PC Jewellers

(Varun) #288

I am not saying that PCJ is fake or growth is fake. I am just saying increasing spending on advertising or hiring film stars does not indicate good financial health.

(MHS) #289

All these things doest not matter once u realized u cannot ‚ÄúTRUST‚ÄĚ the management, as the price on screen saying this all since the last three months‚Ķ

Think this way: When u r buying any stock, u r part of business. In doing business, u realized your partner is cheating, it does not matter at all how they are doing business…

To put it in very harsh words: How one can sleep (read as doing business) with someone, once known that they are cheating or trying to cheat behind u r back…

First Denial…then finding reasons defending the company… then more smoke comes out…then trying to find facts…then story becomes ugly…then acceptance…booking loss… and then…realization and lesson learned.

so if u smell or smoke any thing especially small or midcap companies, if u have higher allocation, which effects u r PF and returns, then just get out first, and try to do the above para/process to protect our gains.

(Rohit) #290

Yeah , lower debt to equiy ratio was the reason which made me hold this since IPO. Most of the other companies like TBZ , TARA Jewels , Gitanjali had huge debts.

(Rohit) #291

‚Äúso if u smell or smoke any thing especially small or midcap companies, if u have higher allocation, which effects u r PF and returns, then just get out first, and try to do the above para/process to protect our gains.‚ÄĚ

This sounds good to me. Will try to apply this in near future. Thanks

(manivannan.g) #292

Hey Guys, any idea what these folks are trying to do ? buying and selling at mere 20-70 paise gains. Not able to understand though.

(LTInvestor) #293

Does someone know why the company has Rs275cr of interest expense when the debt is just Rs.631cr. Is it interest on payables which are Rs. 3000cr?

(Rohit) #294

Even a 50 paise gain can make them a profit of 20-30 lakhs in seconds , considering huge quantity…seems they are minting money like anything…stock down 22% today now

(atul1082) #295

These deals, to my limited knowledge, are increasing the volumes of trade while share price is going down.Therefore it scares the retailing investors who follows selling.
Having said above, PCJ is a very peculiar case which is expanding network as per media reports, so far has shown good nos in every aspect, every anchor on CNBC used to recommend buying till few months back and I used to miss the opportunity in this as well as vakrangee.
Disc:,not invested

(Rohit) #296

When I am placing a intraday trade in my system its not allowing me to do and my all intraday trades are getting rejected for PC Jwellars (only delivary is allowed). Than how these guys are able to trade intraday.

Is it broker specific. I have SBI CAPSEC trading and dmat account.

(AvinashMb) #297

From my experience in the market I have seen that anything which is too good to be true normally will show up as redflags in people’s radar. It takes at least 2-3 months before these red flags become known to the general public and then the stock tanks.

In the case of PC Jewelers that was its association with Vakarangee , though denied by them , there cannot be smoke without fire.

(LTInvestor) #298

The debt schedule as per annual report is:
Cash credit facilities - Rs. 66.21cr (11%)
Packing credit facilities - Rs. 186.58cr (8%)
Post shipment credit - Rs. 126.96cr (8%)
Demand loan - Rs. 60cr (10.95%)
CP - Rs. 194cr (8.5%)

So total interest as per above should be about Rs.65cr to banks. But total interest expense paid as per cash flow statement is Rs270cr. So Rs. 215cr has been paid out to whom??

Looks like I should close my long future. Got bit protected by the put!

(Mahendra243) #299

I think those are done on 30th april when PC was there in the FNO…today it is ban for FNO…i think that large postion can only be taken in FNO trades…i think…not sure though

(manivannan.g) #300

Thanks Atul ! this makes sense, these operators are creating panic in the market. Unlike vakrangee, the CPJ stores are for real. If we see the latest intimation regarding the new showroom. I’ve googeled the address, and to my surprise some google user has posted this picture way back in Dec-2017.

As per intimation the store will be opened on 08-April.

But google user pic (was posted on 27-Dec):

But as per their FB page, it was opened as annotated.

(Rohit) #301

ok , but are you guys able to put an intra day trade in PCJ. My broker SBI cap sec is not allowing me to put intra day trade since morning. Just wanted to know if its broker specific.

(LTInvestor) #302

This is getting really interesting. If you paste ‚Äú3-6-327/328, Doshi Chambers, Basheerbagh‚ÄĚ on google you will find that it was Gitanjali Gems storeroom. Also, it is home to Doshi Gems and Jewellery. Looks like the store was always there and goes on changing franchisee.

(manivannan.g) #303

yes it was… there’s no signs of Gitanjali/Doshi after Jul-2017. Did PC just bought that store ? :thinking:

(Radiozammy) #304
  1. My understanding was that Vakrangee had already divested its stake in PCJ and sold off. Where can we see this data to confirm this ?

  2. Limited disclosure and clarification by the PCJ management on this whole ‚Äúgifting‚ÄĚ thing is heavily negative given circumstances. Is this a relative or not ? If so, what is their name ? Has this relative now sold off his/her stake ?

  3. In all the interviews i went through, management (CEO- balaram garg and CFO) all seem to indicate that ParamChand , the elder brother/partner is now 68 and not involved in day today operations, has gifted his share since it is his fortune and considering his age, it is common. Does this gentleman plan on gifting more ( assuming in all sincerity without exchanging cash, plans on spiltting his fortune between family) which will in turn bring down the promoter holding ? Balaram garg holds about 34% and rest is by ParamChand and together now they have about 58%. Another 8-10% gifting and promoter stake is below 50%. Lots of questions on which a more sincere and ethical management could have taken more initiative to squash rumors and get in front of the issue.

Disc: Invested

(Rohit) #305

Stock down 27% today…dont know where it is going to stop

(Susindar) #306

Rightly said. Most recent quarter interest expenses is Rs80Cr. Annualized will be Rs320cr. So at least another Rs2500 cr loan is shown elsewhere in the BS. Maybe a corporate guarantee or part of other liability.

(atul1082) #307

In my opinion, the gifting officially has been done to a linear relative as transaction value is zero