-India’s PC Jeweller posted a rise in first-quarter profit on Friday, as elevated gold prices helped the company boost its bottomline.
The jewellery retailer’s consolidated net profit grew 5% to 1.62 billion Indian rupees ($18.58 million) in the quarter ended June 30. Its revenue from operations jumped 81% to 7.25 billion rupees.
KEY CONTEXT
Indian jewellery retailers are keeping pace with soaring gold rates by raising their own price tags. Spot gold [XAU=] climbed 5.5% in the quarter ended June 30, continuing a bullish run fueled by investor flight to safe-haven assets amid U.S. trade jitters and Middle East tensions.
Analysts say the rally has been a golden opportunity for local jewellers, padding their earnings even as buyers shift to lighter, more affordable pieces.
Peer Titan, too, reported higher domestic sales, benefiting from the rise in gold prices.
PEER COMPARISON
Valuation (next 12 Analysts’
months) Estimates (next 12 sentiment
months)
RIC PE EV/EBI Price/ Revenue Profit Mean No. of Stock to Div
TDA Sales growth (%) growth rating* analyst price yield
(%) s target** (%)
Titan Company Ltd 59.41 39.80 4.71 12.68 30.63 Buy 25 0.87 0.33
Kalyan Jewellers 49.79 28.51 NULL 27.24 46.04 Strong 7 0.90 0.20
India Ltd Buy
Senco Gold Ltd 19.82 11.86 NULL 17.59 40.43 Buy 6 0.62 0.32
* 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
*** There is no available data for PC Jeweller
APRIL-JUNE STOCK PERFORMANCE
— All data from LSEG
— $1 = 87.1760 Indian rupees
(Reporting by Manvi Pant and Praveen Paramasivam; Editing by Shailesh Kuber)
