PC Jeweller Limited

Consumer Cyclical — Luxury Goods · NSE

₹16.18+₹1.73 (+11.97%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of PC Jeweller Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

PC Jeweller Limited manufactures, sells, and trades in gold, diamond, silver articles, precious stone, and gold and diamond studded jewellery for men and women in India and internationally.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees700

Annual revenue₹3,353 Cr

How does it make money?

Turns over ₹3,353 Cr a year. Of every ₹100 of sales, about ₹21 reaches shareholders as profit, with ₹26 left at the operating level before interest, tax and depreciation. Each of its 700 employees supports ₹4.79 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin26.1%

Net margin21.3%

Revenue / employee₹4.79 Cr

Who are its competitors?

The closest listed comparisons in its industry are TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

What is its competitive advantage?Little sign of one

Returns on capital of 10.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE10.3%

ROE8.7%

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +36% while net margin moved -359% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+36%

Margin effect-359%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.35 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

71/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

58/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

21.9x

1.3Y Median

15.0x

16 monthly readings · mean 15.6x · range 11.5x–19.9x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 45% above its 1.3y median of 15.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 68% below the peer median of 69.2x.

vs. its own history

Expensive

15.0x median over 16 months · +45%

vs. sector peers

Cheap

69.2x median of 4 peers · -68%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

21.9x

P/B

1.51x

EV/EBITDA

19.4x

PEG

0.50

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 16.3% to 26.1% over 3 years.
Debt is being paid down
Total debt is down 69% over 3 years.
Return on equity is rising
ROE has improved from -5.5% to 8.7%.
Very low debt
Debt/Equity of 0.14x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Valuation above its historical average
At 21.9x the stock trades 45% above its own median of 15.0x.

Red Flags

2 items require attention · 2 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹81 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 86% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 16.3% to 26.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 69% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 68% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 45% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.7% CAGR
Latest reported year was 21.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 24%✓ 26.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹81 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹15,869 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.9x

Fair

Fairly valued against the generic band

P/B Ratio

1.51x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.74

Profitable

Profitable on a per-share basis

ROE

8.7%

Moderate

Moderate capital efficiency

ROCE

10.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.14x

Low

Conservative leverage

Revenue Growth (YoY)

21.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

43.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹81 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹16.18

P/E (Forward)

0.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

26.9%

Good

Healthy core-business profitability

Net Margin

22.1%

Good

Strong bottom-line conversion

Current Ratio

7.05

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.35

Defensive

Steadier than the market

52W Range Position

90%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

13.8 / 12.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

65.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,473 Cr	₹605 Cr	₹2,245 Cr	₹3,353 Cr	+10.7%
EBITDA	₹402 Cr	-₹125 Cr	₹528 Cr	₹874 Cr	+29.5%
EBITDA Margin	16.3%	-20.7%	23.5%	26.1%	—
PAT (Net Profit)	-₹203 Cr	-₹629 Cr	₹578 Cr	₹714 Cr	—
EPS	₹-0.44	₹-1.36	₹0.66	₹0.86	—
ROE	-5.5%	-21.5%	9.3%	8.7%	—
ROCE	10.2%	-4.3%	8.1%	10.3%	—
Total Debt	₹3,736 Cr	₹4,150 Cr	₹2,151 Cr	₹1,167 Cr	-32.2%
Free Cash Flow	₹97 Cr	₹64 Cr	-₹633 Cr	-₹81 Cr	—

🟢 Revenue has grown at 10.7% a year over 3 years.

🟢 EBITDA has grown at 29.5% a year over 3 years.

🟢 EBITDA Margin has risen from 16.3% to 26.1% over 3 years (+9.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹203 Cr to ₹714 Cr.

🟢 EPS has turned positive, from ₹-0.44 to ₹0.86.

🟢 ROE has risen from -5.5% to 8.7% over 3 years (+14.2 pts).

🟡 ROCE has held roughly flat at 10.3% over 3 years.

🟢 Total Debt has shrunk at 32.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹97 Cr to -₹81 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9,425 Cr

Total Liabilities

₹1,250 Cr

Total Debt

₹1,167 Cr

Cash & Equivalents

₹59 Cr

Operating Cash Flow

-₹77 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

1.2%

Insider Holding

54.2%

Corporate Actions

Ex-Dividend Date

19 Sept 2018

Peer Comparison

Company	P/E	ROE
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

6 general

PC Jeweller share: 70% returns in 6 months! What is driving the stock? Experts give 3 reasons to buy | Target, stop-loss

Livemint, 16 Oct

PC Jeweller Hits New Debt-Free Milestone! Jewellery Stock Up 200% in 3 Yrs | What It Means For Investors?

Goodreturns, 16 Oct

PC Jeweller, Senco Gold, other jewellery stocks rise up to 17%: Here's why

Moneycontrol.com, 16 Oct

PC Jeweller stock jumps 11% after Cupid promoter Halwasiya buys shares worth ₹70 cr

BusinessLine, 16 Oct

PC Jeweller share: 50% returns in 6 months! What is driving the stock? Experts give 3 reasons to buy | Target, stop-loss

TradingView, 16 Oct

PC Jeweller secures no objection letters from all 14 banks post debt clearance

scanx.trade, 18 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong14.5/20

🟢Financial HealthStrong15/20

🟢GrowthStrong13.6/20

🟢ProfitabilityStrong10/15

🟡ValuationFair7.3/15

🟡RiskModerate4.5/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓Revenue growth stays above 8% a year10.7% CAGR
✓EBITDA margin holds above 24%26.1%
✗Free cash flow remains positive-₹81 Cr
✓Debt / EBITDA stays below 2x1.3x
✓ROCE stays above 8%10.3%