Shares of PC Jeweller jumps over 5% to hit intra-day high of Rs 164 on NSE after the company has announced December 10, 2024, as the record date for its proposed 1:10 stock split.
This move follows the approval received from shareholders via a postal ballot on November 21, 2024, and a subsequent resolution passed by the Board of Directors on November 28, 2024.
Details of the Stock Split
The stock split will convert one existing equity share with a face value of Rs 10 into ten new equity shares, each with a face value of Re 1.
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This is the first-ever stock split in the company’s history, marking a significant milestone.
Why Companies Split Their Stocks
A stock split is typically aimed at making shares more accessible to smaller investors and increasing liquidity in the market.
By reducing the nominal value per share, the company hopes to attract a broader range of shareholders and stimulate greater investor interest.
Financial Performance
PC Jeweller also reported a profit after tax (PAT) of Rs 179 crore for the quarter ending September 30, 2024, compared to a loss of Rs 152 crore in the same period last year. The company’s EBITDA for the quarter stood at Rs 129 crore.
Stock Performance and Technical Outlook
The announcement has had a positive impact on the stock. On Thursday, PC Jeweller shares rose by 3% to close at Rs 158. The stock has experienced a remarkable 450% surge in value over the last year, reflecting strong investor sentiment.
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Commenting on the technical outlook Anshul Jain, Head of Research at Lakshmishree investments said that PC Jewellers is currently trading in a well-defined range of Rs 165-Rs 130 on the daily chart, presenting a lucrative opportunity for range-bound traders. This consolidation phase is likely to persist for the next 6 to 8 months, making it ideal for those who prefer buying near the lower end of the range and selling near the upper end.
However, Jain also added that for trend-following investors,
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