India's PC Jeweller swings to Q1 profit on robust demand

PC Jeweller

14/08/2024 07:03

BENGALURU, Aug 14 (Reuters) - India's PC Jeweller  PCJE.NS  swung to a profit in the first
quarter on Wednesday as promotions and discounts drove demand.
    It reported a consolidated net profit of 1.56 billion rupees ($18.6 million), compared with a
loss of 1.72 billion rupees a year earlier, snapping six straight quarters of losses.
    Revenue from operations surged nearly six-fold to 4.01 billion rupees.
    Additionally, the company, which has struggled with a liquidity squeeze due to disputes with
some of its lenders, said it is in the process of offering one-time settlements to the banks.
    For further results highlights, click [Full story].


    KEY CONTEXT 
    Indian jewellery retailers are responding to higher gold prices by either raising the selling
prices of their products or providing discounts to attract customers.
    However, fewer wedding days during the quarter, heightened competition from regional players,
and lower footfall due to widespread heatwaves in the country dampened demand for jewellery.
    Larger rival Titan  TITN.NS  missed quarterly profit estimates as higher gold prices dampened
demand, while Kalyan Jewellers  KALN.NS  reported higher profit owing to better sales.
    
    PEER COMPARISON
    
                                   Valuation     Estimates (next 12         Analysts' sentiment
                                   (next 12           months)         
                                    months)                           
                      RIC        PE     EV/EBI  Revenue     Profit    Mean     # of     Stock to
                                        TDA     growth %    growth %  rating*  analyst  price
                                                                               s        target**
 PC Jeweller           PCJE.NS    9.04  --        16.52      91.17    Buy            1      0.49
 Titan Company         TITN.NS   68.44   46.67    11.02      16.87    Buy           22      0.92
 Kalyan Jewellers      KALN.NS   58.87   33.08    31.49      41.83    Buy            7      0.89
 India                                                                                  
 Senco Gold            SENC.NS   33.16   19.02    20.12      27.44    Strong         4      0.92
                                                                      Buy               
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock
is trading above the PT  
    
    APRIL-JUNE STOCK PERFORMANCE
    

-- All data from LSEG
-- $1 = 83.9075 Indian rupees

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PCJE Q1 vs peers    https://tmsnrt.rs/4crYFua
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 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by Sonia Cheema)
 ((AshnaTeresa.Britto@thomsonreuters.com;))