Penny stock under ₹10 PC Jeweller jumps 5% despite stock market sell-off

PC Jeweller share price jumped 6% in early trade on Wednesday, 8 July, after the company announced that it had repaid all its outstanding debt under the settlement agreement with two consortium banks, marking the beginning of its journey towards becoming debt-free.

In an exchange filing, the company said it has successfully cleared and repaid all outstanding dues covered under the Settlement Agreement dated 30 September 2024, with respect to two of the 14 consortium banks. The repayment is in line with its objective of achieving debt-free status this quarter.

The company said the development marks a significant milestone in its ongoing turnaround, with further debt repayments expected as part of its broader deleveraging plan.

Q1 Business Update

PC Jeweller Ltd reported a 21% year-on-year growth in consolidated revenue for the first quarter of FY27 and said it expects to become a debt-free company during the July-September quarter.

In a regulatory filing, the jewellery retailer said its consolidated revenue rose around 21% compared with the corresponding quarter last year.

The company also said it has reduced its outstanding bank debt by more than 90% and is on track to achieve a debt-free status in the current quarter.

During the June quarter, PC Jeweller further reduced the outstanding debt payable to banks under the Joint Settlement Agreement by an additional 24%, reflecting continued progress in its deleveraging efforts.

PC Jeweller share price today

PC Jeweller share price today opened at an intraday low of ₹9.47 per share on the BSE, the stock touched an intraday high of ₹10.01 apiece.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the stock opened with a gap-up and was trading around 3.5% higher. He noted that the stock has remained highly volatile over the past few sessions, oscillating between ₹9 and ₹11.

"The lower end of the range is supported by the short-term moving average around ₹9, while the 200-day simple moving average (DSMA) near ₹11 is acting as a key resistance. Although trading volumes have picked up in recent sessions, the next decisive momentum is likely only after a breakout beyond this range," Bhosale said.

He added that a sustained move above ₹11 could trigger further upside, with the stock potentially advancing towards ₹15.

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