Shares of PC Jeweller hit a new life-time of ₹393.90 on the NSE; the stock has gained about 44 per cent since ratings firm CARE Ratings reaffirmed its stable outlook and ratings at A+ on the company’s ₹500-crore fixed deposit programme in early August. This has been followed by the company’s long-term rating upgraded by Crisil to A+/Stable on August 16 from A/Stable earlier. Crisil has also reaffirmed the short-term term rating to A1.

The company’s stock, which had been significantly underperforming its peers Titan Company and Tribhovandas Bhimji Zaveri until July 31, has tremendously outperformed the duo after two back-to-back good ratings outcome. Despite this, the stock looks cheap at 13 times FY18 estimated earnings, compared to 51 times and 29 times for Titan and TBZ, respectively.

The company continued its good show in the June 2017 quarter with revenues and net profit growing 27 per cent each year-on-year, which is likely to continue thanks to the festive and wedding season in the second-half of FY18.

The company has positioned itself as a wedding jeweller; and wedding jewellery continues to constitute bulk of its overall sales, PC Jeweller said during the Q1 results presentation.

Besides, addition of new stores, new collections (Amalia, Mother and Tatvam), benefits of acquiring the Azva (brand from WGC) online portal and GST will help the stock continue its strong performance.

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