PC Jeweller down Rs 20,000 crore in m-cap may still not be a buy

ET Intelligence Group: Shares of PC Jeweller, India’s second largest jeweller have fallen by nearly 70 per cent since January, wiping out more than Rs 20,000 crore of the shareholders wealth. The first major sell-off in February was triggered by speculation over the company’s relations with VakrangeeNSE -4.99 %, a company which, according to reports, is being probed by Sebi for stock manipulations.

The trigger for the current panic is that PadamNSE 0.00 % Chand Gupta, one of the two promoters, gifted nearly 2 per cent of his 26 per cent holding in the company to an undisclosed relative. This has raised concerns whether there may be more such deals in the future leading to the sale of shares in the open market, which if it happens, would affect the share price.

“We are not able to understand the reason behind so much decrease in the price. We do not have control over it. But we can ..

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