PC Jeweller share price jumps 55% this month; what's driving this multibagger stock?

New Delhi, July 10, 2025 – PC Jeweller Ltd, once a laggard in the small-cap segment, has turned heads this month with a staggering 55% surge in its share price, making it one of the top-performing stocks on the Indian bourses. From trading around ₹29.65 at the start of July, the stock has rallied to ₹46.10 (as of July 10), sparking renewed interest from retail investors and speculators alike.

This meteoric rise has raised the question—what’s fuelling PC Jeweller’s unexpected comeback?

Recent Stock Performance

The stock has been witnessing sharp intraday moves throughout July. On July 9, PC Jeweller shares closed nearly 15% higher and continued the bullish momentum on July 10 with an intraday high of ₹46.10 on the NSE. The volumes have also seen a major spike, indicating strong buying interest.

In just the last 10 sessions, the stock has gained close to ₹16, delivering impressive short-term returns for those who entered during the consolidation phase around ₹30.

Key Factors Behind the Rally

1. Debt Restructuring Progress

One of the biggest overhangs on PC Jeweller’s stock in recent years was its mounting debt and legal troubles with lenders. However, recent developments around the company’s One-Time Settlement (OTS) proposals with financial institutions have sparked optimism.

“Reports suggest that the company is actively engaging with lenders to finalize the OTS route, which, if accepted, would clean up its balance sheet significantly,” said Avinash Gorakshkar, Head of Research at Profitmart Securities. “This is a major trigger for re-rating.”

2. Revival in Jewellery Demand

The broader jewellery retail sector has seen an uptick in demand, supported by strong wedding-season sales and stable gold prices. According to the World Gold Council, Indian gold demand is expected to remain robust in H2CY25.

As a known player in the bridal and fashion jewellery space, PC Jeweller stands to gain from this trend. Investors may be factoring in a sectoral tailwind that could aid in the company's turnaround.

3. Buzz Around Promoter Activity

There have been market rumors regarding promoter stake realignment or the potential entry of strategic investors. Although no formal announcements have been made, such speculative triggers often drive momentum in penny or small-cap stocks.

“While these are unverified developments, speculative investors tend to latch onto any signs of corporate activity,” said an equity strategist at a Mumbai-based brokerage who preferred anonymity.

4. Technically Driven Rally

From a technical standpoint, the stock broke out of a prolonged consolidation range between ₹22 and ₹30 earlier this month. The breakout was accompanied by strong volumes and bullish RSI and MACD crossovers.

“PC Jeweller is currently in a short-term bullish trend. If it sustains above ₹45, we may see targets of ₹52–₹60 in the near term,” said Rajesh Palviya, VP–Technical and Derivatives Research at Axis Securities.

Market Context: Small-Cap Momentum in July

The rally in PC Jeweller also coincides with a broader bullish sentiment in small-cap and micro-cap segments. July has seen renewed retail participation, driven by the success of recent IPOs, robust liquidity, and improved domestic macro indicators.

“Retail investors are looking for turnaround stories and multibagger potential. PC Jeweller fits that narrative, especially at such a low price point,” noted Mehul Kothari, AVP–Technical Research at Anand Rathi.

However, experts also advise caution, given the volatile nature of such sharp upmoves without concrete fundamental backing.

Company Fundamentals: Still a Work in Progress

Despite the rally, PC Jeweller’s fundamentals remain under stress. The company reported a net loss of ₹71 crore in Q4 FY25, compared to a net profit of ₹78 crore in Q4 FY24. Revenue has also been sluggish due to reduced store count and legal hurdles.

The company's current market cap stands at just over ₹1,800 crore, far lower than its peak valuation during 2017–18 when it was a market darling.

Also, SEBI proceedings and pending cases related to alleged insider trading and corporate governance lapses continue to hover over the stock.

Investor Outlook: Risk-Reward at Play

While the recent rally has rewarded short-term traders, long-term investors remain cautious. The stock still carries a high-risk tag due to its corporate governance history, debt burden, and weak financials.

“Investors should not get swayed solely by the price movement. Unless there’s a clear turnaround in fundamentals and transparency in financial disclosures, it’s more of a trading bet than an investment opportunity,” said Nirav Karkera, Head of Research at Fisdom.

Retail participants are advised to adopt a wait-and-watch strategy and track any formal announcements related to the company’s restructuring or investor induction plans.

PC Jeweller’s 55% rally in July 2025 highlights the volatility and potential of small-cap stocks in India’s dynamic equity market. While technical triggers, speculative buzz, and sectoral momentum are driving short-term gains, sustainable value creation will depend on the company’s ability to clean its balance sheet, regain trust, and demonstrate earnings revival.

For now, it remains a speculative multibagger—rewarding for some, but risky for many.