InvestorQ : pc jewellers is now going very low. I have invested huge stock. can you give details for what about future position for pc jewellers.
saranya Maheshkumar made post

pc jewellers is now going very low. I have invested huge stock. can you give details for what about future position for pc jewellers.

Answer
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Isha Tharwani answered.
1 year ago


Look to shift out of PCG into Titan. You are correct that the stock has corrected substantially in the last couple of years ever since there was news of Vakrangee dealing in a block of shares of Vakrangee. PCJ does have some good jewelry brands but corporate governance has been a major issue with the banks and the stock markets are not too happy with such a situation. Last year, the company had also announced a buyback which never went through. Also in the March 2019 quarter, the company reported a huge loss of Rs.378 crore due to write-offs that the company had to take and that has also impacted sentiments.
The problems for the company started in early 2018 when Nirav Modi had defaulted on fraudulent loans worth $2 billion from PNB. That forced the banks to tighten norms for lending to the gems & jewellery sector and PCJ was among the major losers and lost nearly 60% in the next 3 months. Subsequently, the corporate governance issue has surfaced. I am not sure what your purchase price of PCJ is but it would be largely futile to sit on the stock hoping. The next time you get a bounce, exit the stock and shift to some other stock like Titan.