PC Jeweller share price surges 6% ahead of buyback announcement
PC Jeweller share price has been on a rollercoaster ride since IT firm Vakrangee bought roughly half a percent stake in the company on January 25, 2018. Reportedly, Vakrangee is going through a Sebi probe on alleged manipulation of its stock price.
PC Jeweller share price rallied over 6 per cent ahead of company's board meeting scheduled for later today wherein the Board of Directors are expected to consider the proposal for buyback of fully paid-up equity shares of the company. PC Jeweller buyback is expected to be fixed at Rs 300 per share. PC Jeweller share price rose as much as 6.11 per cent to Rs to Rs 221.35 on the BSE. At 12:10 pm, the stock was trading at 215.80, up 3.45 per cent.
PC Jeweller stock has been on a rollercoaster ride since IT firm Vakrangee bought roughly half a percent stake in the company on January 25, 2018. Reportedly, Vakrangee is going through a Sebi probe on alleged manipulation of its stock price. Meanwhile, Balram Garg, managing director, PC Jeweller has categorically stated PC Jeweller has nothing to do with Vakrangee and the fundamentals of the company remain strong. "I can't comment on rumours. I really don't know where they come from and what is the basis of that. PC Jeweller is working in the same way as it was functioning till date," told Balram Garg to Zee Business.
Garg urged investors to not go by the rumours and have faith in the company as they did before. He also assured investors that the promoters are not going to participate in the buyback. PC Jeweller is scheduled to report its March quarter results on May 25, 2018.
WATCH PC JEWELLER MANAGEMENT SPEAKING TO ZEE BUSINESS
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.