PC Jeweller shares rose more than 11 per cent on Friday, September 4, as the jewellery retailer came closer to its goal of becoming debt free by the end of September.
The news of the repayment provided new buying interest in the stock and took it to as high as a nine-month high.
The stock jumped 11.3 percent to ₹11.71 during afternoon trading, the highest level in almost nine months.
The stock also rose after PC Jeweller announced that it had paid off some of its debts with another bank under the terms of the settlement with its consortium of lenders.
The repayment brings the total number of consortium banks whose outstanding dues have been fully cleared to nine out of 14.
These repayments were made before their due dates, showing that the company has made significant progress in its financial restructuring, the company said.
Debt reduction becomes key market trigger
PC Jeweller’s debt reduction has been one of the main drivers of investor sentiment towards the company.
More than 96% of the remaining lenders’ outstanding debt was already repaid, leaving less than 4% to be settled, according to earlier updates.
The company has also planned for a virtually debt-free position, in July-September 2026.
Now September is here, investors are watching out for the next repayment announcement and if the company can achieve it in the time period they have given it.
The jewellery retailer becoming debt free could be huge because less borrowings would reduce interest expenses and also perhaps help the company to be more financially flexible.
It could also boost investor confidence in the company’s transformation.
Stock rally gathers momentum
The September 4 rally continues the gains from the previous trading session, when PC Jeweller shares had already risen 3.3 percent. The company’s market capitalisation went to around ₹11,250 crore for the trading session on Friday.
The stock’s recent performance is in line with the improved operational indicators. PC Jeweller had reported a 21% year-on-year growth in consolidated revenue for the first quarter of FY27, another great thing in the story of the turnaround of the company.
But with a share price of more than 50 per cent (a record high), investors will also be concerned about further debt-related news and results and the wider behaviour of jewellery.
Debt repayment is a positive development but the long-term success of business growth and profitability is still key to its future.
And for now, the market is focused on PC Jeweller’s final drive toward debt-free status.
With nine of 14 consortium lenders already settled and more than 96% of the remaining obligations reportedly discharged, the company is in a critical stage of its financial recovery.
Comments
Please to leave a comment on this article.