with all repayments completed ahead of scheduled due dates," it said in an exchange filing.

The company has also made substantial progress with the remaining lenders. PC Jeweller said it has discharged more than 96% of the outstanding debt of the remaining 4 banks.

It added that it remains firmly on track to repay the remaining less than 4% of the outstanding debt owed to these four banks and achieve debt-free status in the current month itself. According to the company, this would materially strengthen its balance sheet and financial position.

The debt resolution stems from a settlement agreement signed in September 2024 between PC Jeweller and a 14-bank consortium led by State Bank of India (SBI). The one-time settlement was aimed at resolving a stressed loan book that stood at nearly ₹4,100 crore as of March 2024.

The consortium also 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.

PC Jeweller Q1 Results

The company's recent financial performance has provided another positive factor for investors. PC Jeweller reported a consolidated net profit of ₹222 crore in Q1 FY27 in August, representing a 37% year-on-year (YoY) increase from ₹153 crore in the corresponding period of the previous year.

Revenue from operations also recorded healthy growth. It increased 21% YoY to ₹877 crore in the April-June quarter of the ongoing financial year, compared with ₹725 crore in the year-ago period.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.