PC Jeweller share price shoots up, doubles investor wealth in just 3 sessions; company prepones buyback
PC Jeweller share price extended gains for the third straight session, rallying over 37 per cent after the jewellery firm preponed the date for buyback announcement. The stock advanced as much as 37.66 per cent to Rs 240.30 on the BSE. Following today's strong uptrend, the stock has gone up by over 100 oer cent from its 52-week low touched last week on May 3, 2018.
"The Board of Directors of the company will meet on Thursday, May 10, 2018, inter-alia, to consider the proposal for buy back of fully paid-up equity shares of the Company," said PC Jeweller in a filing to BSE.
"However, the other items of the Board meeting to be held on May 25, 2018 will remain the same as per our earlier intimation," it added.
Rating agency CRISIL recently stated that it is keeping a close watch on PC Jeweller share price and the details of its share buyback plans. CRISIL will also closely monitor PCJ's working capital and liquidity position for any sharp fluctuations.
For now, the rating agency has put the company on Watch Negative list.
"We have placed long-term bank facilities of PC Jeweller on rating watch with negative implications following a substantial decline in share price, which in turn drastically reduces the company’s market capitalisation and may impact its financial flexibility," Crisil said in a report.
Brokerage Motilal Oswal Securities expects the company's revenues to grow by 15 per cent YoY in Q4 FY18 to Rs 2480 crore, led by strong SSSG in the domestic business. Net profit is expected to grow by 49.2 per cent to Rs 160 crore. The brokerage, however, said the store additions are likely to be lower this quarter than earlier expectations.
MOSL has a buy rating on the stock with a target price of Rs 520, the brokerage said in a March 2018 report.
The company's March quarter earnings will be released on May 25, 2018.