PC Jewellers shares hit 10% upper circuit on PNB approval for one-time settlement of dues

PC Jewellers shares hit a 10% upper circuit at Rs 56.2 in Monday’s trade on BSE after the company received approval from Punjab National Bank (PNB) for a one-time settlement of its outstanding dues.

In a regulatory approval, PC Jeweller informed that “Punjab National Bank, the third largest bank after State Bank of India amongst consortium banks of the company in terms of its exposure, has conveyed its approval to the One Time Settlement (OTS) proposal submitted by the company.”

The terms and conditions of approved OTS include cash and equity components payable under the settlement, release of securities and mortgaged properties, etc., the filing said.

PC Jeweller did not mention the outstanding dues with all banks and also the details of OTS.

In an investor presentation in late May, PC Jeweller mentioned that the withdrawal of the petition from the National Company Law Tribunal (NCLT) by SBI and favourable consideration of its OTS proposal by the banks are positive developments.”The company has again started focusing on increasing its brand presence and has started its marketing initiatives for the same, which is having a visible impact in the ongoing quarter,” it had said.The company continues to maintain a wide network of 60 showrooms (including 6 franchisee showrooms) located in 44 cities spread across 15 states across India as of March 31st, 2024.”Also, the core strengths of the company in the form of manufacturing & designing capabilities, manufacturing facilities, skilled staff, soft skills in the form of systems and procedures, customer policies, etc remain intact,” PC Jeweller said.

On a year-to-date basis, the stock has surged 11%. Meanwhile, it has also delivered 90% returns to its investors in the past year.

In technical terms, the relative strength index (RSI) of the stock is currently at 46. An RSI below 30 is considered oversold, and above 70 is overbought, according to Trendlyne data. The MACD is at 0.2, which is below its signal and center line, this is a strong bearish indicator.

Moreover, the stock price is higher than the 5-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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