InvestorQ : pc jewellers is going up or down in market . can I buy shares of pc jeweller
kartik verma made post

pc jewellers is going up or down in market . can I buy shares of pc jeweller

Answer
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Khushi Patel answered.
1 year ago


PC Jewellers has been one of the oldest jewellers in India and is based out of Kolkata with outlets across the country. Due to its strong brand, the company had a solid listing and also touched a lifetime high in 2017. However, since the beginning of 2018, the stock has been on a continuous downtrend and is down over 90% from the peak levels. When any stock falls 90%, you can be sure that something is majorly wrong with the company.

Over the last year, the company has had some serious lapses in disclosure and corporate governance. Look at some of the data points. The company reported a huge loss in the March quarter after it had recorded discounts of Rs.520 crore to export customers to clear inventory. CRISIL and CARE have also downgraded the debt of the company to near-speculative grade, so funds would be hard to come by. But the big problem has been poor disclosure, For example, the company did not disclose that it had a business relationship with another dubious company, Vakrangee. Also, the promoter gifted his shares to a family member through off-market transactions, which were not reported.

The stock is down nearly 95% from its Jan-18 price of Rs.600. You would be better off buying a jewellery stock like Titan where the business quality is more credible.