Since december 16 is the last day to purchase stock in order to be eligible for its first-ever subdivision at a ratio of 1:10, PC Jewellers Ltd. will concentrate on that date. The stock is currently trading below Rs 175. The jewellery stock has gained 247.17% so far this year, making it a 2024 multi-bagger.

The issuance of PC Jewellers preferential shares, which will be adjusted to the stock split ratio on Monday, is expected to attract the investment of large banks at the latest. Is it appealing to purchase?

Price of PC Jewellers' stock:

With a market valuation of Rs 8,142.88 crore, the stock closed at Rs 174.80 per share on friday of last week, down 0.7% on the BSE. The stock is multi-fold higher than its 52-week low of Rs 32.27 each and is close to its 52-week high of Rs 186.80 apiece.Preferential Issue for PC Jewellers:

On december 11, the board gave the company permission to issue 5,17,11,462 (Five Crore Seventeen Lakh Eleven Thousand Four Hundred Sixty-Two Only) equity shares with a data-face value of 10/- (Rupees Ten Only) each to Consortium Lenders who fall under the "Non-Promoter, Public Category" category through preferential allotment on a private placement basis.

SBI, Union bank of India, punjab National bank, Axis bank, IndusInd bank, bank of India, IDBI bank, Karur Vysya bank, indian Overseas bank, Canara bank, indian bank, bank of Baroda, IDFC First bank, and kotak mahindra bank are the suggested allottees in the preferential issue, according to the regulatory filing.According to PC Jewellers, on december 16, 2024, the issue price and number of equity shares will be modified to reflect the division or split of the data-face value of the company's equity shares from Rs 10/-per share to Rs 1/-per share.

Splitting PC Jewellers' Stock:

For the purpose of subdividing or splitting the company's equity shares, PC Jeweller has set december 16, 2024, as the record date. This means that one fully paid-up equity share with a data-face value of ₹ 10 (Rupees Ten Only) will be divided or split into ten equity shares with data-face values of ₹ 1 (Rupee One Only) each.As a result, the stock split ratio is 1:10. PC Jeweller is splitting its stock for the first time ever.

Share splits, in general, allow listed firms to divide their current shares into a ratio that they choose for a variety of reasons. These could be taken to increase liquidity, decrease the stock's worth, lower its price, or just draw in new business from both current and potential investors.The Basics of PC Jewellers:

Technicals: According to Trendlyne data, the stock is marginally below the 5-day SMA of Rs 176.6 but has surpassed its 100-, 150-, and 200-day SMAs. Additionally, the stock's MFI and RSI are at 59.8 and 59.9, respectively, which is stable because the two indicators are overbought above 70 and oversold below 30. Additionally, PC Jeweller is trading above five out of nine oscillators in a positive zone and seven out of eight SMAs.

Fundamentals: Over the last year, the stock price increased 421.47% and outpaced its sector by 375.16%; promoter pledges are nil, and mutual fund holdings stayed at 0% in the most recent quarter.

The Basics of PC Jewellers:

Technicals: According to Trendlyne data, the stock is marginally below the 5-day SMA of Rs 176.6 but has surpassed its 100-, 150-, and 200-day SMAs. Additionally, the stock's MFI and RSI are at 59.8 and 59.9, respectively, which is stable because the two indicators are overbought above 70 and oversold below 30. Additionally, PC Jeweller is trading above five out of nine oscillators in a positive zone and seven out of eight SMAs.

Fundamentals: Over the last year, the stock price increased 421.47% and outpaced its sector by 375.16%; promoter pledges are nil, and mutual fund holdings stayed at 0% in the most recent quarter.

Nevertheless, according to Trendlyne data, its debt-to-equity ratio of 1.39 is greater than 1, suggesting that the company's assets are financed through debt; its price-earning ratio is 614.01, which is higher than its sector PE ratio of 70.67; and its return on equity (ROE) for the most recent fiscal year was -21.46%, or less than 10%, indicating an inefficient use of shareholder capital to generate profit.

A R Ramachandran, an independent research analyst, had stated that a daily close over the 165 resistance level would result in a short-term goal of 187.Concerning PC Jewellers:

It all began in 2005 when PC Jeweller set up shop in Karol Bagh, New Delhi, with the goal of redefining style, elegance, and attractiveness through exquisite jewels. With stores in 67 cities and 17 states, this jewellery retail network is currently one of the fastest-growing in the industry.