Why is PC Jeweller’s Share Price Falling?

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PC Jewellers: As of the recent share price of PC Jeweller Ltd, it is ₹9.50, reflecting a 0.84% decline from the last day and marking a significant decrease amid broader market fluctuations and sector underperformance. The stock has recorded a consecutive two-day fall, reflecting ongoing pressures within the Gems, Jewellery, and Watches industry. The stock has experienced a cumulative return of -5.52% over the past two days, signalling sustained downward momentum. In contrast, the broader market displayed mixed signals. The Sensex opened 122.62 points higher but later retreated by 329.68 points, trading at ₹85,360.42, which is 0.24% lower on the day. Despite this dip, the Sensex remains close to its 52-week high of ₹86,159.02, just 0.94% away, and is supported by bullish moving averages with the 50-day DMA above the 200-day DMA.

From a fundamental perspective, the company’s long-term fundamentals remain weak. Over the last five years, net sales have contracted at a compound annual growth rate (CAGR) of -1.24%, signalling stagnation or decline in core business growth. The firm’s ability to service its debt is a concern, given its high debt-to-EBITDA ratio of 29.78, which indicates potential liquidity stress. Furthermore, the average Return on Equity (ROE) stands at a modest 2.00%, reflecting low profitability relative to shareholders’ funds.   

Key Reasons Behind PC Jewellers Share Price Falling

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There are several reasons behind PC Jewellers, such as weak long-term sales growth, high leverage and debt concerns, Low profitability, Limited Institutional Investor Confidence, regulatory changes, technical weakness and Bearish sentiment.  

Below are the reasons behind the PC Jeweller Share Price Falling

• Weak Long-Term Sales: The company has experienced a negative compound annual growth rate (CAGR) in net sales over the last five years, indicating a contraction in revenue generation capabilities, which leads to the PC Jeweller share price falling in the long term. 
• High Leverage and Debt Concerns: The company has a high Debt-to-EBITDA ratio, suggesting potential strain in servicing its debt obligations. While it has made efforts to reduce debt, the high historical leverage remains a concern for investors, which is the main reason PC Jewellers share price has fallen.
• Low Profitability: The company has historically shown a low return on equity (ROE), reflecting modest profitability relative to shareholder funds compared to industry averages, which has led to the PC Jeweller share price falling. 
• Limited Institutional Investor Confidence: Domestic mutual funds hold a minimal stake in PC Jeweller, suggesting a lack of confidence among institutional investors in the company’s long-term business prospects, which has led to a decline in the PC Jeweller share price. 
• Changes in the Regulatory Systems: One of the significant causes of sharp short-term declines was when both the NSE and BSE placed PC Jeweller under the Additional Surveillance Measure (ASM) framework, which occurs when a stock shows abnormal volatility or speculative trading.
• Technical Weakness and Bearish Sentiment: The stock has been trading below all key moving averages (5-day, 20-day, 50-day, 100-day, and 200-day), reflecting persistent bearish momentum and caution among market participants, which has caused the PC Jeweller share price to fall in the long term. 

Note: For the live PC Jewellers Share Price Target, visit the univest app and check the stock fundamentals.  

PC Jewellers: Future Outlook

Rising gold prices can lead to temporary volume moderation; jewellery companies such as PC Jewellers typically benefit from higher inventory gains, which support margins. Conversely, during periods of gold price correction, higher volumes partly offset inventory losses. PC Jeweller remains the biggest laggard, losing 44% in a year, with Senco Gold a close second as its stock has crashed 43.5%. Examining the company’s financial fundamentals reveals several areas of concern, and the compound annual growth rate (CAGR) of net sales over the last five years is -1.24%, indicating a contraction in revenue. 

PC Jewellers: Performance Analysis

In contrast, the broader market has shown relative resilience. The Sensex opened 183.42 points lower but is trading at ₹85,123.56, down 0.33% for the day, and remains just 1.22% below its 52-week high of ₹86,159.02. The Sensex is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average. Mid-cap stocks have led the market gains, with the BSE Mid Cap index rising by 0.1%. Despite the company’s scale, domestic mutual funds hold only a 0.18% stake. Given their capacity for detailed research and due diligence, this limited exposure may reflect cautious positioning within institutional portfolios. Profit growth over the past year has been substantial, increasing by 3909.2%, despite the stock’s negative price performance. 

Note: For the live PC Jewellers Share Price Target, visit the univest app and check the stock fundamentals.  

How have PC Jewellers Shares Performed Recently?

PC Jewellers recent decline to a 52-week low of ₹9.34 reflects a combination of factors, including consistent long-term sales growth, limited profitability, and high leverage. The stock’s position below all major moving averages signals continued market caution. Low ability to service debt as the company has a high Debt to EBITDA ratio of 29.78 times, and the company has been able to generate a Return on Equity (avg) of 2.00% signifying low profitability per unit of shareholders’ funds, along with generating -45.54% returns in the last 1 year, the stock has also underperformed BSE500 during the previous 3 years, 1 year and 3 months.   

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PC Jewellers: Share Price Target

Analysts and brokerages forecast that by the end of 2025, PC Jeweller share price target 2025 could touch anywhere in the range of ₹15 and ₹20 per share, provided that the company has healthy growth in sales and manages margins effectively. Some optimistic forecast project at ₹22-₹25 if the demand during the wedding and export divisions outperform.  

PC Jewellers: Analysts’ Rating

• The average 12-month price target is ₹20.00, and the consensus rating is Hold (mix of Buy, Hold, & Sell).
• The analyst’s target range is observed between a high of ₹20.00 and a low of ₹25.00. 
• According to some analysts, concerns remain about a ‘Reduce’ call at ₹30.78.
• The analyst’s sentiment is mixed; there have been recent bullish calls (ICICI, JM), but also cautious ones (Motilal Oswal, Nuvama). 

Note: For the live PC Jewellers Share Price Target, visit the univest app and check the stock fundamentals.  

What is the Right Time to Buy PC Jewellers Shares?

According to analysts, PC Jewellers share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in PC Jeweller. There are some factors to consider before investing in PC Jeweller Company shares.

• Strong Fundamentals: Investors should review PC Jeweller Company’s fundamentals before investing. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it.    
• Financing Partnerships: Financing partnerships bridge the gap between customers and financial institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers.   
• Growth in the Jewellery Sector: The company is well-positioned in the jewellery sector to deliver benefits to PC Jeweller. This dominant sector increases demand and prices for PC Jeweller.
• Highly Volatile: Prices are highly volatile, so price changes significantly impact PC Jeweller Company’s stock price. Investors must review the market structure before investing in PC Jewellers shares. 

Conclusion 

PC Jeweller sits alongside biggies like Titan and Kalyan Jewellers. While Titan targets the premium segment, PC Jeweller focuses on affordable luxury for the middle and upper-middle classes, with a special emphasis on the wedding and festival markets. Their “Every Day Jewels” line, competitive pricing, and franchise network make them a regular pick among stocks to watch during festive and wedding season rallies. Quarterly sales updates, especially during the festival and wedding season, new launches or changes impacting the gold/ duty structure, and the company’s debt management and any ratings upgrades, and if you are considering pc jewellers’ share price for either a short swing or a long-term wedding season. 

FAQs

What are the key reasons behind the PC Jewellers share price fall?

Ans. There are several reasons behind PC Jewellers, such as weak long-term sales growth, high leverage and debt concerns, Low profitability, Limited Institutional Investor Confidence, regulatory changes, technical weakness and Bearish sentiment.  The company has historically shown a low return on equity (ROE), reflecting modest profitability relative to shareholder funds compared to industry averages, which has led to the PC Jeweller share price falling.

What is the PC Jewellers share price target?

Ans. Analysts and brokerages forecast that by the end of 2025, PC Jeweller share price target 2025 could touch anywhere in the range of ₹15 and ₹20 per share, provided that the company has healthy growth in sales and manages margins effectively. Some optimistic forecast project at ₹22-₹25 if the demand during the wedding and export divisions outperform. The analyst’s sentiment is mixed; there have been recent bullish calls (ICICI, JM), but also cautious ones (Motilal Oswal, Nuvama). 

What are the factors that affect the PC Jewellers share?

Ans. According to analysts, PC Jewellers share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in PC Jeweller. There are some factors to consider before investing in PC Jeweller Company shares. Investors should review PC Jeweller Company’s fundamentals before investing. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it. 

Should investors buy PC Jewellers shares or not?

Ans.  Rising gold prices can lead to temporary volume moderation; jewellery companies such as PC Jewellers typically benefit from higher inventory gains, which support margins. Conversely, during periods of gold price correction, higher volumes partly offset inventory losses. PC Jewellers recent decline to a 52-week low of ₹9.34 reflects a combination of factors, including consistent long-term sales growth, limited profitability, and high leverage. The stock’s position below all major moving averages signals continued market caution. 

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