PC Jeweller is into jewellery segment and continuously opening showroom across India to achieve the strategic growth path. For the last 2 year, company is continuously investing in new show room and now owns 64 showroom and out of that 11 is based out of Delhi. With Billion $ plus market capitalizations, PCJ Q4, FY16 shows that company is struggling to grow with de-growth in profitability whereas the share price is going up with a hope that continuous rise in gold price is going to help the organization to come out with better result. Their international business is also under pressure post political and economic concerns in its major market.
The current share price indicate
that P/E is high whereas EPS is going down. It is advisable to wait for the
equity price to correct and factor in the challenges in the share price. Post
that one may start accumulating it with small number in the delivery form and
then play around with economic growth. If one decide to invest then he or she
must hold the share for minimum few years to expect good return
Disclaimer - Consult your Financial
advisor before investing
nice informative blog and offer to investment is so valueable thanks for sharing
ReplyDelete