Some basics -
As pointed out by @phreakv6, even i find sudden rise in CFO in 2017 just after demo intriguing. Working capital requirements suddenly turned around (became positive) completely…all receivables received all of a sudden! Cash rose from 300 cr -> 1120cr.
Reg financials, 10 yr cPAT (2500 cr) vs cCFO(640 cr). That too aided by demonetization (839 cr in FY17) a big red flag!
Another related point is it’s huge receivables, which they say is because of exports business. Why a B2C company got this kind of receivables? In comparison, Titan got not much receivables! Are the profits real? Why would a company, which claims there is such huge market domestically with superior B2C margins, even try going for exports with these kind of receivables?
My jeweler friends had intimated about wrong practices that were prevalent with this brand. They never spoke highly of the promoters or its products. Many of them have been dealing with PCJ from last many years.
Share gift to non promoter #Hindsight bias
When both scuttlebutt and financials puts question mark on corporate governance & mgmt, i tend to stay away from such companies. One must look beyond numbers. Scuttlebutt helped me stay away from many value traps such as Kwality, Vakrangee. One should always look for ‘quality of earnings’ rather than ‘mere earnings’. Promoters must be ethical, else would destroy shareholder wealth in long run.